Junggyeonryeon Fully Supports Business Transformation of Mid-sized Companies

Recruitment of Companies for Preliminary Consulting in the 2020 Mid-sized Enterprise Business Transformation Support Project

[Asia Economy Reporter Kim Cheol-hyun] The Korea Federation of Medium-sized Enterprises (hereinafter referred to as KFME) is actively supporting business transformation for medium-sized enterprises to create new growth engines. KFME announced that from the 6th, it will begin accepting applications for participation in the 'Pre-consulting for Medium-sized Enterprise Business Transformation Support Project.'

The pre-consulting for the medium-sized enterprise business transformation support project is a program that provides diagnosis and analysis of business transformation plans by professional institutions and effective alternatives to help medium-sized enterprises successfully carry out business transformation. It thoroughly analyzes new business model planning, new market entry strategy establishment, and business structure reorganization to assist medium-sized enterprises wishing to enter new industries or restructure their businesses in establishing concrete business transformation strategies.

The eligible participants are unlisted medium-sized enterprises in the manufacturing or service sectors with an average sales revenue of less than 300 billion KRW over three years, and medium-sized enterprises that have been continuously operating for more than three years. With the enactment of the 'Amendment to the Medium-sized Enterprise Special Act' last July, which expanded the business transformation special provisions previously applied only to small and medium enterprises to medium-sized enterprises, unlisted medium-sized enterprises with an average sales revenue of less than 300 billion KRW over three years are now subject to significantly relaxed related procedures and requirements when exchanging stocks, merging, or transferring business for business transformation. As of the 2018 fiscal year, unlisted medium-sized enterprises with an average sales revenue of less than 300 billion KRW over three years accounted for 47.2% (2,192 companies) of all medium-sized enterprises (4,635 companies).

The consulting will be conducted over approximately three months, and the government will fully support up to 15 million KRW per company. The application deadline is November 30. Applications can be submitted via email or through the KFME website. KFME explained that to uphold the purpose of the program, which is to revitalize the entire industry through the successful business transformation of medium-sized enterprises, participating companies must apply for approval of their business transformation plans unless there is a legitimate reason not to.

Park Jong-won, Head of the Business Division at KFME, emphasized, "Many medium-sized enterprises facing the challenges of the 4th Industrial Revolution are preparing for a second leap forward by entering new businesses based on the high level of competitiveness accumulated in their existing business sectors," adding, "We will do our best to solidify the substance of the program through communication with participating companies and to establish a support system that can provide practical help for successful business transformation."