Strengthening Government Support to Expand SME Joint Brand 'BrandK'

Expanding Overseas Markets with Customized Local Strategies for Online and Offline Distribution Channels

[Asia Economy Reporter Kim Cheol-hyun] The selection process for products under the national joint brand 'Brand K' for promising small and medium-sized enterprises (SMEs) is being reorganized, and various support measures such as funding and export support for selected products will be intensified.

The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 26th at the Government Complex Seoul, during the 'Government Policy Coordination Meeting' chaired by the Prime Minister, that it will pool the capabilities of related ministries to support SME exports through the expansion of Brand K and unveiled the 'Brand K Expansion Strategy.' Since its launch in Thailand last September, sales of the first batch of Brand K products have significantly increased, and numerous export contracts have been signed, demonstrating the effect of the national joint brand on boosting SME exports, according to the assessment.

Key Products and Achievements of BrandK

This measure was prepared to clarify the direction of the Brand K joint brand for SMEs, developed to support SMEs whose brand competitiveness is weaker compared to large corporations, and to enhance support for selected products, thereby raising Brand K's domestic and international recognition and expanding participation of promising companies in Brand K.

According to this measure, the government plans to support Brand K by associating it with the Korean Wave image through large-scale Hallyu events such as KCON and major national events, helping Brand K establish itself as a representative brand of Korea. In particular, leveraging the global attention on 'K-Quarantine' amid the COVID-19 pandemic, the plan includes incorporating products in the bio and medical fields and linking support measures with export-related organizations such as the Korea International Trade Association and the Small and Medium Business Corporation to promote product premiumization. Furthermore, to secure Brand K's market competitiveness, a public-private joint consultative body involving private experts and companies centered on the Korea International Trade Association will be operated to strengthen overall quality management of products and brands and to handle post-management issues such as intellectual property disputes.

To this end, the Ministry has been conducting expert evaluations and final product reviews since December last year for candidate companies selected through recommendations and open recruitment, and is preparing for the final selection of the second batch of Brand K products in April. Minister Park Young-sun stated, "In the current situation where the Hallyu wave continues with BTS and Parasite, it is necessary to guarantee the excellence of Korean SME products and actively support their global expansion through a national image-based joint brand," and added, "Through Brand K, we will imbue Korean SME products with the Hallyu image of innovation, creativity, and sophistication, and focus related policies to help Korean SMEs establish themselves in the global market based on this."