Korea Federation of SMEs, Korea Venture Business Association, and Korea Startup Forum Welcome the Bill
The small, venture, and startup business sectors have expressed their support for the "Act on the Promotion of Small and Medium Enterprise Exports and Overseas Expansion," sponsored by Assemblywoman Kim Donga of the Democratic Party of Korea and submitted to the National Assembly's Trade, Industry, Energy, SMEs, and Startups Committee.
On December 31, the Korea Federation of SMEs issued a statement, saying, "This bill addresses issues that the SME sector has continuously raised. It is significant in that it integrates the various laws and policies related to exports and overseas expansion, which have previously been pursued in a fragmented manner, thereby establishing a systematic legal foundation." The federation added, "We expect this will reduce inefficiencies in budget and administrative resources, and further enhance the consistency and effectiveness of support policies."
The federation continued, "We hope this law will serve as the foundation for a balanced support system that not only assists capable SMEs in expanding overseas, but also ensures that increased overseas investment translates into domestic value creation, so that SMEs remaining in Korea are not left behind amid the restructuring of global supply chains." It added, "The SME sector will continue to work closely with the government and the National Assembly so that trade crises can be turned into new opportunities for growth."
On the same day, the Korea Venture Business Association also stated, "With the enactment of this law, the various support provisions that have been scattered across different laws will be integrated, creating a crucial institutional turning point for more systematically supporting the overseas expansion of small, venture, and startup companies in the rapidly changing global trade environment."
The association particularly noted, "Strengthening the overall coordination function at the pan-government level will greatly improve policy accessibility and effectiveness on the ground. In addition, the implementation of data-driven policies encompassing service exports and foreign direct investment is expected to provide substantial assistance in formulating global growth strategies for technology-based venture companies."
The Korea Startup Forum also commented, "By clearly including services and electronically delivered intangible assets in the definition of exports, this bill establishes the legal basis for supporting digital service-oriented companies, which have previously been overlooked by the existing goods-centered support system. The provision for analyzing and publishing trends related to service exports and foreign direct investment, as well as the ability to request and utilize data from relevant agencies, is a key mechanism that will determine the effectiveness of these policies."
The forum further stated, "This provision could lead to the design of more sophisticated support and incentives tailored to digital service export companies in the future. The bill’s mechanisms for responding to changes in the export and trade environment, supporting entry into overseas procurement markets, and promoting international development cooperation (ODA)-based collaborative projects will serve as a foundation for expanding the overseas pathways of startups."
Meanwhile, the main points of the bill submitted by Assemblywoman Kim on December 30 include: ▲ The Minister of SMEs and Startups will establish and implement a "SME Export and Overseas Expansion Promotion Plan" every three years; ▲ Strengthening policy foundations through surveys and the collection of statistics on the status of SME exports, imports, and overseas expansion; ▲ Operating consultation centers to respond to changes in export and trade environments, as well as establishing emergency support and post-management systems in times of crisis; ▲ Providing a legal basis for support throughout the entire export process; and ▲ Introducing step-by-step and systematic support for SMEs expanding overseas.
Assemblywoman Kim stated, "Through this new law, we aim to overhaul the fragmented export and overseas expansion support system, enabling SMEs to receive systematic, one-stop support without confusion. The National Assembly will take responsibility to ensure that our SMEs can continue to grow in the global market, leveraging the K-culture wave as a stepping stone."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
