S. Korean middle market enterprise federation proposes re-categorization of enterprises based on detailed data

By Kim Joo-heon Posted : March 20, 2024, 17:35 Updated : March 20, 2024, 17:35
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[Getty Images Bank]

SEOUL, March 20 (AJU PRESS) -- South Korea's middle market enterprise federation has stressed the importance of re-categorizing enterprises based on detailed data, rather than solely relying on the number of employees or sales. The association criticized the current national enterprise-related statistics, which classify companies based only on the number of regular employees or sales volume.

According to the Federation of Middle Market Enterprises of Korea (FOMEK), each industry has different criteria for determining whether a company is small or middle-sized. While annual sales of 150 billion won ($111 million) over three years are required for a company to be included in the category of middle-market industry for machinery manufacturing firms, an average annual sales of 40 billion won over three years are required for a firm to be categorized in the service sector category.  

"Merely looking at sales figures, without considering which industry they belong to, makes it difficult to classify companies accurately," FOMEK's public relations manager Lee Dong-yun said. The federation emphasized that enterprise-specific data is crucial for setting up support policies for companies, especially in the era of the Fourth Industrial Revolution.

"By collecting insights from the field, we will consistently cooperate with Statistics Korea to upgrade the effectiveness of the national statistics system for companies by reflecting precise realities rather than abstract figures," said FOMEK Vice Chairman Lee Ho-joon. The statement was made during a discussion meeting with Statistics Korea during a discussion meeting held on Wednesday.

"We will take into account the perspectives of more companies and economic organizations on-site, engage in discussions on collaboration, and support the advancement of exports and economic progress through statistical analysis and data," said Lee Hyoung-il, the head of Statistics Korea.
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