This study compares small-and-medium-business (SMB)-centric industries and large-corporation-centric industries in terms of production structure, with the objective of defining and explaining the respective roles and weight of SMBs in the Korean manufacturing sector. The purpose of this document is to help policymakers identify industries that need to be developed in order to promote overall economic growth.
This study is based on the Bank of Korea’s inter-industry relations table, concerning 392 industries from 1973 to 1978. More specifically, this study concerns the 204 industries from the 51st to the 254th listed on the table that belong to the manufacturing sector. This study divides the 204 industries between SMB-centric industries and large-corporation-centric industries and analyzes the production structure characteristics of each group. The limits on the pool of data also limit the implications and applicability of this study. Nevertheless, the survey revealed that large corporations are involved in almost all industries within the manufacturing sector.
Korean industrial policy has been much more favorable to large corporations, but falling short in supporting and growing SMBs. The results of this policy have been mixed so far. First, the fact that high degrees of industrial relations correlate to high degrees of job-inducing effects and the high degrees of the intermediary input-inducing effect of industries attest to the efficiency and rationality of the current industrial policy. However, large-corporation-centric industries have fared not particularly better than SMB-centric industries in terms of increasing exports or substituting imports. The limited nature of large corporations’ contributions to the overall national economy also denotes the wastefulness of the policy.
The fact that there is not much difference between the production structures of the SMB-centric and large-corporation-centric industries also indicates a need to redefine the criteria that distinguish one from the other. The Korean government needs to adapt its policy on fostering SMBs and provide more effective support for SMBs, which the Korean economy requires.
한국제조업의 산업별 생산구조와 중소기업의 지원(Production structures of manufacturing industries and the status of small and medium businesses in Korea)
|Journal Title; Vol./Issue||한국개발연구:vol. 4(no. 1)|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < General
Industry and Technology < Entrepreneurship
|Holding||KDI; KDI School|