The government will introduce a 'graduation delay' system that allows mid-sized companies to maintain their status for five years after transitioning to large firms. Additionally, it will launch the 'Decacore Project,' a 1 trillion won initiative aimed at securing independent technologies for mid-sized enterprises.
The Ministry of Trade, Industry and Energy announced these plans on October 1 during a meeting with mid-sized companies held by Minister Kim Jeong-kwan at Hanamicron in Asan, South Chungcheong Province. The announcement included the 'Third Basic Plan for Promoting the Growth of Mid-Sized Enterprises (2026-2030).'
Mid-sized companies account for only 1.5% of all businesses but contribute 15.3% of domestic sales, 17.9% of exports, and 13.9% of employment. Among manufacturing mid-sized firms, 85% are in the materials, parts, and equipment sectors.
In the second basic plan established in 2020, the government set a goal of achieving 6,000 mid-sized companies and $120 billion in exports by 2024. As of 2024, there are 6,474 mid-sized companies, with exports reaching $122.7 billion, surpassing the initial targets.
However, there has been a recent trend of companies reverting from mid-sized to small-sized status, while growth among those transitioning to large firms has stagnated. The focus of this third plan appears to shift from merely increasing the number of mid-sized companies to 'restoring the growth ladder.'
The government will first implement the 1 trillion won 'Decacore Project' from 2027 to 2035. This initiative will involve collaboration between mid-sized companies, universities, and research institutions to secure ten key advanced technologies at the system level, moving beyond individual materials and components.
A planning committee will be established within the year, involving industry and technology supply chain experts to identify candidate projects. Support will be provided across various stages, from core materials, parts, and equipment technology development to patents, standards, market access, and international expansion.
A support system tailored to different stages of company growth will also be established. Mid-sized candidate companies will receive assistance in translating small business R&D outcomes into reliable mass production evaluations and commercialization support from the Ministry of Industry. Initial mid-sized companies will see expanded support for finance, R&D, and facilities.
Notably, the government plans to amend the mid-sized enterprise law to introduce a 'graduation delay' system, allowing mid-sized companies that first meet large company criteria to retain their status for five years. For initial mid-sized companies, a special tax reduction for small businesses will be applied at half the rate for the first three years after entering mid-sized status, and a plan to support 50% of the salaries for newly hired research personnel for three years is also in the works.
The government will also focus on fostering regional mid-sized companies. In connection with the five major growth engines and three special projects, it plans to support over 13.7 trillion won in investments for key regional mid-sized companies and expand collaborative R&D between regional mid-sized and small businesses, universities, and research institutions.
Furthermore, the government aims to enhance AI transformation in the manufacturing sector, supporting around 350 mid-sized manufacturing companies in their AI transition by 2030.
Minister Kim Jeong-kwan stated, 'Mid-sized companies are the backbone of our economy, connecting the value chains of large and small businesses. The government will lay down the growth ladder to help mid-sized companies grow into anchor firms with independent technological capabilities.'
On the same day, the Ministry of Industry announced the selection of ten new companies, including Wonik Holdings, Natural Way, Humedics, and Saehan Industries, as World Class Plus companies in sectors such as semiconductors, displays, bio, and future vehicles.
* This article has been translated by AI.
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