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Linkages between large corporations and small and medium enterprises in Korea
Since the 1980s the Korean Government has actively promoted the growth of small and medium enterprises (SMEs) as a complement to larger corporations. One of their policies has been to reserve a number of products to be manufactured by SMEs rather than by large corporations. These products
are components or machinery which are then supplied to the large corporations. This article describes such sub-contracting operations and the mutual benefits which can accrue. It also outlines a successful credit guarantee scheme which benefits SME suppliers recommended by the large corporations.
are components or machinery which are then supplied to the large corporations. This article describes such sub-contracting operations and the mutual benefits which can accrue. It also outlines a successful credit guarantee scheme which benefits SME suppliers recommended by the large corporations.
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