"Management stability support is necessary for maintaining the status quo for a certain period, but it should not become the ultimate goal of policies for small and medium-sized enterprises. There is an urgent need for policy efforts to promote innovation and growth beyond short-term support for small and venture businesses."
Jo Joo-hyun, the head of the Korea SMEs & Startups Institute (KOSI), said this during a press briefing marking his first anniversary on Sept. 2 at the CCMM Building in Yeouido, Seoul. The briefing was organized to review the research and management achievements over the past year and to share future operational directions of the institute. The KOSI is a policy research organization under the Ministry of SMEs and Startups, supporting government policy formulation through research, surveys, and evaluations of small and venture enterprises.
Over the past year, the KOSI has focused its efforts on research for the medium- to long-term growth of small and venture businesses. Jo noted, "We are conducting research by introducing a 'major project' involving internal personnel and external experts to enable small and venture businesses to respond to medium- to long-term socio-structural changes like demographic shifts, low growth, and external environments." The goal is to increase the number of major projects from zero in 2024 to three this year.
The institute also carried out 'urgent issues' and 'ad hoc research' to respond to short-term issues. It conducted in-depth research on startup artificial intelligence (AI), smart manufacturing, and regional development, and operated ad hoc research on a quarterly basis to respond to rapidly changing management environments such as tariffs and carbon neutrality from the United States. To share the research results, it also reissued 'Small Business Issues N Focus.'
Internally, the focus was on management innovation. Jo said, "In order to normalize management, we initiated cost reductions, such as downsizing the Sejong branch, and restored operational stability through the expansion of entrusted projects." However, regarding the downsizing of the Sejong branch, he explained, "It was normalizing excessively invested parts," and added, "Collaboration with the Ministry of SMEs and Startups will continue closely."
He also added that there was a focus on establishing a results-oriented culture through the payment of performance bonuses based on management evaluations and strengthening governance foundations through the establishment of subcommittees within the board.
The KOSI presented research directions including responses to medium- to long-term paradigms, advancement of data-driven policy research, issue discovery based on policy demands, and expansion of global collaboration. From a management perspective, it plans to promote fiscal stabilization, establish a system of organizational innovation, and develop a performance-based personnel and incentive system.
Jo emphasized, "We will work together with the government to develop policies and conduct research so that small and venture businesses can grow 'genuinely' and make our Korea a truly advanced economic country."
Meanwhile, Jo evaluated the budget of the Ministry of SMEs and Startups this time as reflecting "the policy needs well." He noted, "It is remarkable that the budget increase rate for small and medium-sized enterprises, small business owners, and venture companies exceeds 10%," and added, "In particular, it seems to reflect the government's intention to act as a catalyst for economic innovation and improvement of the organizational capabilities of small and venture enterprises, focusing on technology development (R&D), AI investment, and venture capital."