KITA News and Reports
  • Export Support System Needs to Focus on Fostering Global SMEs
    2017-07-24

    Export Support System Needs to Focus on Fostering Global SMEs

    - Korea’s export support needs to promptly respond to the rapid changes in demand of the industry with the cooperation of government agencies - 

    - KITA and the Korea Small Business Institute jointly hosted a seminar to comprehensively review export support system - 

     

    It appears that in order to nurture global small and medium-sized enterprises that will lead export increase, an overall improvement in the entire export support system is required. The Korea International Trade Association (Chairman, Kim In-ho) and the Korea Small Business Institute (President, Kim Se-jong) jointly held a seminar on the topic of ‘Improvement of Export Support System for Small and Medium-sized Companies’ at Trade Tower, Samseong-dong, on July 20, with more than 100 experts from industry, government, academia, and research organizations.

     

    Kim Jung-kwan, vice chairman of the Korea International Trade Association (KITA), said, "After the five years of export stagnation, Korea's exports have turned the recovery face recently. Korea’s small and medium businesses have contributed to this change. He also stated In order to foster more small and medium-sized companies to lead in creating jobs and innovation, Korea’s export support policies must respond to the rapidly changing demand from the industry in close cooperation with the related government agencies." 

     

    The proportion of the Korean small and medium-sized companies participating in exports significantly grew from 32.1 percent in 2012 to 37.5 percent in 2016. In particular, small and medium-sized enterprises’ exports in new growth industry such as robots and bio-health account for 48.4 percent. The problem is that in spite of the fact that last year, 14 ministries have invested more than 664.2 billion won in 215 projects in export support, the actual demand of the small and medium-sized companies and export support are still mismatched.

     

    Ahn Geun-bae, head of the Trade Policy Support Division at the Korea International Trade Association said The result of a survey on the export companies opinions about the export support system last April shows that the export beginners in Korea generally think that it is difficult to figure out what kind of export support system is appropriate for their companies and that some particular companies who always receive benefits repeatedly enjoy the benefits. Therefore, it is necessary to unify the channels of the export support system and to manage the history of the beneficiary companies." He also insisted that the export support voucher business should be continuously expanded in order to take into consideration the history of the companies, marketing skills, and the characteristics of industries and increase the differentiated export support system considering the features of service industries.

    In response to the rapid changes in the export environment, Mr. Ahn emphasized "In order to cope with the era of the 4th Industrial Revolution, we will present the global value chain guidance of the new industry to the industries and a global R & D support system targeting specific export markets from the development stage is required. In addition, he called for an overall review of the compatibility with the international norms, just in case of unreasonable trade pressures on Korea’s export support system. 

     

     

    Oh Dong-yoon, a professor of Economics Department at the Dong-A University, said, "It is necessary to harmonize industrial policies centering on large companies and corporate policies focusing on small and medium-sized companies. In order to compensate for the weak competitiveness of our industry and the trickle down effect of large enterprises, it is required to take globalization of small and medium-sized businesses as a new growth strategy. Kim Chan-ho, a senior researcher at the Korea Institute of Science and Technology Information (KISTI), pointed out that "The success rate of technology development of Korean small and medium-sized companies is 96 percent, but only 48 percent is successful in the actual commercialization of the technologies." He proposed a market-customized R & D process based on the global market competitiveness evaluation and suggested building a Smart Manufacturing Innovation Center for the overall management and support.

     

    Lee Chang-sung, CEO of Zefiro Corporation, suggested fostering electronic commerce at the national level and nurture one million young people and small businesses as global power sellers. Professor Park Kwang-seo of Konkuk University urged To support start-up funds for trading companies that act as 'bees' in the trade ecosystem and support the gradual growth of small-scale businesses to professional traders."

    It will support the start-up funds for trading firms that act as 'bees' in the trade ecosystem and support the gradual growth of small trading firms as professional traders.

     

     

    The discussion was chaired by Kim Se-jong, head of the Korea Small Business Institute, and the director Noh Geon -ki of the Trade Policy Department at the Ministry of Trade, Industry and Energy, the overseas market manager Noh Yong-seok at the Ministry of SMEs and Startups, and the senior researcher Cho Young-sam at the Korea Institute for Industrial Economics and Trade took part in the discussion as panels and stressed to foster global hidden champions by improving export support system as well as developing innovative capabilities.

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