Korea Mid-Size Enterprise Association Proposes 81 Legislative Improvements to Eight National Assembly Committees

The Korea Mid-Size Enterprise Association has proposed 81 legislative improvement tasks at once, spanning eight standing committees of the National Assembly.

The association announced on the 30th that it had delivered 81 legislative improvement tasks to eight standing committees, including the National Assembly's Trade, Industry and Energy, and SMEs and Startups Committee. Mid-size enterprises refer to companies at a growth stage just below the threshold of becoming large conglomerates in terms of revenue and other metrics. As these companies repeatedly hit walls of regulation and institutional barriers and see their growth stall—a phenomenon known as the 'collapse of the growth ladder'—the core logic behind this proposal is that laws and institutions must be overhauled.

Why 81 Tasks?

The association divided its tasks among the standing committees because the relevant laws are scattered across multiple government ministries. Since a single business activity—such as taxation, employment, industry, or fair trade—can be entangled in numerous laws, the association judged that revising a single bill would have limited effect. By making simultaneous proposals to all eight standing committees, the association appears to be pursuing a strategy of broadening discussions on mid-size enterprise support throughout the National Assembly.

In this proposal, the association presented strengthening the corporate growth ladder as its central direction. When support programs are cut off and regulations tighten at every stage of transition—from small business to mid-size enterprise, and from mid-size to large enterprise—a paradox arises in which it is actually more advantageous for companies to give up on growth. Since cases of companies deliberately slowing growth due to revenue caps or support exclusion criteria have been repeatedly pointed out, the backbone of the 81 tasks appears to be a call to refine the legal framework for stage-by-stage growth support.

What the Legislative Tasks Contain and Their Impact

The proposed tasks are centered on regulatory relief and improvements to support programs. Mid-size enterprises, unlike large conglomerates, lack the protection of vertical business networks, and unlike small businesses, they are often excluded from various government support programs—a 'sandwich' position. The business community has long argued that this structure must be corrected through legislation, and this proposal represents that argument translated into a concrete list of bill revisions.

In terms of impact, it is unlikely that all 81 tasks will be reflected in legislation. However, with both ruling and opposition parties treating corporate competitiveness as a pillar of national growth strategy, regulatory-relief-type tasks are expected to gain priority and move toward passage. In particular, tasks under the jurisdiction of the Trade, Industry and Energy, and SMEs Committee are likely to be handled relatively quickly during hearings and review.

Political Calculations and the Legislative Process Ahead

For these proposals to become actual legislation, they must pass through a series of steps: introduction in the National Assembly, review by standing committees, systematic and wording review by the Legislation and Judiciary Committee, and a vote in the plenary session. It will be difficult for all 81 tasks, spread across committees, to move at once; typically, they would be incorporated in a piecemeal fashion into individual laws through government or lawmaker-sponsored bills.

Political reactions have yet to crystallize. Positions favorable to easing corporate regulations coexist with arguments for keeping large conglomerates from entering, so the difficulty of individual tasks will vary widely. Nevertheless, given the status of mid-size enterprises as creators of jobs and investment, a significant portion of the candidate tasks is expected to emerge into legislative discussion during audits and budget reviews in the regular National Assembly session.

Rebuilding the Growth Ladder Through Law

Management scholar Ken Blanchard once said that leadership means investing in the growth of others, not oneself. This proposal applies that maxim at the national level. The argument is that the government and the National Assembly must create institutions that continuously invest in companies as they grow, rather than withdrawing support at each stage.

More important than the number 81 itself is the pace that follows. If the proposal gathers dust in a drawer, the institutional uncertainty facing mid-size enterprises will persist. Conversely, if key tasks are turned into bills early on, a visible signal could be sent to mid-size enterprises regarding facility investment and hiring. How much piecemeal legislation accumulates during the regular session is expected to be the yardstick by which the success or failure of this proposal is measured.