The government aims to boost small and medium-sized enterprise (SME) exports to a record $180 billion by 2030. This initiative seeks to diversify the current export structure, which is heavily reliant on K-beauty, by expanding into sectors such as fashion, food, and industrial goods. Additionally, the government plans to promote the enactment of the 'Act on the Promotion of Overseas Expansion of SMEs.'
On September 3, the Ministry of SMEs and Startups discussed the 'Four Major Innovation Strategies for SME Exports' during the 13th National Policy Coordination Meeting chaired by the Prime Minister.
SME exports reached a record high of $64 billion in the first half of this year. The emergence of new growth drivers, such as K-beauty and online exports, has contributed to the diversification of South Korea's export items and markets.
To ensure that the current export success is not a temporary achievement, the government has outlined four major innovation strategies: accelerating the rapid growth of promising export companies, discovering and supporting promising export items, exploring emerging markets, and enhancing the export support system centered on businesses.
Through the 'Global Scale-up 500' initiative, the government will select 500 promising export companies with high growth potential and provide multi-year, package support based on an export roadmap. The plan includes expanding support to cover sourcing of raw materials and strengthening connections with local market entry specialists to enhance marketing and supply chain assistance.
The 'Export ON 2000' program will target 2,000 companies, including young entrepreneurs, small business owners, regional firms, and companies re-entering the export market. Tailored programs will be offered, covering everything from export preparation to utilizing online platforms, joint overseas ventures, and re-entry support.
In the consumer goods sector, the government plans to identify next-generation 'K-brand strategic items' such as fashion, food, and beauty devices, and support SMEs' overseas marketing by leveraging the networks of distribution and media companies. Collaboration among government agencies will also be strengthened to resolve challenges in logistics, intellectual property, and certification during the export process.
In the industrial and tech sectors, the government will identify 'K-Tech strategic items' by reflecting overseas industrial policies, supply chain dynamics, and technological changes. Support will be provided for local proof of concept (PoC) projects, technology and product enhancements, and funding and consulting for overseas exhibitions and export contract fulfillment.
Channels for international cooperation established through diplomatic efforts will be transformed into opportunities for SMEs. A comprehensive overseas expansion hub will be established in India, while K-beauty will expand its online and offline presence in Brazil. A startup-focused hub will be set up in Singapore, and a global venture fund (K-VCC) will be created, along with a permanent K-brand pop-up store in Europe. In Mongolia, support for market entry will be pursued using local convenience store networks and distribution infrastructure.
The government will also enhance policy accessibility for SMEs. This includes integrating export support announcements and simplifying application documents, as well as implementing AI-based tailored recommendations for buyers and support programs. A 'Permanent Difficulty Reporting Center' will be established to respond to rapidly changing trade environments. The enactment of the 'Act on the Promotion of Overseas Expansion of SMEs' will provide a legal foundation to support SMEs' international ventures. Collaboration with global networks, such as the 'APEC Startup Alliance,' will also be strengthened.
Yoon Yong-seok, the First Vice Minister of the Ministry of SMEs and Startups, stated, "In the face of ongoing uncertainties in the global trade environment, it is crucial to solidify the foundation for SME exports and growth to sustain current export achievements. We will focus our policy efforts on quickly implementing the four major innovation strategies to exceed the existing national goal of $150 billion and achieve $180 billion in SME exports by 2030."
* This article has been translated by AI.
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