On September 15, 2024, the Ministry of Small and Medium Venture Enterprises decided to reclassify "Metal and Plastic Manufacturing" as a production‑compatible industry. Accordingly, the new effective period runs until September 15, 2031, while maintaining the same restriction on large enterprises entering the sector for five years and continuing the policy that limits their business expansion.
Under the new criteria, the threshold of permissible output for "Metal and Plastic Manufacturing" has been relaxed in light of its expanding market size. Previously, up to 110 % of the maximum annual output was allowed; under this measure, up to 120 % is now permitted based on a ten‑year reference period. This provision applies only to large enterprises, thereby protecting small and medium firms while reflecting overall market growth trends.
In particular, products for export and OEM (original equipment manufacturer) items made with domestic or imported raw materials are exempt from the restrictions that applied before; they may be produced and sold without limitation. This is intended to provide a conducive environment for small and medium enterprises operating in a low‑barrier, high‑productivity sector.
The same measure follows the principle established by the 2018 designation of “production‑compatible industries.” "Metal and Plastic Manufacturing" was first designated as such an industry in 2021; this re‑designation is the result of careful deliberation. The Ministry’s Office for Small Enterprise Cooperation stated that it had considered both the protective effect for small and medium firms during the original period and the market growth trend, and pledged to manage and monitor implementation so that no disruption occurs on the ground level and that small and medium enterprises as well as large and mid‑size firms can actually realize the benefits of this policy.