This study compares small-and-medium-sized business (SMBs)-centric industries and large-corporation-centric industries in terms of production structure, with the objective of identifying and explaining the roles and importance 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 focuses on the 204 industries, ranked from the 51st to the 254th, which 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.
Of the 112 industries subject to the analysis, 51 are definitively focused on large corporations. As this study intends to benefit SMBs, this study could have easily focused on the remaining 61 industries in which SMBs are more active. However, it should be noted that, given the massive scale of the 51 large-corporation-centric industries, keeping the return rate on capital in these industries higher than that in the SMB-centric industries will ultimately compromise the efficiency of resources and assistance provided for SMBs. While more in-depth research on this topic is warranted, this study assumes that SMBs will be more effective than large corporations (i.e., offer greater returns on capital) in large-corporation-centric industries, in part to account for the significant presence of large corporations in SMB-centric industries.
This study fails to define which industries should be fostered in the future. There are certain industries in Korea that are currently marginal, but that are likely to grow more important and influential on the global market in the future, and Korean policymakers should take note of such industries. However, this study is confined to relatively short-term policymaking.
한국제조업의 산업별 생산구조(Production structures of manufacturing industries and the status of small and medium businesses in Korea)
중소기업 우선육성업종선정에 관한 연구
|Series Title; No||연구보고|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Manufacturing
Industry and Technology < Entrepreneurship
|Holding||KDI; KDI School|