'GoBiz Korea' with 290,000 Overseas Buyers
2 Million Monthly Visitors... Recruiting 2,000 Companies This Year
Expansion of 'Global Accelerating' Program
Venture Industry Calls for KOSDAQ Market Reform
Also Urges Passage of Multiple Voting Rights Bill
[Asia Economy Reporter Kim Bo-kyung] Last year, the government's export support projects for small and medium-sized enterprises (SMEs) and startups achieved record-breaking results despite the COVID-19 pandemic. As non-face-to-face and digital transactions became more active, export volume through online platforms surpassed 100 million dollars, marking an all-time high.
According to the Ministry of SMEs and Startups on the 22nd, the export amount of SMEs through the online export platform 'GoBizKorea' reached 114 million dollars (approximately 128.8 billion KRW) last year, achieving the highest performance ever. Compared to export amounts of 46.48 million dollars in 2018 and 53.06 million dollars in 2019, it more than doubled. This is attributed to the increase in SMEs and overseas buyers turning to online channels as face-to-face activities such as overseas exhibitions and fairs were blocked due to the COVID-19 impact. The English site of GoBizKorea had an average of 2 million visitors per month last year.
There are about 290,000 overseas buyers registered on GoBizKorea, and it holds 68,000 domestic SMEs and 260,000 products. The Ministry provides services such as ▲listing on the GoBizKorea platform ▲one-on-one matching with overseas buyers ▲search engine marketing and SNS marketing ▲online exhibitions and video consultations ▲purchase offer management and trade practice support. Especially this year, promotional pages tailored to the characteristics of companies and products and themed online exhibition halls were created using 4D technology. Marketing using review videos or influencers and keyword advertising on search engines like Google are also supported.
AC Corporation, founded in 2015, met a Mexican buyer looking for nano-filter masks through the GoBizKorea support project and signed a contract worth 700,000 dollars last year. Carat, which developed a small clothing care device called 'Laundry,' succeeded in entering the Hong Kong market with the help of GoBizKorea trade experts and is negotiating new contracts with buyers in Southeast Asia such as Malaysia and Vietnam. The Ministry is recruiting 2,000 companies to participate in the GoBizKorea project by the end of this month, with a total support scale of about 3.5 billion KRW.
The 'Global Accelerating Program,' implemented by the Ministry of SMEs and Startups since 2011, is also actively progressing. The Global Accelerating Program provides opportunities for startups to enter overseas markets. Participating in demo days hosted by overseas startup accelerators allows securing global investment opportunities and receiving continuous follow-up management. Last year, as a result of non-face-to-face support for 53 startups, 36 companies succeeded in overseas expansion, including 123 new hires, supply contracts, establishment of overseas subsidiaries, and signing of memorandums of understanding (MOUs).
This year, the support scale will nearly double to 90 companies, expanding into six regions in five countries including Beijing, China, and Berlin, Germany. Commercialization funds will also increase from 10 million KRW per company last year to 25 million KRW this year.
Last year, 'Comachine,' an online platform for the machinery industry participating in this program, succeeded in signing a trade contract worth 127,000 dollars (14 million KRW) with company T, which manufactures fire suppression equipment in France. Park Eun-cheol, CEO of Comachine, said, "Due to COVID-19, overseas business trips became difficult, and I thought it was nearly impossible to build trust and start transactions with new clients," adding, "The accelerator directly introduced partner companies, and participating in the accelerator program served as a reference, enabling the first deal to be concluded."
However, the industry is raising voices that regulations should be eased to allow more venture companies to strengthen their overseas expansion capabilities. A Korea Startup Forum official said, "No one would have expected Coupang to be recognized with a corporate value of 100 trillion KRW in the global market," adding, "Companies worthy of recognition on the world stage are emerging one after another, but ironically, domestic listing is impossible." He said, "It is necessary to expand special listing or improve the structure of the KOSDAQ market to encompass startups."
The passage of the bill allowing 'multiple voting rights,' which Coupang utilized when listing on the U.S. stock market, is also an urgent task. The 'Venture Business Act Amendment,' which allows multiple voting rights (two or more voting rights per share) for unlisted venture companies, is pending at the National Assembly's Industry, Trade, Energy, SMEs, and Startups Committee. The Innovation Venture Organizations Council issued a statement on the 22nd, saying, "Large exits (investment recoveries) of innovative ventures and startups are continuing," and "It is urgent to enhance the global competitiveness of the domestic securities market by introducing multiple voting rights."
The Innovation Venture Organizations Council includes 16 venture, startup, and investment organizations such as the Korea Venture Business Association, Korea Startup Forum, KOSDAQ Association, and Korea Venture Capital Association. They argued, "Introducing the multiple voting rights system will strengthen the global competitiveness of the domestic securities market and activate domestic listings of digital innovation companies."
The council said, "Once the bill is enacted, founders will be able to exercise entrepreneurship from a long-term perspective based on stable management rights," adding, "It will be an opportunity for venture companies to receive large-scale investments and grow into unicorn companies."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
