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SOUTH KOREA MUST BOOST SMES AS FERTILITY DECLINES, OECD SAYS

Report advises streamlining complex government support programs for smaller
firms

A shipyard in Busan, South Korea. Small- and medium-size enterprises have
"considerable untapped potential" beyond supplying conglomerates, an OECD report
said. © Reuters

STEVEN BOROWIEC, Nikkei staff writer
July 12, 2024 12:13 JST



SEJONG, South Korea -- South Korea's export-oriented growth model requires a
"decisive upgrade" that involves narrowing the productivity gap between smaller
companies and the conglomerates that dominate the economy, argues a report
released on Thursday.

The Organisation for Economic Co-operation and Development (OECD), a group of
developed countries, identified South Korea's small- and medium-size enterprises
(SMEs) as key to maintaining economic growth amid challenges such as the
country's declining fertility rate.






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