Launch of 'Junggyeon Enterprise Digital Alliance'... Full-scale Promotion of Digital Transformation

Junggyeonryeon-Duzon Bizon and 11 Companies Sign Digital Transformation Cooperation Agreement
Over 20 Digital Transformation Demand Companies Express Investment Intentions of About 15 Billion KRW
More Than 20 Matches Between Mid-sized Companies and Startups Promoted

[Asia Economy Reporter Moon Chaeseok] The Ministry of Trade, Industry and Energy and the Korea Federation of Medium-sized Enterprises announced on the 23rd that they held the launch ceremony of the 'Medium-sized Enterprise Digital Alliance' for cooperation and expansion of digital transformation led by medium-sized enterprises at The Zone Eulji Tower in Seoul.

The event was organized to support the successful promotion of the 'Digital New Deal' by having capable demand and supply medium-sized enterprises cooperate amid the global rapid spread of digital transformation across the economy and industry.

The launch ceremony was held to fully implement the 'Digital-based Industrial Innovation Growth Strategy' announced last month.

At the event, the Korea Federation of Medium-sized Enterprises, representing demand medium-sized enterprises, and 11 digital transformation supply companies including Douzone Bizon and Coupang signed a business agreement.

The Federation and the companies agreed to actively cooperate in supporting the digital transformation of medium-sized enterprises and promoting the activities of the 'Medium-sized Enterprise Digital Alliance.'

Source: Ministry of Trade, Industry and Energy

First, they will promote digital transformation solution cooperation projects between demand and supply companies.

This is to help demand companies innovate manufacturing and services by applying digital technologies and create new businesses.

The Digital Alliance identifies demand companies that need to introduce and integrate digital technologies, and supports timely matching with supply companies that have the capability to provide technologies and services that meet the demands of the identified medium-sized and small enterprises.

About 20 demand medium-sized and small enterprises expressed their intention to invest approximately 15 billion KRW in digital transformation solutions within the next three years.

They will operate the 'Medium-sized Enterprise-Startup Digital Win-Win Lounge,' matching innovative startups' new ideas with the capabilities and experiences of medium-sized enterprises.

More than 20 matches between medium-sized enterprises and startups are targeted, with presentations of startups' digital-based business ideas planned.

For matched cooperative projects, support will be provided for business model concretization, consulting, and growth support programs, along with investment linkage such as crowdfunding and investment funds.

Capable digital transformation supply companies will be supported in participating in public procurement and sharing information on public institution projects to secure initial demand by entering the public market.

Support will be provided to utilize medium-sized enterprise global support projects to expand overseas market entry, with 25 billion KRW to be invested next year.

In the first half of next year, the Federation plans to establish a 'Digital Innovation Capability Enhancement Center.'

The center will support activities of the 'Medium-sized Enterprise Digital Alliance,' including education (online webinars, etc.), seminars, and regulatory improvements. It is expected to serve as a hub for all activities related to the digital transformation of medium-sized enterprises.

Minister of Trade, Industry and Energy Sung Yun-mo stated, "Digital transformation has become an essential strategy for survival, not just a matter of choice, as a 'game changer.' We will actively support the 'Medium-sized Enterprise Digital Alliance' so that companies can open digital innovation and new business opportunities together, which are difficult to achieve alone."

The Ministry plans to establish a 'Digital Convergence Alliance' in the future, involving large, medium, and small enterprises by industry, as well as associations and organizations, following the Medium-sized Enterprise Digital Alliance. They also plan to prepare legal and institutional foundations such as the 'Industrial Digital Transformation Promotion Act.'