In order to reduce the growing inequality between large corporations and small and medium enterprises (SMEs) in Korea, it is important, first and foremost, to expand the channels via which SMEs can enter the market on their own. SMEs are compelled to pay for the price of the high wages that large corporations pay their workers because large corporations dominate the channels of distribution. It is therefore important to foster professional business support services, including those for marketing and market research, while lowering the barriers facing SMEs in seeking entry into media advertising. The reliability of government-provided quality tests should also be strengthened to enable more and more SME brands to enter the market successfully.
Second, the distorted labor market favoring large corporations is in need of correction. Unless the over-protection of regular workers is dismantled and the under-protection of non-regular and self-employed workers is corrected, as demanded by labor activists since the Asian Financial Crisis, the Korean economy would not overcome polarization effectively.
Third, various regulatory measures that assume the superiority of large corporations’ performance should be revisited (not without the analysis of the manufacturing sector’s performance).
Finally, the policy supporting SMEs should outgrow its tendency to cater to individual businesses and focus, instead, on providing club goods or public goods that SMEs in general need. An approach to policy support that simply emphasizes making even distribution offsets competition and competitiveness of SMEs, making it difficult for them to enhance their collective bargaining power in relation to large corporations. it is critical to provide accessible policy support and services for SMEs with competent entrepreneurs. A good example is the quality of working life (QWL) program, increasingly featured at industrial clusters with heavy SME populations that provide various facilities and services intended to improve working conditions for tenant businesses.
대기업과 중소기업 간 양극화에 관한 해석(Large corporations and SMEs’ different takes on polarization)
[세종] : 한국개발연구원
|Series Title; No||KDI Focus / 16|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Macroeconomics
Economy < Economic Conditions
Economy < Economic Administration
|Holding||한국개발연구원; KDI 국제정책대학원|