Korea’s medium enterprises stress autonomy to drive economic leap

[Photo by Lee Chung-woo]

South Korean medium enterprises on Friday called for corporate autonomy to drive the country’s economy to greater success amid forecasts of an economic slowdown next year.

“It is imperative to reevaluate the diminishing national influence that has been continuously expanding, invigorating corporate vitality and autonomy,” said Choi Jin-sik, chairman of the Federation of Middle Market Enterprises of Korea (FOMEK). “We must recognize the undeniable fact that companies are the producers of national wealth, a fundamental condition for a nation’s prosperity.”

Choi’s remarks were made during the commemorative event for the 9th Middle Market Enterprises’ Entrepreneurs Day held in Seoul on Friday.

Choi also highlighted the recent positive momentum achieved through government efforts to improve the business environment, particularly in swiftly addressing regulatory hurdles.

“Wisdom must be pooled to create an environment where companies and laborers engage directly in discussions and seek solutions across various sectors, including environmental and labor issues,” Choi said.

Marking his second year in office, Choi pointed to the transition of the Middle Market Enterprises Special Act to a permanent law as this year’s significant achievement.

“In the coming year, we’ll strive to transform the Special Act into a general law, ensuring a stable and unshakable legal foundation for middle-market enterprises by no later than 2025,” he said.

The Special Act transitioned from a provisional law on March 30 this year, entering full implementation from October 19.

The event felicitated 37 individuals, recognizing their contributions to Korea’s economic and industrial advancement within the middle-market enterprise sector.

Prime Minister Han Duck-soo and other key government figures, along with representatives and employees from middle-market enterprises, and stakeholders, totaling over 200 attendees, graced the occasion.

The Middle Market Enterprises’ Entrepreneurs Day event, established to uplift the spirits of middle-market entrepreneurs and disseminate a rational understanding of these enterprises, remains the largest annual legal event within the middle-market enterprise sphere, initiated in July 2014 to commemorate the enactment of the Middle Market Enterprises Special Act and the establishment of the FOMEK as a legally-recognized entity.

Prime Minister Han expressed the government’s commitment to bolstering innovative growth within middle-market enterprises through expanded regulatory reforms and financial and tax support. “We will systematically develop the Middle Market Enterprises Act while aiming to nurture 10,000 middle-market enterprises and achieve a $200 billion export target by 2030,” he said.

According to FOMEK data, middle-market enterprises in Korea came to 5,480 as of 2021, constituting 1.4 percent of the entire business entities.