66% of Mid-sized Companies Achieved Last Year's Target Performance Despite Complex Crises

Mid-sized Enterprise Policy Magazine 'Jungsim' New Year Survey
About 80% of Mid-sized Enterprises Expect Worsening Business Environment This Year

[Asia Economy Reporter Kim Cheol-hyun] Despite adverse factors such as the resurgence of COVID-19 last year, the Ukraine war, and global inflation, a survey revealed that 66% of mid-sized companies achieved their management performance goals set at the beginning of the year.

The Korea Federation of Mid-sized Enterprises disclosed the results of the New Year survey of mid-sized companies containing this information on the 6th. This survey was published in issue 6 of the mid-sized enterprise policy magazine 'Jungsim.' Lee Ho-jun, the full-time vice chairman of the Federation, said, "The fact that more than half of mid-sized companies achieved their goals even in the worst crisis situation of 2022 reconfirms the clear status of mid-sized companies as a key policy target to concentrate community resources."

Regarding the Korean economic situation this year, about 22% of respondent companies predicted it would worsen significantly. 54% expected it to worsen somewhat, and only 24% of mid-sized companies responded that it would remain the same or improve slightly.

Views on changes in the management environment, closely related to the economic situation, were also negative. 56% of mid-sized companies answered that the management environment in 2023 would worsen somewhat, and 24% responded that it would worsen significantly.

Mid-sized company executives identified tax reform, including reductions in corporate and inheritance taxes (51%), as the most urgent policy task for mid-sized companies this year. The transition of the 'Mid-sized Enterprises Special Act' to a permanent law, which is set to expire in 2024, recorded 42.9%. Improvements in labor regulations such as the Yellow Envelope Act and flexible working hours (34.7%), support for securing new technologies like research and development (R&D) (28.6%), support for business restructuring and transformation (14.3%), and support for pioneering overseas markets such as exports (10.2%) followed. The evaluation of the Yoon Seok-yeol administration's economic and industrial policies by mid-sized company executives was 'average' at 52%.

Vice Chairman Lee said, "We will do our best to continuously expand various programs to strengthen corporate innovation capabilities so that the hopeful messages sent by mid-sized companies are not lost, and to lead substantial changes in laws, systems, and policies to improve the management environment," adding, "We will work closely with the government and the National Assembly to quickly make the Mid-sized Enterprises Special Act, currently pending in the National Assembly, permanent, actively reflect the specific demands of mid-sized companies, and ensure that additional comprehensive revisions follow to drive practical policy changes."