# Small and medium enterprises in South Korea

Small and medium-sized enterprises (SMEs) form the backbone of South Korea’s economy, accounting for 99.9% of all businesses in the country and employing over 80% of the workforce. As of recent estimates, there are more than 7.7 million SMEs in South Korea, employing approximately 18.49 million people, or 81% of the total workforce. In 2021, SMEs generated total revenues of 3,017 trillion KRW, representing a 12.8% increase from the previous year and contributing 46.9% of the nation’s total corporate revenue. Notably, since 2015, the classification criteria for SMEs have shifted from employee count to annual revenue, reflecting their growing significance in the economy.

## Scope of SME

Scope of Small and Medium Enterprises :
| Main Business | Main Business | Code | Small and Medium Enterprises (Average Sales) | Small Enterprise (Average Sales) |
| Manufacturing (6 business types) | Manufacturing of clothing, clothing accessories, and fur products | C14 | KRW 150 billion or less | KRW 12 billion or less |
| Manufacturing (6 business types) | Manufacturing of leather, bags, and shoes | C15 | KRW 150 billion or less | KRW 12 billion or less |
| Manufacturing (6 business types) | Manufacturing of pulp, paper, and paper products | C17 | KRW 150 billion or less | KRW 12 billion or less |
| Manufacturing (6 business types) | Primary metal manufacturing | C24 | KRW 150 billion or less | KRW 8 billion or less |
| Manufacturing (6 business types) | Electrical equipment manufacturing | C28 | KRW 150 billion or less | KRW 8 billion or less |
| Manufacturing (6 business types) | Furniture manufacturing | C32 | KRW 150 billion or less | KRW 8 billion or less |
| Agriculture, forestry, and fisheries | Agriculture, forestry, and fisheries | A | KRW 100 billion or less | KRW 8 billion or less |
| Mining | Mining | B | KRW 100 billion or less | KRW 8 billion or less |
| Manufacturing (12 business types) | Food manufacturing | C10 | KRW 100 billion or less | KRW 12 billion or less |
| Manufacturing (12 business types) | Tobacco manufacturing | C12 | KRW 100 billion or less | KRW 8 billion or less |
| Manufacturing (12 business types) | Textile product manufacturing (excluding clothing manufacturing) | C13 | KRW 100 billion or less | KRW 8 billion or less |
| Manufacturing (12 business types) | Timber and wood product manufacturing (excluding furniture manufacturing) | C16 | KRW 100 billion or less | KRW 8 billion or less |
| Manufacturing (12 business types) | Manufacturing of coke, briquettes, and refined petroleum products | C19 | KRW 100 billion or less | KRW 12 billion or less |
| Manufacturing (12 business types) | Chemicals and chemical product manufacturing (excluding medicine manufacturing) | C20 | KRW 100 billion or less | KRW 12 billion or less |
| Manufacturing (12 business types) | Rubber and plastic product manufacturing | C22 | KRW 100 billion or less | KRW 8 billion or less |
| Manufacturing (12 business types) | Metalwork product manufacturing (excluding machine and furniture manufacturing) | C25 | KRW 100 billion or less | KRW 12 billion or less |
| Manufacturing (12 business types) | Manufacturing of electronic parts, computers, video, audio, and communications equipment | C26 | KRW 100 billion or less | KRW 12 billion or less |
| Manufacturing (12 business types) | Manufacturing of other machines and equipment | C29 | KRW 100 billion or less | KRW 12 billion or less |
| Manufacturing (12 business types) | Automobile and trailer manufacturing | C30 | KRW 100 billion or less | KRW 12 billion or less |
| Manufacturing (12 business types) | Manufacturing of other transportation equipment | C31 | KRW 100 billion or less | KRW 8 billion or less |
| Supply of electricity, gas, steam, and air conditioning | Supply of electricity, gas, steam, and air conditioning | D | KRW 100 billion or less | KRW 12 billion or less |
| Waterworks | Waterworks | E36 | KRW 100 billion or less | KRW 12 billion or less |
| Construction | Construction | F | KRW 100 billion or less | KRW 8 billion or less |
| Wholesale and retail businesses | Wholesale and retail businesses | G | KRW 100 billion or less | KRW 5 billion or less |
| Manufacturing (6 business types) | Beverage manufacturing | C11 | KRW 80 billion or less | KRW 12 billion or less |
| Manufacturing (6 business types) | Printing and recording media duplication | C18 | KRW 80 billion or less | KRW 8 billion or less |
| Manufacturing (6 business types) | Manufacturing of medical materials and pharmaceuticals | C21 | KRW 80 billion or less | KRW 12 billion or less |
| Manufacturing (6 business types) | Manufacturing of nonmetallic mineral products | C23 | KRW 80 billion or less | KRW 12 billion or less |
| Manufacturing (6 business types) | Manufacturing of medical, precision, optics and clocks | C27 | KRW 80 billion or less | KRW 8 billion or less |
| Manufacturing (6 business types) | Manufacturing of other products | C33 | KRW 80 billion or less | KRW 8 billion or less |
| Water, sewage, and waste disposal, raw material recycling (excluding waterworks) | Water, sewage, and waste disposal, raw material recycling (excluding waterworks) | E(excluding E36) | KRW 80 billion or less | KRW 3 billion or less |
| Transportation and warehousing | Transportation and warehousing | H | KRW 80 billion or less | KRW 8 billion or less |
| Information and communications | Information and communications | J | KRW 80 billion or less | KRW 5 billion or less |
| Repair of industrial machinery and equipment | Repair of industrial machinery and equipment | C34 | KRW 60 billion or less | KRW 1 billion or less |
| Professional, scientific, and technical services | Professional, scientific, and technical services | M | KRW 60 billion or less | KRW 3 billion or less |
| Business facility management, business support, and rental services (excluding rental businesses) | Business facility management, business support, and rental services (excluding rental businesses) | N(excluding N76) | KRW 60 billion or less | KRW 3 billion or less |
| Health and social welfare services | Health and social welfare services | Q | KRW 60 billion or less | KRW 1 billion or less |
| Arts, sports and leisure services | Arts, sports and leisure services | R | KRW 60 billion or less | KRW 3 billion or less |
| Repair and other personal services | Repair and other personal services | S | KRW 60 billion or less | KRW 1 billion or less |
| Accommodations and restaurants | Accommodations and restaurants | I | KRW 40 billion or less | KRW 1 billion or less |
| Finance and insurance | Finance and insurance | K | KRW 40 billion or less | KRW 8 billion or less |
| Real estate businesses | Real estate businesses | L | KRW 40 billion or less | KRW 3 billion or less |
| Leasing businesses | Leasing businesses | N76 | KRW 40 billion or less | KRW 3 billion or less |
| Education services | Education services | P | KRW 40 billion or less | KRW 1 billion or less |
| Manufacturing of new seats for automobiles | Manufacturing of new seats for automobiles | C30393 | Average sales less than KRW 150 billion | Average sales less than KRW 12 billion |
| Manufacturing of rail vehicle seats among manufacturers of rail vehicle parts and related devices | Manufacturing of rail vehicle seats among manufacturers of rail vehicle parts and related devices | C31202 | Average sales less than KRW 150 billion | Average sales less than KRW 12 billion |
| Manufacturing of aircraft seats among aircraft part manufacturers | Manufacturing of aircraft seats among aircraft part manufacturers | C31322 | Average sales less than KRW 150 billion | Average sales less than KRW 12 billion |

## List of SMEs in South Korea

| Name (English) | Name (Korea) | Industry | sector | Headquarters | Founded |
| Naeil Shinmun | 내일 신문 | Consumer services | Media | Seoul | 1993 |
| Harrie Inc. | 주시회사 해리 | Telecommunications | Mobile telecommunications | Seoul | 2016 |