Gov`t to Nurture `Established Mid-size Companies`

The official scope of an established mid-size company will be expanded, with the government to announce next month a plan to nurture such entities through incentives such as tax breaks and aid in research and development and financing.

The Strategy and Finance Ministry and the Knowledge Economy Ministry yesterday said the plan will likely include a cut in the minimum tax rate for established mid-size companies. A credit guarantee over a certain period will go to such companies after they become more than a small and medium-size corporation.

After bilateral discussion, the two ministries will finalize the plan at the monthly national meeting on economic strategy chaired by the president as early as late February.

A ranking official said, “When companies grow to established mid-size companies from small and medium enterprises, they are no longer eligible for government assistance and even go out of business due to intense competition with conglomerates.”

“Such a practice is counterproductive in industrial development and job creation, and we have come up with a measure to nurture established mid-size companies.”

To provide financial assistance, established mid-size companies will be allowed to continue transactions with state-run banks. Credit guarantees to assist enterprises with low credit ratings are also being considered.

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