Korea Petroleum Management Service Signs 'Cooperative Profit Sharing System' Agreement with SMEs for Localization of Testing Equipment

"Domestic Research Equipment Market Domestic Share 15%...Support for SMEs and Promotion of Localization"

Kim Wansik, Director of the Petroleum Technology Research Institute at the Korea Petroleum Management Institute (left), and Kim Taeseon, CEO of Max Solution, pose for a commemorative photo after signing the "Cooperative Profit Sharing Agreement" on the 25th. (Photo by Korea Petroleum Management Institute)

[Asia Economy Reporter Moon Chaeseok] The Korea Petroleum Management Service is involving small and medium-sized enterprises (SMEs) in the localization project of testing equipment to share development benefits.

On the 27th, the Petroleum Management Service announced that on the 25th, it signed an agreement on the 'Testing Equipment Localization Cooperation Profit Sharing System' with MacSolution, an SME developing testing equipment, at the Petroleum Technology Research Institute in Ochang, Chungcheongbuk-do.

The cooperation profit sharing system is a win-win program implemented by the Ministry of SMEs and Startups to overcome polarization between large corporations and SMEs and to induce innovative growth.

When a public institution (large corporation) and an SME work together to achieve the targeted profit, they share the profit according to a prior agreement.

According to this agreement, the Petroleum Management Service will localize two types of foreign testing equipment through MacSolution. The performance and user convenience satisfaction of the developed testing equipment will be evaluated, and profits (such as budget savings) up to 10% will be shared based on the score.

Kim Wansik, head of the Petroleum Technology Research Institute at the Petroleum Management Service, said, "Recognizing the problem that domestic products account for only about 15% of the domestic research equipment market, we have been promoting localization since last year," adding, "We will involve SMEs in the localization of research equipment to support their growth and create synergy effects."