Ministry of Trade Industry and Resources

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held a meeting with representatives of mid-sized enterprises at HANA Micron, a mid-sized enterprise specializing in semiconductor back-end processing, in Asan on October 1, 2026. At the meeting, Minister Kim announced the Third Basic Plan for Promoting the Growth of Mid-Sized Enterprises (2026–2030).

 

The event was organized to present the government’s future policy direction for mid-sized enterprises at an industrial site, with the aim of helping them grow into key players in reinvigorating the Korean economy and leading its industrial ecosystem.
 

The Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises was enacted in 2014 as temporary legislation and made permanent in 2023, and has since supported the development of mid-sized enterprises. Under the Act, the government has set the overall direction and strategies for mid-sized enterprise policy through two previous basic plans and is now announcing the third.

 

Mid-sized enterprises account for just 1.5 percent of all companies in Korea, but account for 15 percent of production, 18 percent of exports and 14 percent of employment. They form the backbone of the Korean economy and serve as its “Middle Power,” linking large enterprises and small and medium-sized enterprises (SMEs). In particular, 85 percent of mid-sized manufacturers are materials, parts and equipment (MPE) companies, supporting Korea’s industrial ecosystem and supply chains.

 

However, the number of companies growing from SMEs into mid-sized enterprises has recently declined, while more mid-sized enterprises are reverting to SME status. Structural barriers also persist: companies lose support and benefits as they grow from SMEs into mid-sized enterprises, resulting in a “support cliff,” while mid-sized enterprises face more regulation as they grow into large enterprises, resulting in a “growth hurdle.”

 

Third Basic Plan for Promoting the Growth of Mid-Sized Enterprises

 

With these challenges in mind, the government plans to pursue four strategies under the vision of “The Middle Power of the Korean Economy at the Center of Dynamic Growth.”

 

(1) Strengthen Core Capabilities: KRW 1 Trillion Deca-core Project to Help Mid-sized Enterprises Grow into Global Super Suppliers

 

MOTIR plans to foster “anchor mid-sized enterprises” that own proprietary technologies and intellectual property (IP). To this end, it will launch the Deca-core Project, a KRW 1 trillion initiative running from 2027 through 2035. Under the project, mid-sized enterprises will work with universities, research institutes and other partners to secure 10 technologies with a substantial competitive edge at the system level, moving beyond individual materials and parts.

 

A planning committee comprising industry representatives and technology and supply chain experts will be formed by the end of this year to identify candidate projects. Support will cover technology development across the core materials, parts, equipment, processes and finished products that make up each system, and extend to commercialization and overseas expansion, including patents, standards, market access and certification.

 

MOTIR also plans to support the independent development of items that mid-sized enterprises need in their operations and that are either subject to supply-chain bottlenecks or heavily dependent on overseas sources. It will identify candidate items based on trade data and industry demand surveys, and support companies in developing core technologies and having their technologies incorporated into global customers’ specifications.

 

(2) Strengthen the Growth Ladder: Rejuvenate Growth from SMEs to Mid-sized and Large Enterprises

 

MOTIR plans to restore the “growth ladder” by reforming the current structure, under which companies receive less support and face more regulation as they grow. It will coordinate R&D, demonstration, production and export support at each stage of growth: prospective mid-sized enterprises, early-stage mid-sized enterprises and leading mid-sized enterprises. For prospective mid-sized enterprises, MOTIR will link SME R&D outcomes to reliability and mass-production assessments, followed by commercialization support. For early-stage mid-sized enterprises, the government will ease the “support cliff” in areas such as financing, R&D and facilities. For leading mid-sized enterprises, it will provide coordinated support for major overseas projects, including tender information, partner matching, bid preparation and guarantees for securing contracts.

 

The ministry also plans to identify and revise regulations that vary by company size, as well as laws and systems that classify businesses only as large enterprises or SMEs. These reforms are intended to create an environment in which companies are not discouraged from growing.

 

MOTIR also plans to allow mid-sized enterprises to retain their status for five years after they first meet the criteria for large enterprises, providing a grace period before they graduate from mid-sized enterprise status. The measure is intended to ease the growing pains mid-sized enterprises face as they transition to large-enterprise status. The ministry plans to amend the Act to introduce the measure.

 

(3) Expand the Base of Regional Mid-sized Enterprises under the 5+3 Initiative: Support at Least KRW 13.7 Trillion in Investment by Regional Mid-sized Enterprises

 

MOTIR plans to develop mid-sized enterprises into “growth engines” for regional economies. To address concentration in the Seoul Capital Area and promote balanced regional growth and development, the ministry will link support for key regional mid-sized enterprises to the growth engines under the Five Mega-Regions and Three Special Self-Governing Provinces (5+3) initiative. It will increase investment incentives and provide policy financing, workforce and infrastructure support. The ministry will also expand collaborative R&D involving regional mid-sized enterprises and SMEs, universities, research institutes and other partners, helping mid-sized enterprises grow into “micro-scale large enterprises” within their regions.

 

(4) Respond to Future Paradigm Shifts: Support AI Transformation at About 350 Mid-sized Manufacturers Serving as Prime Contractors, or 50 Percent of the Total, by 2030

 

MOTIR plans to strengthen its response to industrial paradigm shifts such as AI and carbon neutrality. It will fully roll out Manufacturing AI Transformation (M.AX) for mid-sized enterprises by identifying AI models for use in materials and parts, engineering, enterprise operations, energy and other industrial settings, and expanding their adoption.

 

The ministry will also support mid-sized enterprises in carbon-intensive industries, such as steel and chemicals, in investing in environmentally friendly equipment, as well as safety transformation (SX) at manufacturing sites.
 

Going forward, MOTIR will work with relevant ministries to carry out the detailed measures as planned and continue to incorporate industry feedback throughout implementation.

 

Minister Kim said at the roundtable, “Mid-sized enterprises are the backbone of our economy and its ‘Middle Power,’ connecting the value chains of large enterprises and SMEs. They combine the flexibility and agility of SMEs with the financial and technological capabilities of large enterprises, putting them in a position to bring innovation and dynamism to the Korean economy.” He added, “As the economy as a whole grows when individual companies do, the government will build a growth ladder that enables mid-sized enterprises to become anchor companies with proprietary technologies.”

 

Certificate Award Ceremony for Newly Selected World Class Plus Companies

 

Before the roundtable, Minister Kim presented certificates to 10 companies selected for the 2026 World Class Plus Project and encouraged them to grow into global specialist companies.

The World Class Plus Project is a flagship program to foster mid-sized enterprises. It identifies promising companies with growth potential and strong innovation capabilities and provides support, including technology development, to help them grow into world-class specialist companies. This year, 10 companies, including WONIK Holdings, Naturalway, Humedix and Saehan Industrial, were newly selected across sectors including semiconductors and displays, bio and future mobility. MOTIR plans to support these companies in securing core technologies and growing into globally competitive specialist companies.