The small- and medium-sized business section plan aims to promote the consolidation of small- and medium-sized businesses as the driving force of economic development in the 1990s, as well as the keys to Korea’s industrial development.
Korea’s industrial policy in the 1960s tended to focus on light industry and export, and the fostering of the heavy chemical industry in the 1970, causing the relative devaluation of the status of small and medium businesses. In the 1980s, Korea pushed industrial policy designed to reduce the gap between small and medium businesses and large corporations, export and domestic industries, and urban and rural areas, in an effort to develop small and medium businesses. However, small and medium businesses struggle compared to large corporations in terms of the number of companies and employees, production volume, added value, and investment scale.
Judging from the achievements of the major policies of the fifth Five-Year Plan, the governmental support for small and medium businesses focused on cooperative projects, extension work, joint marketing, and discovery and support for promising small and medium businesses and senior trading companies, and start-up assistance from the second half of the 1980s. However, support for small and medium businesses is insufficient in terms of financial and banking support, as well as regional balance. Externally, the global economy is expected to increase by 3. 3 percent on average annually, and interest rates and currency are likely to be stabilized during the fifth Five-Year Plan period, but raw material prices are forecast to rise beginning in the second half of the 1980s. Internally, the unemployment rate will reach four percent and market opening and competition will expand. Also, investment in technological development will account for 2.5 percent of GNP as in economically advanced nations, and GNP per capita will grow to USD 4,000. Additionally, consumption spending will increase to nine percent, and consumption will be diversified and individualized.
The goals and direction of the section plan for small and medium businesses in the sixth Five-Year Plan include: financial support for small and medium businesses in terms of banking, finance, and taxation, reinforcement of technical leadership, reinforcement for affiliated projects, expansion of support, and support for integration and development.
In order to expand the foundation for small and medium businesses, the government will contribute KRW 1.2 trillion during the Five-Year Plan period in order to expand the basis for small and medium businesses, as well as start-up businesses. Also, technology and competition will be promoted through the expansion of financing, cooperative projects, and expansion of facility areas. For the technological improvement of small and medium businesses, the government will expand investment in technology, solve technological problems in the field, expand the projects affiliated with small and medium businesses in conjunction with large corporations, and systematization from 46 percent to 60 percent in 1991 and manage the business realm protection system for small and medium businesses flexibly. During the plan period, Korea intends to assist industrial cooperation between small and medium businesses and economically advanced nations in order to increase export from small and medium businesses to 30 percent, and promote ways to replace part imports. For the integration of small and medium businesses and reinforcement of union functions, the government will increase voluntary integration in funding, technology, and human resources from the present 42.5 percent to 60 percent, and support the operation of joint facilities and joint marketing for small unions. In addition, Korea will create medical, educational, and cultural support facilities to establish a foundation for regional industrialization, and develop regional small and medium businesses.
With the completion of the sixth Five-Year Plan, small and medium businesses will increase their production from 35.4 percent in the present to 44 percent in 1991, employment from 56.1 percent to 63 percent, and added value from 37.7 percent to 45 percent.
제6차경제사회발전5개년계획-중소기업부문계획; The sixth five-year socio-economic development small- and medium-size businesses section plan 1987~1991
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Entrepreneurship
Government and Law < Public Administration