GYEONGGI, KOREA – “SMEs are the mainstay of the country’s economy and industry. GSBC will nurture small but strong companies based on selection and concentration strategies,” said Hong Ki-hwa, the president of Gyeonggi Small & Medium Business Center (GSBC).
Economic democratization, a buzzword from the incoming Korean incoming government, comes down to a mutual partnership and growth between large companies and SMEs. The phrase, ‘9988’– 99% of 3.12 million companies in total, and 88% of 14.13 employment – represents the significance of SMEs in the current Korean economy. “Despite their obvious importance, many SMEs are still suffering from unfair trade with large companies, regulations, subcontract transaction, and trust funds issues. What we are aiming is to lay the groundwork for the SMEs’ growth together with large companies fairly and transparently,” Hong said.
Gyeonggi Small & Medium Business Center
Gyeonggi Small & Medium Business Center (GSBC) is an organization established in Gyeonngi province. Its close proximity to the country’s capital, and the most populous province in South Korea, the GSBC offers support for its SMEs in terms of their technology development, exports, trade, and overseas marketing. Under the slogan “From Startup to Global Business”, GSBC is serving as a one-stop business center to help resolve SMEs’ difficulties including procuring funding, manpower, tax, and patents. The center is now operating seven Gyeonggi Business Centers (GBCs), overseas liaison offices of GSBC in Mumbai (India), Moscow (Russia), Kuala Lumpur (Malaysia), Sao Paulo (Brazil), Los Angeles (USA), Shanghai (China), and Syenyang (China).
“GSBC will place its primary emphasis on developing a mutual relationship between SMEs and large companies. The center has been running business meetings for Gyeonggi SMEs in conjunction with large companies and retailers. Last September, GSBC held one-on-one meetings for 50 SMEs together with 20 buyers from KT Commerce. In November, 70 SMEs were selected for a new round of buyers’ meeting with 16 partner companies of Samsung Electronics. This year, we are planning to further expand the project to improve the mutual partnership between large companies and SMEs,” said Hong.
Customized Support Measure
“Gyeonggi province has some 40,000 manufacturing firms, accounting for 36% of the total of 110,000 companies operating within its borders. To back them efficiently with the limited sources and manpower of GSBC, they have established customized support measures based on growth stages.”
To begin with, for startups that already possess sufficient technologies and business expertise, GSBC has been carrying out G-Startup projects. This aims to help people who have outstanding ideas and new technologies but have no knowledge of setting up businesses or lack the appropriate funds to do so. The center selects people based on their business plan’s appropriateness, technology, and marketability. They are then provided with work spaces equipped with office devices, funds up to 15 million won, and marketing training to start their business stably. On top of this, the start-ups are also encouraged to participate in G-Trade buyers’ meetings where overseas buyers are invited by the GSBC.
For companies in the growth stage, GSBC supports them to lead their new technologies and products to success through G-Family growth projects. The companies who wish to break into the global market can receive advice on international standard certification and patents, and are encouraged to attend overseas exhibitions. Every year, GSBC organizes G-Fairs including those in emerging cities like Mumbai and Kuala Lumpur. At these events, selected companies with technical competitiveness can unveil their new products and services to potential overseas buyers.
G-Star Project
“GSBC aims to nurture SMEs with high growth potential and technical prowess through “selection and concentration” strategies. Running G-Star projects, we select companies who have sales exceeding 2 billion won and innovative technologies, in a bid to foster them to be next generation Korean hidden champions possessing technical and market competitiveness. The companies first undergo business consulting and receive funds in the areas of R&D, commercialization, and marketing in a step-by-step manner. They are also jointly backed by other support agencies located within Gyeonggi province. GSBC has so far supported 60 companies and plans to select 40 more by next year,” he continued.
Hong Ki-hwa, who has served SMEs for over 30 years and formerly worked as CEO of KOTRA, has said that the core of SMEs relies upon technical skills. “As more companies in the global market seek to integrate with others, Korean SMEs’ successful breakthrough into the market is solely determined by whether their technology is globally competitive. If so, they can become successful in the market, either independently or in partnership with large companies.”
