SMEs and Small Business Owners "Actively Welcome Revision of SME Scope Criteria"

Main-Biz Association and Korea Federation of Micro Enterprises
Announce Official Statements

Small and medium-sized enterprises (SMEs) and small business owners have expressed their support for the proposed revision of the criteria defining the scope of SMEs.

On April 30, the Korea Management Innovation Association for SMEs (Main-Biz Association) issued a statement saying, "We actively welcome the Ministry of SMEs and Startups' decision to adjust the sales ceiling by industry."

The association further stated, "We highly appreciate this decision to adjust the SME criteria in line with inflation and changes in the economic structure," and added, "It is particularly meaningful as it provides new growth opportunities for many companies that were at risk of losing their SME status due to a simple increase in sales caused by rising production costs, such as higher raw material prices."

The association also commented, "We hope that this adjustment of the sales criteria will not remain a mere institutional improvement, but will serve as an opportunity for SMEs to secure sustainability and competitiveness in a rapidly changing economic environment. We also hope that institutional efforts will continue to ensure that SME criteria are continuously updated to reflect industry characteristics and changes in economic and price conditions."

Small business owners have also welcomed the revision of the sales criteria for small enterprises, which serve as the standard for small business status. The Korea Federation of Micro Enterprises stated, "This revision takes into account the inflation rate since 2015 and is seen as a measure that reflects the demands of the small business sector. We welcome the government's policy."

The federation added, "As a result of this announcement, companies that have lost their small business status due to a simple increase in sales caused by higher raw material costs, without any actual increase in profits, will now be able to receive benefits such as joint purchasing, tax support, and assistance programs. This is expected to be a great help, especially as small businesses face difficult times amid continued sluggish domestic demand."

On this day, the Ministry of SMEs and Startups finalized the revised sales criteria for SMEs at a meeting of economic ministers. According to the new plan, the sales ceiling for SMEs will be raised from a maximum of 150 billion won to 180 billion won, and the number of sales brackets will increase from five to seven. As a result, the upper limit of the sales criteria by industry will be expanded by 20 billion to 30 billion won compared to the current standards. For small enterprises, the sales ceiling will be raised from a maximum of 12 billion won to 14 billion won, and the number of sales brackets will increase from five to nine. The upper limit of the sales criteria by industry will increase by 500 million to 2 billion won compared to the current standards.