Jungjingong Supports SMEs' Overseas Market Entry with Overseas Private Networks

Recruitment of Companies for the 2nd Phase of the Overseas Branch Project

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 19th that it is recruiting small and medium-sized enterprises (SMEs) and mid-sized companies to participate in the '2022 Overseas Branch Establishment Project 2nd Round.'

The Overseas Branch Establishment Project supports export and localization by acting as a local branch for SMEs and mid-sized companies that lack the capacity to establish overseas branches. The project operates with a total budget of 30 billion KRW and provides subsidies covering about 60% of the participating companies' project costs. SBC collaborates with KOTRA and the World Federation of Overseas Korean Traders Associations (OKTA).

SBC plans to recruit and support 400 SMEs and mid-sized companies this year. In particular, SBC designates global specialized companies as overseas private networks to provide necessary services for overseas market entry, such as local consulting and marketing.

The overseas private networks offer localization services including technology export and partnerships, product and item-specific target market entry, global value chain participation, and overseas patents and certifications. Currently, 152 companies are active in 34 countries worldwide.

Since 2001, SBC has supported overseas expansion and export promotion of SMEs and mid-sized companies through overseas private networks. Up to last year, a total of 5,667 companies have been supported, achieving export results worth 7.3 billion USD.

Chairman Kim Hak-do stated, "We will assist SMEs' overseas expansion together with specialized companies possessing expertise in global market support," and added, "We hope that the Overseas Branch Establishment Project will serve as a catalyst for SMEs and mid-sized companies struggling due to COVID-19 to pioneer overseas markets and expand exports."