Mid-sized Business Sector "Welcomes Permanent Conversion of Long-awaited Mid-sized Business Special Act"

Amendment to Delete 10-Year Temporary Provision of Special Act for Mid-Sized Companies Passed in National Assembly Plenary Session

The "Special Act on Promoting the Growth and Strengthening the Competitiveness of Medium-sized Enterprises" will be converted into a permanent law after 10 years. The medium-sized enterprise sector expressed their welcome, stating that they will deepen the value of the Special Act as a connecting link in the growth ladder by strengthening cooperation models encompassing both small and medium enterprises and large corporations.

The Korea Federation of Medium-sized Enterprises (KMFME) announced this through a statement by Chairman Choi Jin-sik on the 30th, following the passage of a partial amendment bill at the National Assembly plenary session that removed the 10-year temporary provision of the Special Act. The KMFME said, "Based on the stable status of the Special Act as the legal foundation for policies supporting and fostering medium-sized enterprises, we will do our best for the healthy development of the entire corporate ecosystem."

The Special Act for Medium-sized Enterprises was enacted in January 2014 and implemented in July of the same year, based on broad bipartisan consensus on the need to build a growth ladder. However, since its validity period was limited to 10 years, there were many criticisms that it did not secure sufficient stability as a legal basis for policies related to medium-sized enterprises.

Choi Jin-sik, Chairman of the Korea Federation of SMEs

Since the enforcement of the Special Act, the number of medium-sized enterprises increased from 3,846 in 2013 to 5,480 in 2021. Sales rose from 629 trillion won to 852 trillion won, employment increased from 1.16 million to 1.59 million, and exports grew from 87.6 billion dollars to 113.8 billion dollars, confirming the effectiveness of the Special Act.

Chairman Choi said, "Through a comprehensive revision of the Special Act in the future, we will strengthen its substance to a level that can be felt on the ground by medium-sized enterprises, and make every effort to establish a legal and institutional system to promote the growth of medium-sized enterprises, including creating a medium-sized enterprise category in all other laws and regulations. Using the renewed Special Act as a stepping stone, we will accelerate multifaceted efforts to respond to rapid industrial environmental changes such as digital transformation, R&D innovation, talent development, energy saving and efficiency, and expansion of export investment, thereby faithfully fulfilling our role as a key driving force to strengthen South Korea's leading position in the economy," he said.