Even though Korea has accomplished remarkable economic growth during the last two decades, there have been deterrent factors to development of small business industry. During this period, an extra emphasis was placed on the large scale business in terms of capital investment and technology development. Consequently, the economy of Korea has to face the problem of a so-called structural dilemma. This problem seems to be one of the major obstacles to achieve continuous economic growth of the nation. Korea has to restructure its economic system and solve the unfavorable relationship between the small business and large enterprises. Especially many newly established large corporations cause unfavorable trade to accelerate and penetrate small firm's market. ... (이하 생략)

While there are a number of laws specifically designed to protect and promote small-and medium-sized firms, the Monopoly Regulation and Fair Trade Act was enacted to prohibit the abuse of market-dominating positions and excessive concentrations of economic power. Therefore, these two legal approaches complement each other. The present paper reviews these laws from the viewpoint of fair trade policy and offers some suggestions for improving them in line with the changing economic environment of small-and medium-sized firms in Korea. ... (이하 생략)

One of the major concerns in Korea has been the increasing concentration of economic power in the hands of big corporations. They have expanded disproportionately, extending their business even to areas where smaller firms could perform more efficiently. Hence it became invitable for the government to use restrictive measures on unjustified diversification activities by big enterprises. In fact, the government has strengthened the regulations controlling large firms doing business in certain areas. Under these provisions, large firms cannot enter into, specified fields - sheltered areas for small and medium industry -, or, if they are already engaged in them, they cannot expand existing production facilities.
The government intervention can be justified if markets are not competitive. It is generally belived to be desirable to prevent vertical mergers if horizontal market power exists. Without intervention, vertical mergers would result in an undesirable extention of their market power. There are other reasons for employing restrictive measures. Mergers and acquisitions increase the concentration of economic power. ... (이하 생략)

For the past few years, as the economics of most countries in the world have stagnated, it has become increasingly evident from a variety of studies, and from government policy statements towards industrial and technologial development that small firms are more and more being seen as one of the favored vehicles for economic regeneration. Particularly, small and medium-sized firms are claimed to be more than averagely innovative, they are seen to be espedially suitable as an instrument of regional development policy and perhaps above all, they are believed to be the most potent potential generators of new jobs. Incereasingly greater faith is thus being placed in small and medium-sized firms as generators of economic growth, as prime sources of technologicla change, and, through employment generation, as major factors in maintaining social stability. Accordingly this paper attempts to develop some new measures of our government policy based on accumulation data which have ever been researched relating to the above issues, and assess just what role small and medium-sized firms have played in the past and are likely play in the future in Korea. ...(이하 생략)

The successive economic development policy of the government encouraged the activities of small businesses in Korea, and they are showing changes in size and complexity, in another word they are growing rapidly. Facing the new environment, the owner-managers of the small businesses are experiencing managerial difficulties which they never imagined before.
The managerial difficulties which the growing small businesses are encountering could be summarized as follow: (1)Heavy dependency on personalities of the owner-manager instead of organizational practices, (2) Unilateral production orientation disregarding organizational, functional harmony, (3) Top-heavy managerial practices paralizing functional work flow. ... (이하 생략)