SMEs Break into Overseas Markets through Untact Methods

'Export Consortium' Switches to Video Conferencing... Up to 6 Million KRW Support per Company

Headquarters of the Korea Federation of Small and Medium Business

[Asia Economy Reporter Kim Daeseop] The Korea Federation of Small and Medium Business (Kbiz) is converting its export consortium project, which supports SMEs participating in overseas exhibitions, into a 'contactless (untact) method' such as online video consultations and exhibitions. Until the 7th of next month, it is recruiting host organizations for the '2020 Export Consortium Alternative Project' to provide new export opportunities to SMEs struggling to open overseas markets due to the COVID-19 pandemic.

According to Kbiz on the 16th, this export consortium alternative project will be supported by dividing it into 'untact online video consultation meetings' and 'exhibitions (online and offline),' and after forming consortia by host organizations, it plans to proceed in three stages (preparation → consultation/exhibition → follow-up management).

In the first stage (preparation), support will be provided for creating customized online digital content such as foreign language video content and product design. In the second stage (consultation/exhibition), activities such as discovering and matching overseas buyers, interpretation, and support for exhibition participation fees will be carried out. In the third stage (follow-up management), support will be provided for marketing and promotion expenses such as entry into overseas online platforms.

In particular, costs required for discovering and matching overseas buyers for video export consultations, sample shipping costs, etc., will be fully supported up to a maximum of 6 million KRW per company (50,000 to 2 million KRW per item). The 'Offline Overseas Exhibition Direct Dispatch Project' will also support SMEs wishing to directly participate in offline overseas exhibitions. A Korean pavilion will be organized and dispatched, and 50-70% of direct expenses at each project stage (exhibition hall rental fees, installation fees, interpretation fees, transportation costs of exhibits, etc.) will be supported.

Kbiz has supported SMEs participating in overseas exhibitions through the export consortium project by covering rental and installation costs, but due to the COVID-19 situation, it has prepared this untact export support project.

Host organizations eligible to participate in the export consortium alternative project include export-related institutions, non-profit business organizations related to SMEs (such as SME cooperatives, industry-specific organizations, associations), and private specialized companies (specialized trading companies, exhibition specialists, etc.). Applications can be submitted online through the 'SME Overseas Exhibition Portal' website, followed by mailing the related documents.

Jeon Hyesook, head of the Trade Promotion Department at Kbiz, said, "Although it has become difficult to open overseas markets mainly offline due to the COVID-19 pandemic, SMEs' efforts to export continue," adding, "We will provide new export opportunities to SMEs even in the COVID-19 situation by moving away from the existing overseas marketing support methods and adapting to the online, digital, and untact era."