(FOMEK)
According to Pulse by Maeil Business News Korea,
Middle market companies in South Korea announced plans to invest 120 trillion won ($84 billion) over the next three years, aiming to create 300,000 new jobs, including opportunities for 200,000 young workers. The initiative also seeks to address pressing societal issues such as low birth rates and regional economic disparities.
The announcement came on Monday during the 10th annual Middle Market Enterprise Day ceremony at The Plaza Hotel in Seoul. Federation of Middle Market Enterprises of Korea (FOMEK) Chairman Choi Jin-sik unveiled the “Declaration for Innovative Growth of Middle Market Enterprises” at the event, which brought together over 200 attendees, including government officials, corporate leaders, and industry stakeholders.
Middle market companies represent only 1.3 percent of all businesses in Korea, with 5,576 firms as of 2022. However, they account for 14.4 percent of total sales, 12.8 percent of employment, and 18 percent of exports. The FOMEK’s declaration focused on four key areas: investment, employment, exports, and corporate social responsibility.
Prime Minister Han Duck-soo, who attended the ceremony in his capacity as acting President, emphasized the government’s commitment to supporting middle market firms. “These companies underpin our economy, leading key industries such as semiconductors and materials. The government will reduce their burdens and provide stronger support,” he said. Han also pledged to revive discussions on revising inheritance and gift tax laws to ease succession planning for middle market enterprises.
The proposed tax amendments, which were previously rejected in the National Assembly, include removing the 500 billion won revenue cap for businesses eligible for family business inheritance deductions and increasing the deduction limit from 50 million won to 500 million won.
During the event, 37 individuals received government awards for their contributions to the country’s economic and industrial development. Among the honorees, Daechang Chairman Jo Si-young was awarded the Gold Tower Order of Industrial Service Merit.
By Lee Yun-sik and Minu Kim
Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.
Source: Pulse by Maeil Business News Korea (December 17, 2024)