□ Why are low-quality jobs created at SMEs? It is because the large companies hand over labor-intensive production to lower-level companies, causing exponential creation of new businesses amongst the lowest-paying bracket.

- Large firms have transferred a portion of their production process to lower-level companies in order to boost their price competitiveness.

- Because the jobs created at SMEs today are found in low-level companies, such as those with 5-19 employees, the quality of employment of SMEs as a whole is inevitably low.

- The rate of increase in per capita value-added for large firms was made possible by a steep decline in the rate of increase for employment.

- After the Asian Financial Crisis, SMEs began to catch up with large firms in terms of the rate of increase in R&D investment.

- The fact that Korea has excessive number of companies in comparison with other countries implies that Korean companies are generally smaller in scale than those in other countries.

- SMEs that are specialized in terms of key capabilities should establish a new group in which labor is divided on an equal footing.

- Lower-tier companies should be able to form business relationships with multiple high-level companies.

- The most urgent task is eliminating unfair subcontracting transactions.

- Price calculation method must be developed that reflects intangible creative and innovative activity.

- Innovative SMEs must be able to establish collaborative relationships with service firms without going through large businesses.

Ⅰ. The Expected Role of SMEs

Ⅱ. Causes of Declining Job Quality at Manufacturing SMEs

Ⅲ. Vitalization of Technology Development in SMEs

Ⅳ. Identifying a New Corporate Division of Labor

Ⅴ. Policy Suggestion