Ministry of SMEs and Startups Announces Export Status Check and Response Direction at Deputy Prime Minister-led Meeting
Export Companies Favored... Hallyu Promotion Campaign
The government has decided to postpone the limit on the number of times export companies can receive policy fund support until next year to expand exports of small and medium-sized enterprises (SMEs).
On the 17th, the Ministry of SMEs and Startups announced the status of SME exports and response directions at the 'Emergency Economic Ministers' Meeting and Export Investment Countermeasures Meeting' chaired by the Deputy Prime Minister for Economy.
SME exports in the first quarter of this year amounted to $27.3 billion, showing a 7.9% decrease compared to the same period last year.
The decline in exports was analyzed to be due to sluggish exports to China and weak demand for diagnostic kits following the COVID-19 endemic. SME diagnostic kit exports recorded $630 million, down 67.5% from the same period last year.
Exports to China (-18.9%) and Vietnam (-14%), where production slowed due to deteriorating manufacturing conditions, also decreased. However, exports to emerging markets such as Russia (57%), India (0.3%), Mexico (5.3%), and Thailand (0.9%) showed strong growth.
By export item, plastic products (-16.1%) and synthetic resins (-19.9%) decreased due to the impact of the Chinese market, but cosmetics (9.8%), automobiles (99%), and automobile parts (7.1%) recorded high export growth rates.
Accordingly, the Ministry of SMEs and Startups plans to strengthen strategic preferential measures for export companies and support the expansion of overseas bases and local market entry.
The limit on the number of times policy fund support can be received will be postponed until next year for companies with export performance of over $300,000 in the past year.
A uniform 3 percentage point additional interest rate subsidy will be applied to companies with export performance of over $100,000. There are 1,275 companies with export performance exceeding $100,000.
In addition, when handling guarantees for export-related funds such as trade finance, the limit for calculating required working capital will be expanded up to 110%.
The export amount weighting (double) will be applied in calculating sales, which is the criterion for judging 'excellent projects' in the Ministry's R&D. Customized strategic consulting such as overseas marketing, certification acquisition, and online platform entry will also be provided by matching export voucher participating companies with specialized institutions.
In September, a Global Business Center (GBC) will be opened in Saudi Arabia, where an SME export fair and sales promotion event linked with Korean Wave performances will be held. Focused promotions will be conducted seasonally for excellent products listed on global shopping malls such as Amazon.
A 'Regional Export Revitalization Task Force' will be operated to check export conditions and resolve difficulties for regional companies centered on key industries by region.
Minister Lee Young of the Ministry of SMEs and Startups expressed his ambition, saying, "SMEs, which directly and indirectly contribute about 40% of our exports, will increase their export contribution rate to over 50% by 2027." He added, "We will do our best to foster export SMEs that lead future new markets with innovative technologies and ideas."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
