In 2023, domestic medium-sized corporations continued their sales and employment growth, but it was found that their operating profit and facility investment decreased, indicating a lack of qualitative growth.
According to the '2023 Basic Statistics on Medium-sized Corporations' published by the Ministry of Trade, Industry and Energy on the 5th, the number of domestic medium-sized corporations in 2023 was 5,868, an increase of 292 corporations (5.2%) compared to the previous year. 744 corporations were excluded from medium-sized status due to growth in large corporations, return to small businesses, or closures, while 1,036 corporations entered the medium-sized category due to graduation from small businesses or new establishment.
The number of employees in medium-sized corporations in 2023 was 1.704 million, an increase of 117,000 (7.4%) compared to the previous year. In terms of sectors, manufacturing employed 678,000, up 37,000 (5.8%) from the previous year, while non-manufacturing employed 1.025 million, an increase of 79,000 (8.4%).
Sales of medium-sized corporations in 2023 amounted to 984.3 trillion won, an increase of 22.9 trillion won (2.4%) compared to the previous year. The manufacturing sector showed significant growth, particularly in the automotive (15.7%), food and beverage (7.7%), and biohealth (5.1%) sectors, while non-manufacturing sectors increased mainly in professional sciences and technology (law, accounting, research, consulting, etc., 13.4%) and information and communication (9.3%).
The asset size of medium-sized corporations in 2023 was 1,227.3 trillion won, an increase of 130.6 trillion won (11.9%) compared to the previous year, while operating profit fell to 47.5 trillion won, a decrease of 10.5 trillion won (18.1%) from the previous year. This is interpreted as a base effect following a significant rise in operating profit after the end of the COVID-19 pandemic.
The total investment amount of medium-sized corporations in 2023 was 31.1 trillion won, a decrease of 7.8 trillion won (20.1%) compared to the previous year. While investment in research and development increased, facility investment was found to have decreased due to base effects.
The Ministry noted that medium-sized corporations are showing outward growth in terms of number of corporations, employment, sales, and assets despite challenging domestic and international conditions. However, declines in operating profit and facility investment, an increase in corporations intending to return to small business status, and a decrease in the proportion of medium-sized corporations with sales exceeding 1 trillion won were assessed as indicating a somewhat insufficient qualitative growth.
A Ministry official said, "We plan to establish a basic plan to promote growth in medium-sized corporations in the first half of this year, which will include specific support measures to expand customized support for medium-sized corporations, including finance, taxation, exports, manpower, and research and development, as well as identify and improve obstacles and regulations hindering corporate growth."