Agreed to Cooperate on Digital Transformation, Carbon Neutrality, and Resolving Export Logistics Challenges
[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups have reactivated their policy council after about 2 years and 5 months. Following the appointment of former Minister Park Young-sun of the Ministry of SMEs and Startups, conflicts between the two ministries intensified, leading to the suspension of the policy council. They have now resumed the council to cooperate on industrial site innovation such as digital transformation and carbon neutrality, as well as resolving export logistics difficulties.
On the 6th, the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups held the "2nd Ministry of Trade, Industry and Energy - Ministry of SMEs and Startups Policy Council" at the Government Daejeon Complex.
At this council, resumed after about two and a half years since the first meeting in 2019, the two ministries discussed collaboration plans for supporting small and medium-sized enterprises (SMEs) and mid-sized companies during the industrial transformation period, resolving export logistics difficulties, and reviewed major industry-specific support policies.
First, in the field of industrial site innovation, they agreed to join forces for the passage of digital transformation-related bills such as the Industrial Digital Transformation Promotion Act and the Act on Support for Smart Manufacturing Innovation of SMEs, as well as for industrial site innovation in smart manufacturing, carbon neutrality, and ESG (Environmental, Social, and Governance). They will prepare joint support plans linked to SMEs' carbon neutrality support projects and strengthen the policy foundation for supporting low-carbon transition through collaboration on greenhouse gas emission surveys. They also plan to jointly operate an "ESG Management Support Platform" and establish "SME-type ESG Guidelines."
They also discussed collaboration plans such as logistics voucher projects and export marketing to support SMEs and mid-sized companies struggling with logistics difficulties and securing overseas markets. Specifically, export support agencies under both ministries will jointly promote nurturing promising small business exporters, attracting overseas investment for startups, and overseas marketing for "Brand-K."
In addition, they discussed linkage plans between industrial policies and corporate policies for various industries including the root industry, semiconductors, materials, parts and equipment (SoBuJang), and distribution logistics. They discussed expanding policy fund support for the root industry, cooperation support plans between small fabless companies and foundries, forming inter-ministerial working groups to revitalize SME distribution logistics, linking the Ministry of SMEs and Startups' SoBuJang research and development (R&D) projects with the Ministry of Trade, Industry and Energy's reliability-based utilization support projects, and reviewing plans to provide additional points. Regarding improvements to competition systems among SMEs such as the establishment of a new industry track, they agreed to fully reflect the diverse stakeholder opinions of mid-sized companies to prevent side effects such as monopolies and weakening industrial competitiveness.
Park Jin-gyu, Vice Minister of the Ministry of Trade, Industry and Energy, said, "There are many common tasks that require cooperation between the two ministries for the rapid recovery and leap forward of our economy. We will actively support SMEs and mid-sized companies so that they can use new trends such as digital transformation and carbon neutrality as a stepping stone for growth, and continuously work together to revitalize exports."
Kang Sung-chun, Vice Minister of the Ministry of SMEs and Startups, said, "Cooperation between the two ministries responsible for the real economy will be a driving force to evolve into demand-tailored policies by comprehensively resolving the difficulties of SMEs and mid-sized companies. Let us closely cooperate to continuously discover and discuss cooperative tasks in major policy areas so that the council will contribute to the development of the Korean economy."
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