If we cannot break the paradox in which support shrinks and regulations increase as growth accelerates, we cannot revive the dynamism of the industrial ecosystem as a premise for long-term growth. We must swiftly launch a comprehensive policy package tailored to middle market enterprises by growth stage and industry—covering finance, research and development (R&D), taxation, and trade.
Kwak Kwan-hun, president of the Korea Middle Market Enterprises Association, said on the 19th at the "Expert roundtable for middle market enterprise scale-ups," hosted by the Federation of Middle Market Enterprises of Korea (FOMEK), that "to open the channel for 'real growth' in the Republic of Korea, it is urgent to strengthen the growth ladder based on corporations' continuous scale-ups."
At the roundtable, convened to explore ways to scale up middle market enterprises and strengthen the growth ladder, attendees included Vice President Lee Ho-jun of the Federation of Middle Market Enterprises of Korea (FOMEK), Kim Jae-eun, director of the Middle Market Enterprise Policy Division at the Ministry of Trade, Industry and Energy, Kim Jeong-hyeon, president of Woojin Industrial Systems, Kwak Kwan-hun, president of the Korea Middle Market Enterprises Association, Oh Yoon-hwan, research fellow at the Science and Technology Policy Institute (STEPI), and Lee Hye-ok, head of a center at the Korea Credit Guarantee Fund (KODIT), among other representatives from middle market enterprises, the government, academia, and related institutions.
Participants at the event emphasized financial support. Kim Jeong-hyeon, president of Woojin Industrial Systems, a middle market enterprise specializing in railcar manufacturing, said, "Upon becoming a middle market enterprise, not only did sharply higher interest rates hit us, but financial difficulties also intensified significantly in overseas expansion due to low guarantee limits and high guarantee fees," adding, "to activate middle market enterprise scale-ups as a key to boosting national growth potential, there is a need to redesign finance and guarantee policy systems for middle market enterprises from the perspective of 'continuous growth.'"
In addition, attendees agreed that, reflecting changes in the global industrial environment, the focus of middle market enterprise policy should be expanded beyond manufacturing to nonmanufacturing institutional sectors such as K-culture and K-food—where many middle market enterprises, including JYP Entertainment, Nongshim, OTOKI, and Samyang Foods, are concentrated—and that public-private cooperation should be strengthened to respond to artificial intelligence (AI) and the green transition, which have emerged as core elements of corporate management continuity.
Kim Jae-eun, director of the Middle Market Enterprise Policy Division at the Ministry of Trade, Industry and Energy, said, "By segmenting middle market enterprises by growth stage and providing tailored support, we will enhance policy effectiveness while actively exploring a variety of policy options to drive the continuous growth of middle market enterprises, including expanding service-sector middle market enterprises, strengthening capabilities to respond to changes in the industrial environment, and bolstering financial support," adding, "in particular, we will work closely with relevant ministries to enhance the economic and social value of middle market enterprises through innovative middle market enterprise technology development, win-win cooperation between small and middle market enterprises, and nurturing middle market enterprises that lead regional economies, and to expand the legal and institutional infrastructure to support this, rationalize growth incentive systems such as taxation and fiscal measures, and improve unreasonable regulations."