Regulatory Framework by the Size of ListedCompanies andCorporateGrowth

This paper examines the regulatory treatment of listed companies by size in the U.S., U.K., France, Germany, and Japan, revealing that these jurisdictions do not implement size-based differential regulations as Korea does. While certain classifications exist based on company size, no country imposes specific regulations solely based on size segmentation. The Korean approach, which primarily uses total assets to define size categories, acts as a barrier to corporate growth, leading SMEs to avoid expansion to escape heavy regulation—a phenomenon termed the “Peter Pan syndrome.” The paper advocates for the gradual elimination of size-based differential regulations under the Korean Commercial Act, aligning with international practices by focusing on general principles for listed companies. Relaxing such regulations is expected to stimulate corporate growth, reduce the burden of overlapping legal and self-regulatory frameworks, and promote greater autonomy in corporate governance. Ultimately, this approach would support free competition and innovation, aiding companies in navigating global market challenges and fostering sustainable growth.