We will focus our policy capacity on a structure where the private sector invests first and the government provides follow-up support, long-term and large-scale support, and the spread of "smart factories."
Minister Han Seong-sook of the Ministry of SMEs and Startups announced measures to foster innovative small and midsize enterprises at a "dialogue with SME owners" presided over by President Lee Jae-myung at the state guesthouse on the 20th.
The Minister said, "The key to SME growth ultimately lies in leading-edge technology," adding, "A model in which the private sector invests first and the government matches research and development (R&D) has shown higher market fit and success rates." She went on to say, "We will further expand private-first, government-follow-up models such as TIPS."
The support method will also be overhauled. The Minister said, "On the ground, there were many criticisms that the support period was short and the amounts were insufficient," adding, "For high-difficulty technology development such as deep tech, we will expand long-term, large-scale programs, including support of up to 20 billion won for as long as four years." She added, "We will also strengthen consortium-type support among corporations to compensate for scale limitations."
Tailored support by sector will be strengthened in cooperation with government ministries. The Minister said, "New industries such as AI, bio, defense, and Climate Tech are areas where SMEs can lead," adding, "We will strengthen inter-ministerial linkages in collaboration with the Ministry of Science and ICT, the Ministry of Health and Welfare, the Ministry of National Defense, and the Defense Acquisition Program Administration." She added, "We will focus on building a collaboration structure for entering new markets."
The Minister also said policy will focus on commercializing research outcomes. The Minister said, "There are cases where technology developed in the lab does not make it into industry," adding, "We will push in earnest for technology commercialization programs such as technology transfer by research institutions, platforms that transact technology, and a 'Korean-style STTR (a program dedicated to SME technology commercialization).'"
She also emphasized a plan for the government to serve as the "first buyer." The Minister said, "We will build a system in which the government can shoulder part of the initial market risk by improving demonstration purchasing for innovative technologies and the public procurement system."
Building "smart factories" for productivity innovation was also presented as a core task. The Minister said, "There are various terms such as smart manufacturing and AI factories, but we have settled on smart factories." The Minister continued, "Smart factories are essential especially for SMEs short on personnel and resources," adding, "We will raise productivity through the spread of AI-based smart manufacturing and create a virtuous cycle leading to lower defect rates and increases in sales and employment."
Lastly, the Minister said, "We will enhance global competitiveness by linking sectors where SMEs excel—beauty, cosmetics, food, and fashion—with specialized institutions and relevant ministries," adding, "Regional SMEs will also be shifted to a cooperation structure with large corporations, industrial complexes, and local governments." She added, "We will cultivate local talent and build a virtuous cycle in which they work and settle at regional corporations."