To boost the international presence of small and medium-sized enterprises (SMEs) and venture companies, South Korea’s Ministry of SMEs and Startups unveiled ambitious measures to foster 3,000 companies to achieve exports of $1 million each by 2027. This initiative was disclosed during a momentous gathering at the Polaris Office in Seoul’s Guro-gu district on the morning of the 8th.
The announcement responds to the dynamic shifts in global trade environments, aiming to empower SMEs and ventures as leading players in the competitive global landscape.
SMEs are contributing significantly to the South Korean economy, with sales 17.2 times and employment 5.1 times higher than the average industry. Despite this, export numbers have remained relatively stagnant over the past decade, hovering around $110 billion annually, with approximately 94,000 companies engaging in exports each year. Challenges such as protectionism and evolving export regulations compound the hurdles faced by these entities.
Comprehensive Strategy: “Measures to Support the Globalization of SMEs and Ventures”
The unveiled strategy, aptly titled “Measures to Support the Globalization of Small and Medium-Sized Enterprises and Venture Companies,” outlines a comprehensive approach encompassing three core perspectives: expansion, connection, and performance creation. Four pivotal strategies underpin this strategy: ‘Go beyond exports to overseas,’ ‘Beyond overseas to the future,’ and ‘One Team Korea.’
Central to the plan is nurturing 1,000 innovative domestic companies into export entities by 2027. This endeavor will focus on identifying and fostering companies with promising products capable of asserting competitiveness in the global market. Additionally, 3,000 companies are earmarked to reach $1 million in exports within the same timeframe.
Fundamental support mechanisms include introducing an ‘export doctor’ system to offer tailored assistance throughout the export process, a scale-up program for rapidly growing export companies, and expanding export support for tech service companies to 15% by 2030.
Minister of SMEs & Startups Oh Young-joo emphasized, “In particular, we establish an export strategy using a group of experts so that technologies and products recognized in the domestic market can be exported, issue performance certificates in English that can be used as references, discover buyers, and dispatch a K-Innovation delegation to go directly to the local market and network.”
Nurturing Domestic Companies for Global Competitiveness
Moreover, the Ministry is gearing up to broaden the scope of support beyond exports, with plans to introduce a voucher exclusively for overseas expansion and tapping into foreign students’ potential through the ‘K-Export Warrior 1,000 Project’.
A scale-up program will also be established for high-growth export companies whose technology and innovation are recognized in the market and whose exports are growing rapidly. Minister Oh affirmed, “Going forward, we will work closely to ensure that it can lead to practical results through close, customized, and flexible support that reflects field demands.”
These policies represent a significant expansion and reorganization of the export support framework for small and medium-sized venture companies. By shifting focus from ‘products’ and ‘exports’ to ‘technology’ and ‘overseas expansion,’ the Ministry aims to address emerging demands such as service and technology exports. Through these reforms, the Ministry aspires to foster 1,000 innovative domestic companies into export entities by 2027 and propel 3,000 companies into achieving exports of $1 million.
Strengthening support for tech service export companies emerged as a priority, considering their exponential growth rates over the past decade. To this end, the Ministry is set to establish a separate track by 2025 to cater to the unique needs of tech service exporters, aiming to expand the proportion of export support for these companies to 15% by 2030.
Minister Oh concluded, “These measures represent our commitment to driving tangible outcomes through collaborative efforts and adaptive support mechanisms. We are dedicated to propelling South Korean SMEs and ventures towards sustainable growth on the global stage.”
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