[Asia Economy Honam Reporting Headquarters, Reporter Seo Young-seo] Amid the economic downturn caused by COVID-19 and the rapidly changing landscape of the 4th Industrial Revolution, companies are struggling desperately to survive as future uncertainties grow.
According to Muan County on the 29th, since fostering small and medium-sized enterprises (SMEs) is a critical issue directly linked to population, jobs, and youth, the county is implementing various support policies with an urgent mindset that the competitiveness of SMEs is the future of Muan, striving to develop "small but strong SMEs."
The county has been operating a makerspace on the 3rd floor of the Namak Complex Community Center since last year to help local SMEs build capabilities suited to the 4th Industrial Revolution era.
A makerspace refers to a workspace equipped with advanced equipment such as 3D printers, laser processing machines, and vacuum forming machines, where individuals can freely create what they desire.
In collaboration with the Mokpo National University Industry-Academic Cooperation Foundation’s Robot Artificial Intelligence Convergence Center, various educational programs such as SW coding classes, 3D makers, and maker club development are being conducted.
The county plans to support prototype production linked with local companies to spread the maker culture and intends to invest a total of 1.02 billion KRW by 2023 to make the Namak Makerspace a hub for nurturing creative convergence talents in the 4th Industrial Revolution.
Additionally, Muan County is promoting a smart factory dissemination project in cooperation with the Ministry of SMEs and Startups and Jeonnam Technopark to improve the poor manufacturing environment of local SMEs and aim for increased sales and productivity.
Smart factories are a core of the 4th Industrial Revolution, applying network-based real-time production methods favorable for small-lot, multi-product manufacturing. This project targets manufacturing companies with 10 or more employees, and 52 companies in Muan County qualify.
This year, the county plans to support four local manufacturing companies with 700 million KRW (including national and provincial funds) to introduce smart factories, and it is expected that 16 companies will complete smart factory construction by 2020.
The main concern of SMEs located in provincial areas is resolving labor shortages. Creating an environment where talented individuals can work long-term in SMEs strengthens corporate competitiveness. However, young people tend to avoid working in local SMEs due to low wages and poor working conditions, preferring jobs in large cities.
The county plans to implement various support policies to help young people employed in SMEs build an economic foundation and live stably in Muan without leaving for cities.
First, retention incentives (15 million KRW for youth, 5 million KRW for companies) will be provided to young workers with 1 to 4 years of experience and their employers, and the Youth Hope Stepping Stone Savings Account program will help them accumulate a lump sum.
Next year, young people who have worked in SMEs for more than two years and meet certain criteria will receive 300,000 KRW per month in Muan Love Gift Certificates for six months to enjoy welfare benefits.
Also, to reduce monthly rent burdens, 100,000 KRW per month will be supported for one year to rental residents with household incomes below 150% among young SME employees, and a dormitory with 28 rooms covering 1,403㎡ was completed last August with an investment of 3.5 billion KRW to ensure stable living and ease commuting for workers in the Cheonggye Industrial Complex.
With the rapid increase in online usage due to COVID-19, Muan County plans to support SMEs in developing sales channels through various projects.
Starting next year, an online promotional marketplace will be established to promote products of tenant companies. The goal is to help companies grow through continuous operation and follow-up management, not just a one-time online platform.
In particular, support for online product shipping costs and promotional events will be conducted to assist local SMEs in product sales amid the rise of online shopping.
Furthermore, to promote exports of excellent local products, the county plans to support participation fees for overseas exhibitions and foreign language website production costs for local companies, providing a foundation for strengthening export competitiveness and growing into global enterprises.
In response to these environmental changes, the government announced a comprehensive plan to strengthen Root 4.0 competitiveness last July, expanding the scope of the root industry and attempting to shift from a labor-intensive, low value-added industrial structure based on traditional manufacturing methods to a high value-added future-oriented industrial structure.
Accordingly, Muan County plans to invest 1.3 billion KRW (including provincial funds) to support the advancement of root companies and improve quality competitiveness in line with the government's root industry strengthening measures.
Details include research and development of core and basic technologies directly linked to sales, customized foreign worker training for companies, and support packages for certification of specialized root companies possessing core technologies, helping local root companies obtain specialized company certification to receive technology development support and preferential policy funding benefits.
County Governor Kim San said, "We have prepared various support measures so that local SMEs can overcome the crisis caused by COVID-19 and adapt to the 4th Industrial Revolution era," adding, "We will do our best to ensure that our county policies provide practical help to companies and workers so that competitive excellent companies can be nurtured."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
