1. Korean SME Characteristics & Proposed Developments for Data Linking 2003. 9. 17. Presenter : Sunghee Han

2. Contents I. Introduction 1. SME definition 2. Business frame II. SME statistics III. Possible improvement IV. Future direction

3. Contents I. Introduction II. SME statistics III. Possible improvement IV. Future direction 1. SME definition 2. Business frame

4. I. SME definition I. SME definition  Regulatory definition - Quantitative criteria : employment size, equity capital or turnover - Quantitative criteria : employment size, equity capital or turnover - Qualitative criterion : independence - Qualitative criterion : independence ISIC Rev.3 Criteria D Full time worker <300 or equity capital <=8 billion Won C, F Full time worker < 300 or equity capital <= 3 billion Won G51331 Full time worker < 100 or turnover <= 10 billion Won SME definitions by industry SME definitions by industry Small enterprise : employment size (full time worker < 50 or 10), and independenceSmall enterprise : employment size (full time worker < 50 or 10), and independence

5. I. SME definition I. SME definition  Practical definition - Quantitative criterion : employment size - Quantitative criterion : employment size

6.  Basic source : statistical data - Name of survey : census of establishments - Name of survey : census of establishments - Responsible institution : KNSO - Responsible institution : KNSO - Statistical units : establishment - Statistical units : establishment - Scope and coverage : all geographically identified workplace with at least one fulltime worker. - Scope and coverage : all geographically identified workplace with at least one fulltime worker. Except : sole proprietorship of agriculture or fishery, activity of military authorities, foreign diplomatic institution, sales with no fixed place and private households Except : sole proprietorship of agriculture or fishery, activity of military authorities, foreign diplomatic institution, sales with no fixed place and private households 2. Business frame 2. Business frame

7. - Periodicity : annual - Periodicity : annual - Variables : legal type, type of establishment, industrial classification, employment, turnover, and so on - Variables : legal type, type of establishment, industrial classification, employment, turnover, and so on 2. Business frame 2. Business frame Total establishments Single unit Enterprise Multi unit enterprise establishmentsheadquarters 100.0%96.5%2.9%0.6% Source : Census on establishment (2000), KNSO Rate of single unit enterprises Rate of single unit enterprises

8. 2. Business frame 2. Business frame Source : Census on establishment (2000), KNSO ISIC Rev.3 Employment size class Total1~299300 + Total (A~O) 3,013(100%) 3,011(99.3%) 2.(196) (0.07%) Industry (C~F) 383(100%) 382(99.93%) 0.(954) (0.27%) Service (G~O) 2,627(100%) 2,626(99.96%) 1.(242) (0.04%) Unit : 1,000 each Number of establishments by industry Number of establishments by industry

9. Contents II. SME statistics I. Introduction III. Possible improvement IV. Future direction 1. SME definition 2. Business frame

10. Ⅱ. SME statistics Ⅱ. SME statistics 1. Core statistics (Structural statistics) ISIC Rev.3SourceStatistical unitCoverage C, D, EIndustry censusestablishmentAll units Q, G, H, I, J,K, M, N, O Census on wholesale & retail trade and service industry establishmentAll units Responsible institution : KNSO Responsible institution : KNSO Data Sources : census(5 yearly), annual survey Data Sources : census(5 yearly), annual survey Economic variables : turnover, value added, employment, and so on Economic variables : turnover, value added, employment, and so on Data sources (census) Data sources (census)

11. Ⅱ. SME statistics Ⅱ. SME statistics ISIC Rev.3SourceStatistical unitCoverage C, D Mining, manufactur ing survey Establishment5 or more workers F Construction work survey K.A.UAll enterprises G,H,K,N,O Wholesales, retail trade & service industry survey EstablishmentSample I(60~63) Transportation survey K.A.USample I.642, O.9213 Communication survey EnterpriseAll enterprises Data sources (annual survey) Data sources (annual survey)

12. Ⅱ. SME statistics Ⅱ. SME statistics Mining & manufacturing(2000) Mining & manufacturing(2000) 5~49(small)5~299(SMEs)Total(5+) (%) Establishment72,439(73.3)97,468(98.7)98,784 Employment1,185,622(44.4)1,835,479(68.7)2,670643 Turnover57,604(10.3)232,184(41.4)561,105 (Unit : person, billion Won)

13. Ⅱ. SME statistics Ⅱ. SME statistics 1~49(small)1~299(SMEs)Total(1+) (%) Enterprise53,070(89.7)58,830(99.4)59,186 Employment580,760(40.8)1,127,338(79.2)1,422,618 Turnover30,099(28.6)65,055(61.8)105,349 (Unit : person, billion Won) Construction(2000) Construction(2000)

14. Ⅱ. SME statistics Ⅱ. SME statistics 1~1920 +Total(1+) (%) Establishment979,820(99.2)7,553(0.8)987,373 Employment2,364,790(88.8)297,247(11.2)2,662,037 Turnover294,331(71.2)118,773(28.8)413,104 (Unit : person, billion Won) Wholesale & retail trade(2000) Wholesale & retail trade(2000)

15. Ⅱ. SME statistics Ⅱ. SME statistics 1~1920 +Total(1+) (%) Establishment606,129(99.7)1,589 (0.3)607,718 Employment1,464,798(94.1)91,187 (5.9)1,555,985 Turnover36,373(88.5)4,717(11.5)41,090 ( Unit : person, billion Won) Hotel & restaurant(2000) Hotel & restaurant(2000)

16. Ⅱ. SME statistics Ⅱ. SME statistics 2. Specific statistics Data sources Statistical data on specific theme Data sources Statistical data on specific theme Theme Obstacles to management, wages, prospect of business and so on Theme Obstacles to management, wages, prospect of business and so on Responsible institution Small and Medium Business Administration(SMBA) Responsible institution Small and Medium Business Administration(SMBA)

17. Ⅱ. SME statistics Ⅱ. SME statistics Title of survey (frequency) Theme and variables Detail status (annual) Sales(export, OEM product, payment term, due of bill) Management indicator(profitability, productivity) Labor forces (annual) Employment status, shortage of employee Wages (annual) Average wages per hour by work type SME specific statistics (1) SME specific statistics (1)

18. Ⅱ. SME statistics Ⅱ. SME statistics Title of survey (frequency) Theme and variables Trend (monthly) Production index Prospect of business (quarterly) Business Survey Index(BSI) Equipment investment (biannual) Amount of equipment investment by kind of asset R&D investment (biannual) Financing source for investment SME specific statistics (2) SME specific statistics (2)

19. Contents III. Possible improvement I. Introduction II. SME statistics IV. Future direction 1. SME definition 2. Business frame

20. + Ⅲ. Possible improvement Ⅲ. Possible improvement 1. Construction of business frame serving as Enterprise population Current business survey frame ( Census on establishments, KNSO ) Supplementary data ( Business trading place register, NTS )

21. Ⅲ. Possible improvement Ⅲ. Possible improvement Census on establishmentsBusiness trading place register Unit Establishment which operate all economic activity Establishment which goods and services are traded Covering All sector, except - Agriculture & fishery - Activity of military authorities - Extra territorial organization - Sales with no fixed place - Private household All sector, except - Public administration - Sole proprietorship of agriculture and fishery Comparing Census on establishments with Business trading register Comparing Census on establishments with Business trading register

22. Ⅲ. Possible improvement Ⅲ. Possible improvement Census on establishmentsBusiness trading place register I.D : Changed at every survey (permanent as from 2001 onwards) I.D : Permanent Korean Standard Classification code (comparable with ISIC Rev.3 at the 4- digit level) Business Classification code (4-digit of KSIC + specific code for taxation(2 digit) ) Comparing Census on establishments with Business trading register Census on establishmentsBusiness trading place register Business trading place register number I.D number, industrial classification code Common item

23. Ⅲ. Possible improvement Ⅲ. Possible improvement 2. Strategy for consolidating establishments to enterprise  Sole Proprietorship  Sole Proprietorship treated as single unit enterprise treated as single unit enterprise  Legal entity  Legal entity grouped by legal entity I.D grouped by legal entity I.D  Government authorities  Government authorities gr ouped by government organization law & data gr ouped by government organization law & data

24. Contents Ⅳ. Future direction Ⅰ. Introduction Ⅱ. SME statistics Ⅲ. Possible improvement 1. SME definition 2. Business register

25. Ⅳ. Future direction Ⅳ. Future direction ⅺ Conclusion  A complete business frame to function as an integrated statistical system, which would be a consistent and nationwide repository for different statistical data in order to :  A complete business frame to function as an integrated statistical system, which would be a consistent and nationwide repository for different statistical data in order to : - facilitate data exchange - facilitate data exchange - avoid redundancy - avoid redundancy - ensure common procedures for data collection - ensure common procedures for data collection

26. Ⅳ. Future direction Ⅳ. Future direction  Integrating business survey frame with business surveys  Integrating business survey frame with business surveys  Standardizing ID number in all business surveys( by using census ID number )  Standardizing ID number in all business surveys( by using census ID number )  Standardizing economic variable code in all business surveys  Standardizing economic variable code in all business surveys

27. Ⅳ. Future direction Ⅳ. Future direction Integrated DB system DB on census of establishments DB on mining & manufacturing survey DB on frame of current mining & manufacturing survey DB on wholesale & retail trade survey DB on service survey DB on other surveys DB on administrative data ( Business registration) - Social security data DB on construction work survey DB on transportation survey Enterprise Group DB Establishment DB Kind of activity unit DB Enterprise DB Business frames

28. Thank you very much for your attention !!!