The Strength of Daegu's Star Companies... Dominating the Ministry of SMEs' Support 'Strong Small Business Development Project'

Ministry of SMEs selects 26 'Regional Star Companies' and 'Global Small Giants'
Daegu accounts for 21 companies, 81% of total... Dominates Star Companies category
5 companies advance from Regional Star Companies to 'Global Small Giants'

Regional Star Company Development Project Ladder.

[Asia Economy Yeongnam Reporting Headquarters, Reporter Park Dong-wook] Twenty-one star companies in the Daegu region have been newly selected as target companies for the Ministry of SMEs and Startups' 'Regional Star Company Development Project' (15 companies) and 'Global Small Giant Company Development Project' (6 companies). Among the 26 companies nationwide selected by the Ministry, Daegu companies account for 81%, demonstrating the remarkable development of star companies in the Daegu region.

According to Daegu City on the 9th, the 'Regional Star Company Development Project' is a project expanded nationwide in 2018 by benchmarking Daegu City's star company development project. The goal is to nurture 1,000 excellent small and medium enterprises with high growth potential that grow alongside local young talent by 2022, and among them, to develop 200 into global small giant companies.

The Ministry of SMEs and Startups has been implementing a growth ladder policy from 'Regional Star Companies' to 'Global Small Giant Companies,' and then to 'World Class 300.'

The 'Global Small Giant Company Development Project,' one step above 'Regional Star Companies,' is the Ministry's representative project to nurture promising small and medium enterprises into export-leading companies with exports exceeding 10 million USD. Since 2011, 200 companies have been discovered annually and supported intensively with overseas marketing to develop them into 'World Class 300' companies.

Especially this year, despite the difficult situation for companies due to COVID-19 and other factors, 22 companies applied for the Regional Star Company project and 17 for the Global Small Giant Company project nationwide. After a three-stage evaluation (eligibility screening, on-site evaluation, presentation evaluation), 15 companies were finally selected as Regional Star Companies and 11 as Global Small Giant Companies. The support targets for Regional Star Companies were all filled by companies from the Daegu region.

The average sales of the 15 selected Regional Star Companies is 16.5 billion KRW. Employment is 44 people, with a 3-year compound annual growth rate (CAGR) of 12.7% in sales and 9.1% in employment. The 11 Global Small Giant Companies have average sales of 31.6 billion KRW, exports of 13.1 billion KRW, and employment of 102 people. Their 3-year CAGR is 6.8% in sales, 20.8% in exports, and 1.7% in employment.

Since the pilot implementation of the Regional Star Company Development Project in 2018, five star companies in Daegu have leapt to Global Small Giant status within two years: ▲ SLC Co., Ltd. (cosmetics manufacturing) ▲ Youngpoong Agricultural Corporation Co., Ltd. (K-Food manufacturing) ▲ Nakyeong Co., Ltd. (blind manufacturing) ▲ Shinpung Textile Co., Ltd. (functional textile manufacturing) ▲ Micro N X Co., Ltd. (dental medical device manufacturing).

The companies newly selected in 2020 have laid the foundation to grow into global companies by receiving various supports from the central government and Daegu City, including consulting for company-specific growth strategies, R&D planning support, customized commercialization support, and capacity-building education.

Lee Seung-ho, Deputy Mayor for Economic Affairs of Daegu City, stated, "We will spare no systematic support so that companies selected as Regional Star Companies and Global Small Giant Companies can inject vitality into the local economy and grow into mid-sized companies leading innovative growth despite difficult circumstances."

Meanwhile, the certificate awarding ceremony for this year's selected Global Small Giant Companies will be held on the 16th at the Daegu-Gyeongbuk Regional Small and Medium Venture Business Administration. The awarding ceremony for Daegu Regional Star Companies is scheduled for early July.

◆ List of companies selected by the Ministry of SMEs and Startups for 'Regional Star Company Development Project' and 'Global Small Giant Company Development Project'

▲ 'Regional Star Company Development Project' 15 companies (all selected from Daegu region)

※ Parentheses indicate representative name, business description, and 2019 sales.

△ Daekwang Sintered Metal (Park Byung-gon · Automotive sintered products · 29.873 billion KRW) △ Shinseong Chemtech (Kim Jae-yoon · Automotive electronic vibration-proof rubber products · 24.622 billion KRW) △ Nano IT (Park Sang-soo · Integrated messaging system · 18.722 billion KRW) △ DK (Lee Sang-won · Solar power generation system · 12.249 billion KRW) △ Moonchang (Moon Seong-ho · Stainless steel water tanks · 13.925 billion KRW) △ Solji (Kim Tae-heon · Industrial filters · 5.218 billion KRW) △ AL Tech (Jo Seong-su · Solar power/intelligent traffic safety system · 12.581 billion KRW) △ Okcheondang (Koo Sung-min · Korean medicine products · 15.426 billion KRW) △ GI Tech (Jo Yoon-hyun · Environmental pollution prevention facilities · 8.980 billion KRW) △ Jinmyung I&C (Kwon Oh-bok · Integrated broadcasting system · 11.885 billion KRW) △ Hana IT (Lee Sang-yeop - Do Eun-han · Wired and wireless communication convergence solutions · 19.727 billion KRW) △ Hongseong (Hong Chang-woo · Automotive rubber parts · 8.610 billion KRW) △ Hwaseong Metal Industry (Han Woo-seok · Multipurpose scissors · 10.945 billion KRW) △ Jinmyung Industry (Lee Kyu-hwan · Automotive drive devices · 43.784 billion KRW) △ Top Tech (Jeon Gyu-tae · Automation equipment automotive parts · 10.460 billion KRW)

▲ 'Global Small Giant Company' designated companies 11 companies

※ Parentheses indicate representative name, business description, and 2019 sales.

△ Surgedent (Heo Deok-su · Dental implant surgical instruments · 5.549 billion KRW) △ Odae Metal (Kim Chang-hyun · Automotive parts · 37.291 billion KRW) △ STM (Kim Jun-woo · Oil-seal O-ring/Gasket · 24.230 billion KRW) △ Glosco (Lee Jong-hwal · Tone wheel · 25.611 billion KRW) △ Sesung (Kim Se-ho · Gas detector · 29.857 billion KRW) △ Nakyeong (Cha Yoon-geun · Roll screen · 16.560 billion KRW) △ Georim Tech (Lee Chang-won · Functional tape and optical film · 77.033 billion KRW) △ Hydrotech (Gam Byung-woo · Hydraulic continuously variable transmission · 24.211 billion KRW) △ Shinpung Textile (Yoon Sang-bae · Functional fabrics · 5.715 billion KRW) △ Micro N X (Lee Jong-geon · Dental medical instruments · 8.002 billion KRW) △ Gooyoung Tech (Lee Hee-hwa · M/T BRK'T · 93.133 billion KRW)