SME Sector: "Ministry of SMEs and Startups' 'SME Leap Strategy' Will Support SME Growth"

Ministry of SMEs and Startups Announces 'SME Leap Strategy'
Korea Federation of SMEs: "Effective Support Policies"
Venture Business Association: "Welcomes Regulatory Improvements to Promote Investment"
Inno-Biz Association: "Will Enhance Growth Capabilities"

The small and medium-sized enterprise (SME) sector has welcomed the Ministry of SMEs and Startups' announcement of the 'SME Leap Strategy.'

On the 29th, the Ministry of SMEs and Startups announced the 'SME Leap Strategy,' which includes 17 implementation tasks centered on ▲innovative growth ▲sustainable growth ▲inclusive growth ▲global leap ▲smart support. Key points include a complete overhaul of the business transformation system and expanding the concept of ‘business succession’ among relatives to ‘corporate succession’ including M&A.

Minister Oh Young-joo of the Ministry of SMEs and Startups is announcing the 'SME Leap Strategy' on the 29th at the Korea Federation of SMEs in Yeongdeungpo-gu, Seoul. (Photo by Ministry of SMEs and Startups)

In response, the Korea Federation of SMEs issued a statement saying, "We welcome the 'SME Leap Strategy' prepared to respond to the complex crisis faced by SMEs and to foster future innovative growth."

The Federation evaluated, "This measure symbolizes a commitment to intensify effective support and nurturing policies to overcome the situation where the proportion of competitive SME groups (small and medium enterprises) is decreasing despite the quantitative increase of SMEs, including micro-enterprises."

They added, "The strategy significantly reflects the SME sector’s continuous proposals such as ▲enactment of a special law on corporate succession ▲reform of SME scope criteria ▲expansion of the payment linkage system ▲utilization plans for foreign students," and expressed hope that "reasonable standards will be established as soon as possible considering economic growth and inflation."

In particular, the Federation assessed that this strategy could contribute to alleviating cost burdens and resolving labor shortages for SMEs.

The Korea Venture Business Association and the Innobiz Association also expressed their support.

The Korea Venture Business Association stated, "We expect proactive policy support for responding to environmental changes and advancing the ecosystem to ensure the sustainable growth of SMEs and venture businesses, which are the sources of economic growth and job creation."

They continued, "The measures such as institutional improvements for stable operation of the mother fund including market-driven private capital inflow, regulatory improvements to promote CVC investments, and establishment of a public-private collaborative SME-exclusive platform reflect industry proposals and raise high expectations."

The Association added, "The plans for additional global fund formation, attracting and nurturing global talent, and establishing a global center are expected to provide SMEs and venture businesses with a tightly knit, long-term infrastructure to support global market penetration," and stated, "We will actively participate in collaboration with related organizations to identify and improve unreasonable regulations that hinder the innovative growth of startups and venture companies."

The Innobiz Association said, "Support for ‘R&D innovation’ through strengthened investment and financing using private capital and ‘global leap’ support through open innovation such as commercialization R&D cooperation with excellent overseas research institutes will enhance entry into new industrial fields and growth capabilities."

They added, "The revision of the Innobiz certification evaluation indicators to incorporate ESG factors and add items such as global technological capabilities and export performance will contribute to strengthening the role and activities of technology-innovative SMEs and serve as an opportunity to proactively prepare for future environmental changes."