SMBA Opens Arms to the World
SMBA Opens Arms to the World
  • Kim Yea-rim
  • 승인 2010.12.03 15:47
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Behind Korea's No. 7 ranking in exports are Korean SMEs

Kim Young-tae, Director of the Overseas Marketing Division for the SMBA

This year, Korea ranked 7th in world exports with a trade surplus of US $42 billion. How is that possible

Korea's SMEs and the Small and Medium Business Administration (SMBA:www.smba.go.kr) have played a pivotal role in propelling Korea into that position.

Trade environments are constantly changing. Thus, the SMBA has devised various kinds of support services to help Korean SMEs charge ahead and stay firm in the face of such transformation: the SMBA goes beyond simply providing groundwork and support as a consulting partner assisting SMEs in creating inroads into oversea markets.

To learn more about the SMBA's consulting services for foreign market entry and know-how, Korea IT Times met with Kim Young-tae (kdragon@smba.go.kr), Director of the Overseas Marketing Division for the Small and Medium Business Administration.The SMBA aims to maximize exports by encouraging Korean SMEs, ranging from start-ups to those armed with global competitiveness to make appropriate business choices and focus on their competencies. Provision of information on trade volume and overseas markets and buyer-seller matching services are part of what the SMBA does to catalyze exports. Promising SMEs who post up to US $1 million in exports, are discovered by the SMBA to bump up their exports to US $5 million in five years' time. In addition, the SMBA is keen on supporting overseas marketing through holding trade shows, offering support for export incubators and helping SME products meet international standards. What's more, by designating small but strong SMEs who are deemed capable of proficient growth in a sustainable manner to reach over US $5 million in the global market, the SMBA provides varied support such as export-oriented R&D, securing of key competitiveness and overseas marketing, in order to create jobs and boost exports. On top of that, the SMBA's online export support services are offered to jack up opportunities on a continuing basis and to mount an online promotional campaign to expose more products made by Korean SMEs to overseas buyers regardless of time and place.

SMBA's support programs have reached great achievements through the provision of support packages by the overseas marketing sector. From 2007 to 2009, export growth in SMBA-backed SMEs was 76.9%, which is 14 times higher than the average growth (4.1%) of SMEs as a whole. Furthermore, as of the end of September this year, exports of 1,592 SMBA-supported SMEs shot up to US $3.11 million from last year's US $2.62, a whopping 120% in growth.

Striking SME MOUs with other nations and raising joint SME funds

Most noteworthy among the SMBA's activities are efforts to lay the groundwork for foreign market entry by reinforcing international collaboration. By forging friendly relationships with many nations, the SMBA has created an environment where Korean SMEs can actively engage in trade activities of various markets. For example, the SMBA signed MoUs with China, the United Arab Emirates (UAE) and Israel, increasing joint SME promotional funds and facilitated SME investment. The SMBA has stepped up it's cooperative relationships with other nations: it introduced Korea's SME promotional policy to African nations such Ghana and Congo and invited interested parties who wished to learn about Korea's SME policy to participate in such activities.

"The government of Dubai that has recently gone through an economic crisis but has shown a high interest in manufacturing. Thus, we dispatched our experts to the UAE who wanted to learn about Korea's SME promotional policy and system, to offer strategic consulting services, advice on systems and English-language documents on laws. We always welcome any nation who wishes to take cues from Korea's SME promotional policy and system," said Director Kim Young-tae.

The SMBA also holds trade exhibitions and sends trade promotion delegations to emerging markets such as the Middle East and to Korea's FTA partners to chart new territory and unearth niche markets. Besides, to help Korean SMEs overcome high overseas trade barriers such as tricky technical standards, the SMBA offers information on overseas standards and how to get certified. Now, the SMBA is poised to wade into the markets of Korea's FTA partners like the EU, India and Chile as well as uncharted territory in Central and South America and Africa in search of niche markets. By fully cashing in on the advantage of FTA tariff eliminations, the SMBA plans to intensively tap into a huge commerce of emerging market economies to gain a vantage point.

Director Kim said, "We will make an all-out effort to discover strategic markets that are waiting to be tapped by Korean SMEs by conducting an in-depth market analysis by nation and by item."

Exports of Korean SMEs' products and success stories

Thanks to the SMBA's full-scale support, Korean SMEs' advanced technologies and SME CEOs' strong determination to export, more Korean SMEs are making a profit in oversea markets. Case in point is HAAN, a Korean home appliance maker. Armed advanced steam vacuum cleaners, HAAN has made remarkable achievements in overseas markets through its rigorous localization strategies such as setting up a subsidiary in the US and breaking into distribution markets. Another success story comes from the Korean company Lock & Lock who has been very successful in selling airtight food storage containers online and on home shopping networks in China.

In addition, there are many SMEs whose businesses have been booming in the global market thanks to the Korean government's backing for overseas marketing. For instance, in 2009, a Korean company that was included in the project, Make Korean SMEs Exporters - which provides participating SMEs with education on trade, buyer-seller matching services and market research - posted over US $15 million in exports, up from US $20,000. Another Korean company in the Project also saw its exports jump from US $60,000 to over US $5 million thanks to the Project's in-depth market research and trade shows. Additionally, Osstem Implant, a Korean supplier of dental implants, has successfully developed premium brand "HiOssen" and it won the US $20 Million Export Award in 2008.


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