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A Study on Korean Government Policies for Leading SMEs

Author Hong, Jisung et al. Date 2018.05.30 Page
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We study the conditions and the competencies of the leading SMEs, defined as companies holding key positions in the trading network, and put forward policy improvement measures in order to foster autonomous innovation-induced growth among SMEs. It is necessary to secure new survival strategies and growth engines as the dynamics of large companies, which have led SME growth since the industrialization of Korea, have weakened. 

 

This study examines the importance, characteristics and core competencies of the leading SMEs based on corporate data published annually by Ministry of Small Businesses, survey data on leading SMEs, and advice from relevant experts in Korea. This study evaluates related support policies of the Korean government and performs case studies of foreign countries including Japan, Germany, the United States and Taiwan. 

 

In our analysis, we found that while there are many SMEs that have capabilities and can lead innovation-induced growth, they need government support to become leading SMEs. Although the support of government for SMEs has grown significantly over the last 20 years, there are few government policies focused on leading SMEs. 

 

We suggest that government make efforts to strengthen marketing capabilities of leading SMEs, enhance the innovation capabilities of supplier SMEs, and promote mutual growth and cooperation among SMEs.