콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Industry and Technology Entrepreneurship

Print

Barriers to SME growth in Korea

Related Document
Frame of Image d product quality; Korea’s SMEs accounted for 99 percent of all business establishments, and they hired about 88 percent of domestic workers as a whole. Under this economic environment, therefore, it is pivotal to expand the SME base in the economy in order to spur Korea’s solid and sustainable economic growth. (1) Peter Pan Syndrome This concern raises the debate about what factors contributed to the sluggish growth and faltering
competitiveness of Korean SMEs over the past several years. Indeed, there are two competing claims as to factors that undermine SME growth in Korea; Peter Pan syndromes of Korean SMEs vs. structural barriers to SME growth in the economy. Some blame SMEs’ strong attachment to smallness; this is the so-called the “Peter Pan syndrome” in which firms prefer to stay small than to grow, mainly due to preferred government tax benefits and regulations. Under the current act on “Small and Medium Enterprises”, a firm loses its SME status when it accumulates 300 or more regular workers on its payroll or its annual revenue exceeds 150 billion won on average for three years. As soon as a company grows beyond the SME level, it is deprived of about 160 kinds of benefits to SMEs such as tax credits, deductions and the availability of certain sales channels. Because of this, it is argued that many SMEs use various means in order to maintain their SME status. For example, some SMEs try to split their establishments into two or replace some of their regular workers wi


Full Text
Title Barriers to SME growth in Korea
Similar Titles
Material Type Reports
Author(English)

Shin, Jongwon

Publisher

[Sejong]:Korea Institute for Industrial Economics & Trade

Date 2015-06
Journal Title; Vol./Issue Cover Story:vol. 20(no. 3)
Pages 9
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Industry and Technology < Entrepreneurship
Holding KIET; KDI School