Recent data indicates that the number of mid-sized companies playing a crucial role as the “backbone” of the domestic economy increased by nearly 100 last year. Both the total revenue and operating profit of mid-sized companies saw an increase of around 10% compared to the previous year, and investments also expanded by over 20%, contributing to significant overall growth.
According to the “2022 Basic Statistics for Mid-sized Companies” released by the Ministry of Trade, Industry, and Energy on Dec. 27, the number of domestic midsize companies as of the end of last year increased by 96 compared to the previous year, totaling 5,576.
Coupang, Sinokor Merchant Marine, and 88 other companies have grown from middle-market enterprises to large enterprises, while 217 companies have regressed to small and medium-sized enterprises, and 125 have closed down, totaling 432 companies excluded from middle-market enterprises last year.
On the other hand, a total of 528 companies have transitioned to become middle-market enterprises, including 163 that graduated from small-sized enterprises, 258 designated as public disclosure subjects after mutual caller restrictions, and 107 newly established companies.
Last year, the total revenue of midsize companies reached 959 trillion won (US$739.4 billion), marking a record high with a 12.5% increase compared to the previous year.
Both the manufacturing sector experienced a solid growth of 13.2%, and the non-manufacturing sector also saw a substantial increase of 11.7%. Particularly in the manufacturing sector, industries like electrical equipment showed remarkable growth of 43.5% along with notable increases in biotech and health with 16.1% and textiles with 15.9%.
Especially noteworthy is the increase in midsize companies with revenues exceeding 1 trillion won, rising by 38 from the previous year to a total of 153. Consequently, the proportion of companies with revenues exceeding 1 trillion won increased from 2.1% in 2021 to 2.7% last year.
The proportion of midsize companies with revenues less than 300 billion won decreased from 87.4% to 85.5%.
The operating profit totaled 58 trillion won, marking a 9.0% increase compared to the previous year. The assets amounted to 1,097 trillion won, showing a 6.1% increase from the previous year. Both operating profit and assets reached their all-time highs.
Last year, the total investment amount of mid-sized companies increased by 26.7%, or 8.2 trillion won, compared to the previous year, reaching 38.9 trillion won. Moreover, investment in facilities increased significantly by 32.3%, and research and development (R&D) investment also saw a substantial growth of 11.9%.
The number of employees in midsize companies decreased slightly by 0.4% to 1,587,000 compared to the previous year. While the number of employees in the manufacturing sector increased by 1.6%, the non-manufacturing sector experienced a significant impact, as around 49,000 employees were excluded from the statistics due to Coupang transitioning to a large enterprise.