Key Points
- The South Korean government has launched a new plan to support small and medium-sized export firms.
- The goal is to support 500 SMEs with annual export capacity exceeding $10 million by 2030.
- SMEs accounted for only 8% of South Korea’s total exports last year.
- Selected firms can receive up to $381,000 in financial support each year for up to three years.
The South Korean government has launched a new initiative to help 500 small and medium-sized enterprises (SMEs) become major players in the global export market. The goal is to reach an annual export capacity of over $10 million for each of these companies by 2030.
This move is part of a broader effort to diversify the country’s export-driven economy, which is currently heavily reliant on a handful of massive conglomerates. Last year, South Korea’s exports topped $700 billion for the first time, but a staggering 84% of that total came from just the top 1% of export firms. SMEs accounted for only 8%.
To address this, five of the country’s trade promotion agencies have signed an agreement to provide a broad range of support to small export firms. This will include help with marketing, getting the right certifications, accessing financing, and general consulting.
Under the new plan, SMEs identified as having high export potential in key sectors such as consumer goods, AI, semiconductors, and automobiles can apply for up to 560 million won (about $381,000) in financial support per year for up to three years.
“Fostering star export companies that pioneer new markets and new products is very important to overcoming polarization in exports,” said a deputy minister for trade and investment.
The government believes that by nurturing these smaller firms, it can not only build a more inclusive export structure but also push the country’s total annual exports to the $1 trillion mark in the near future.
