The government will overhaul the export support system to turn record-high small and midsize business exports into sustained growth.
The Ministry of SMEs and Startups said on the 3rd at the 13th National Policy Coordination Meeting, chaired by the prime minister, that it announced the "four innovation strategies for small and midsize business exports" with related ministries.
Small and midsize business exports hit a record high of $64 billion (about 86.8 trillion won) in the first half of this year. With new growth engines such as K-beauty and online exports emerging, they are also contributing to diversifying Korea's export items and markets.
To ensure the current export boom does not remain a temporary outcome, the government presented four strategies: ▲ rapid growth of promising export corporations and expansion of the export base ▲ discovery and fostering of promising export items ▲ pioneering of emerging markets ▲ advancement of a corporations-centered export support system.
First, through "Global Scale-up 500," the government will select 500 promising export corporations with high growth potential and provide multi-year, package support based on export road maps. It will add sourcing of raw and subsidiary materials to export vouchers and strengthen links with local-entry specialist institutions, widening support beyond marketing to include supply chains.
It will also push the "Export ON 2000" project for 2,000 corporations, including young entrepreneurs, small merchants, regional corporations, and corporations reattempting exports that are taking on overseas markets. By target group, it plans to provide tailored programs from export preparation to use of online platforms, joint overseas expansion, and reattempt support.
Support by item will also be strengthened. In consumer goods, it will discover fashion, food, and beauty devices as next-generation "K-brand strategic items" and support small and midsize businesses' overseas marketing by using distribution and media corporations' overseas networks. It will also reinforce inter-ministerial cooperation to resolve difficulties in the export process, such as logistics, intellectual property, and certifications.
In industrial goods and tech, it will identify "K-Tech strategic items" that reflect foreign industrial policies, supply chains, and technological changes. It will support everything from local proof-of-concept (PoC) in connection with large corporations at home and abroad and advancement of technologies and products to overseas exhibitions and funding and consulting needed to execute export contracts.
It will also prepare country-specific strategies for entering emerging markets. In India, it will establish a comprehensive overseas expansion base, and in Brazil, it will expand K-beauty's online and offline entry. In Singapore, it will build a startup-specialized base and create a global venture fund (K-VCC), while in Europe, it will operate permanent K-brand pop-up stores. In Mongolia, it will promote entry support by leveraging distribution infrastructure such as local convenience store networks.
It will improve small and midsize businesses' access to policies. It will push integrated announcements of export support programs, simplify application documents, and provide AI-based customized recommendations for buyers and support programs, and it will establish a "24/7 grievance reporting center" to respond to the rapidly changing trade environment. As a legal basis to back small and midsize businesses' overseas expansion, it will also push for enacting the "Act on the Promotion of Overseas Expansion of Small and Midsize Businesses." It will strengthen cooperation with global networks such as the "APEC Startup Alliance."
No Yong-seok, first vice minister of the Ministry of SMEs and Startups (MSS), said, "For the current export performance to continue, it is important to further solidify the export base and growth foundation of small and midsize businesses," and added, "We will swiftly embed the four innovation strategies in the field and concentrate policy capacity to surpass the existing national agenda goal of $150 billion and achieve $180 billion in small and midsize business exports by 2030."