Supporting the 'Economic Backbone'... 305 Mid-sized Companies Selected for Overseas Expansion Support

Ministry of Industry Launches 'Deungdae Project'... Identifying and Supporting 300 Globalization Candidates by 2024

Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy is presiding over the 2nd Mid-sized Enterprise Policy Committee held on the 24th at Lotte Hotel in Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Trade, Industry and Energy announced on the 1st that it has finalized the selection of 305 companies participating in the 'Mid-sized Enterprise Global Support Project' in collaboration with the Korea Trade-Investment Promotion Agency (KOTRA) and will begin full-scale export marketing support.

Starting this year, according to the 'Lighthouse Project Implementation Plan' announced last month, the ministry will begin by supporting 25 domestic-oriented companies and will identify and focus support on 300 global candidate lighthouse companies by 2024. To expand overseas advancement of strong small and mid-sized enterprises with global growth potential, KOTRA will provide one-on-one export consulting and issue vouchers that can be used to purchase various services necessary for overseas marketing.

First, the Ministry of Trade, Industry and Energy selected mainly strong small and mid-sized enterprises such as the 'World Class 300' that have high future growth potential and strong willingness to expand overseas. Companies related to quarantine and bio sectors, as well as those producing advanced technology products such as semiconductors and IT leading the 4th Industrial Revolution, accounted for a high proportion of 28.8%.

To support the global market entry of domestic-oriented strong small and mid-sized enterprises, a dedicated track for 'domestic mid-sized enterprises' with less than 10% export ratio or export scale under 10 million USD has also been newly established. The ministry plans to provide customized services for domestic companies by supporting the entire cycle from 'strengthening corporate capabilities (capability diagnosis, mentoring) → discovering target markets (overseas market research, export consultation meetings) → full market entry (buyer discovery and mediation, issuance of vouchers up to 100 million KRW),' guiding domestic-oriented strong small and mid-sized enterprises to become export companies.

Furthermore, KOTRA, specialized trading companies, voucher service providers, and the Korea Trade Insurance Corporation will form a comprehensive support system called the 'Export Pioneer Business Club.' This club will provide package support from marketing to policy finance, including consulting, export consultation meetings, and support programs for export beginner companies. Starting with 25 companies this year, the plan is to support 300 companies by 2024 and discover 30 global lighthouse companies.

The Ministry of Trade, Industry and Energy will also publish a 'Digital Marketing Guidebook' for domestic strong small and mid-sized enterprises in cooperation with KOTRA and hold related seminars.

Jang Youngjin, Director of Industrial Innovation Growth at the Ministry of Trade, Industry and Energy, said, "This project will enhance the globalization capabilities of our mid-sized enterprises, which have a high dependence on the domestic market," adding, "It will contribute to our economy's leap to an advanced economic structure shaped like a 'jar,' where mid-sized enterprises are robust, rather than the 'double-hump camel' structure centered on large and small enterprises."