About MMEs

A new driving force of the Korean economy, Middle Market Enterprises!

As the economic growth paradigm of the world is changing, Middle Market Enterprises (MMEs) are receiving more attention.
MMEs have shown steady growth through high-quality independent technology and become the new driving force for the
Korean Economy. Through high economic prosperity and diversified social contributions, MMEs will open the new future of
harmonious development for Korea.

There are 4,635 Middle Market Enterprises (MMEs).
They take up 0.7% of the total number of enterprises in Korea.
(based on fiscal year 2018)
141 thousand
There are 141 thousand workers employed in MMEs.
They cover 13.8% of the total employment in Korea.
$640 billion
The total revenue of USD 640 billion is created by MME.
This is 15.7% of the total sales of Korea.

Relevant Systems for MMEs Improvements

Extended support for tax deductions on MMEs
1. R&D
Tax deduction on R&D costs for new growth technology
MMEs and large enterprises 20–30%, KOSDAQ listed MMEs 25–40%, SMEs 30–40% (until Dec. 31, 2021)
Adoption of patent deduction system
Supporting intellectual property right litigation
and dispute expenses for MMEs and SMEs
2. Employment
Newly established employment incentive tax deduction
For each addition of a regular worker MMEs KRW 4.5 million, SMEs KRW 7–7.7 million.
For each addition of a young or handicapped worker
SMEs KRW 10–11 million, MMEs KRW 7 million, LEs KRW 3 million (until Dec. 31, 2021)
Special tax provision of the “Naeil Chaeum” deduction
MMEs: 30% reduction on employee income taxes,
SMEs: 50% redcution on employee income taxes.
Reduction amount included in deductible expenses (until Dec. 31, 2021)
Extended eligibility for the Additional Youth Employment Incentive
Extended eligibility includes MMEs as subjects for personnel expense support in cases of youth
employment (until Dec. 31, 2021)
Tackling challenges and stumbling blocks for MMEs Improvements on 66 dichotomous laws, regulations, and systems
Amendment of the Special Act on Promoting the Growth of Middle Market Enterprises and
Strengthening Their Competitiveness
Expanded support for MMEs on technology protection, manpower support, overseas marketing,
sales credit insurance, “Naeil Chaeum” deduction, etc.
Implementation of “The Vision 2280 for MMEs” Fostering 80 trillion won club enterprises with sales over KRW 1 trillion and 500 MMEs with export leaps by 2022,
aiming for R&D budget support on a KRW 2 trillion scale
Implementation of KDB Global Challengers 200 Selecting 200 MMEs and pre-MMEs with superior technology and growth potential
by 2022 to provide exclusive special funding amounting to KRW 2.5 trillion
Rationalization of tax deduction for family business succession Allowing joint succession of MMEs with less than KRW 300 million in sales, easing conditions on maintaining
core business (subdivision·categorization) Rationalization of an additional collection system for asset disposal
(Total amount collection·scale-proportional collection)
Participation of startup MMEs in the competitive product market of SMEs In the case an SME, which has participated in the procurement market for over 3 years,
has grown into a high potential enterprise Allow 3 years for MMEs with less than KRW 200 million in sales
Adjustment in the range of business groups subject to the limitations on mutual investment
(Large Enterprises (LEs))
Upward adjustment of asset baseline from KRW 5 trillion to KRW 10 trillion
Strengthening legal protection for MME subcontractors For MMEs with less than $265 million in sales, provide subcontractor protection subject to the subcontracting payment
Expanding industrial function agents to MMEs Industrial function agents (reservist status) are assigned to MMEs
Legal stipulation of preferential treatment for MMEs in trade insurance Preparing the groundwork for preferential treatment for MMEs (insurance rates, insurance payment dates, etc.)
in accordance with Article 8 Amendment 3 of the Act on Trade Insurance
high potential