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Korean Economy has recorded rapid growth rates for the past twenty years. But, in the course of industrialization, the following problems have been raised.
First, the government's dirve to lead the economy and its reliance on foreign capital have resulted in the lack of adaptive capability of the economy to the changing domestic and international environments.
Second, while the heavy industry sector has received substantial amounts of public subsidy and financing, the Medium and Small Business (M.S.B.) sector has been relatively neglected in terms of financing, tax incentives and technical assistances.
It has been indicated that the role of M.S.B. sector will be critical to furthering the economic growth in the 1980s. The M.S.B. in Korea has the characteristics that its employment creation effect, or the ratio of labor to capital, is higher than that of large enterprises. In the respect of degree of dependence on import for raw material, the former also has advantage over the latter. ... (이하 생략)

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In the overall planning, ution and control of export marketing, the differences between export marketing of small business and that of big business are evident at both strategic and tactical levels. However export marketing of small business is often seriously diluted by uncritical adherence to the belief that the principles of management are applicable in companies of every size. It is rare for a firm to enjoy at the same time the advantages of both small business and big business.
Therefore it is intent of this thesis to find advantageous areas for small business in Choong Nam as well as efficient adaptation of strategies and tactics in comparison to big business.

This paper attempts to derive what strategic tasks would be necessary in order to foster the small businesses in Kyungbook area, which have been lagged far behind since the early 1960s, under the Governments' economic growth policy, compared to other sectors of the economy, and to review what development policies are to be needed in the future to efficiently accompolish those tasks.

The number of small business in Busan Area at the end of 1980 was 4007 out of total manufacturing business of 4,152. The percentage of small business to the totla is 96.5%. The total employees of the small business at the end of 1980 was 137 thousands persons of which percentage is 44.1% to the total employees of manufacturing business. But the products of small business of Busan Area in manufacturing industries in 1980 was 1,708 billion won which is only 42.5% of total amount of production of the area.
The major fields of small business industries in the sense of number of firms in Busan were metal and machinery (32.8%), textile and leather (19.0%), and chemistry and plastic (17.6%)
According to the report of the survey performed by Busan Chamber of Commerce at the end of 1977, small business of Busan have shown following three problems; (1) shortage of running capital (15.1%), (2) the delays of payments for their commodities or services supplied in credit (13.6%), (3) severe competition among the businesses in same field (11.4%).

A purpose of this study to draw out and investigate the problems to the fostering program of the small and medium businesses in Honam area by the fifth five-year economic and social development plan ahead, and then is to present the way of the effective policy for the successive performance of the small and medium businesses during the fifth five-year plan. Main points of this study are as follows: