"SMEs, Promote Globalization from the Startup Stage"

'2024 Small and Medium Business Leaders Forum' Global Debate
"Globalization of Small and Medium Businesses, Now a Necessity, Not a Choice"

Professor Oh Dong-yoon of Dong-A University (former president of the Small and Medium Business Venture Research Institute) emphasized on the 9th that "innovation and globalization are a single bundle" and that "promoting globalization from the startup stage is effective."

Professor Oh made these remarks during his keynote presentation at the '2024 SME Leaders Forum' SME Globalization Grand Debate held at Haevichi Hotel Jeju, stating, "Korea starts businesses based on the domestic market and then enters the global market. Investing separate capital and manpower for globalization does not have a high chance of success."

Professor Oh Dong-yoon of Dong-A University (former President of the Small and Medium Business Venture Institute) is presenting a topic at the "2024 SME Leaders Forum" SME Globalization Grand Debate held on the 9th at Haevichi Hotel Jeju.
[Photo by Korea Federation of SMEs]

The debate was attended by △ Kim Ki-moon, Chairman of the Korea Federation of SMEs △ Kim Seok-ki, Chairman of the National Assembly Foreign Affairs and Unification Committee, and over 100 representatives of SMEs from various industries.

In his presentation titled 'Current Status and Challenges of Globalization of Korean SMEs,' Professor Oh pointed out, "South Korea's gross domestic product (GDP) increased about 700 times from 2.4 billion dollars in 1962 to 1.6733 trillion dollars in 2022, but the growth rate is gradually slowing down. The cause lies in sluggish innovation and globalization."

He added, "For sustainable growth, it is now time to focus on qualitative expansion such as innovation and globalization rather than quantitative expansion," and stated, "It is necessary to build a global value chain that globalizes the entire supply chain of corporate management, from simple products to production and management activities."

The subsequent discussion was chaired by Lee Si-wook, President of the Korea Institute for International Economic Policy, and attended by △ Choi Woo-gak, Vice Chairman of the Korea Federation of SMEs △ Vu Ho, Vietnamese Ambassador to Korea △ Park Jong-beom, President of the World Korean Trade Association △ Kim Woo-jae, Chairman of the 22nd World Korean Business Convention △ Ko Sang-gu, President of the World Federation of Overseas Korean Associations, among others.

Choi Woo-gak, Vice Chairman of the Korea Federation of SMEs, said in the panel discussion, "Although exports of Korean products such as K-Food and K-Beauty have surged recently riding the 'Hallyu' wave, more than 90% of small and medium manufacturers rely solely on the domestic market," and argued, "Due to the narrow domestic market, entrenched low growth, and inevitable competition with foreign companies such as Ali and Temu, globalization of SMEs is now a necessity, not a choice."

Vu Ho, Vietnamese Ambassador to Korea, said, "Korea and Vietnam have a close cooperative relationship in trade and investment, and following the visit of Vietnamese Prime Minister Pham Minh Chinh to Korea last August, cooperation between SMEs of the two countries will be further strengthened," and proposed, "In the future, the two countries should expand trade and investment cooperation in new fields such as semiconductors, artificial intelligence (AI), hydrogen, and the entertainment industry."

Park Jong-beom, President of the World Korean Trade Association, said, "Now is the right timing for our companies to enter the European market as the Hallyu wave has increased product trustworthiness," and emphasized, "To successfully enter the European market, it is important to build trust-based local partnerships and strengthen cooperative relationships with local companies and institutions."

Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business, is delivering a greeting at the '2024 SME Leaders Forum' SME Globalization Grand Debate held at Haevichi Hotel Jeju on the 9th.
[Photo by Korea Federation of Small and Medium Business]

Kim Woo-jae, Chairman of the 22nd World Korean Business Convention, stated, "Due to recent global supply chain instability, resource-rich and populous Indonesia is rapidly emerging, and SME entry into Indonesia is active, but there are still difficulties such as permits and foreign investment regulations, so government-level support is needed."

Ko Sang-gu, President of the World Federation of Overseas Korean Associations, emphasized, "To promote SME globalization, it is essential to utilize the Korean network of 7.5 million overseas Koreans worldwide," and stressed, "Regarding the Overseas Korean Agency launched last year, close cooperation between associations and institutions is necessary."

Kim Ki-moon, Chairman of the Korea Federation of SMEs, said, "As the brand value of 'Made in Korea' products overseas rises, conditions for overseas expansion are improving, and various SME products from K-Beauty to stationery and accessories are selling like hotcakes," and added, "Since many SMEs still remain in the domestic market due to lack of professional manpower and information, I hope that various policy alternatives and solutions will be presented through today's debate."