Mid-sized Companies, Compete Globally... Comprehensive R&D, Workforce, and 4.5 Trillion KRW Financial Support

Jointly Hosted by Ministry of Industry and Financial Services Commission, Attended by Over 200 Mid-sized Companies
World Class 300, Special Program to Promote 4.5 Trillion KRW Facility Investment Explained

[Asia Economy Reporter Moon Chaeseok] The government announced that it has prepared a comprehensive support plan covering research and development (R&D), business diversification, manpower, and finance to enable our mid-sized enterprises to freely compete on the global stage this year.

The Ministry of Trade, Industry and Energy, together with the Financial Services Commission, Korea Federation of Mid-sized Enterprises, and Korea Development Bank, will hold a policy briefing session for mid-sized enterprises at 2 p.m. on the 31st at the Sangjanghoesahoe Building in Daehyeong-dong, Mapo-gu, Seoul, where they will make this announcement.

About 200 stakeholders, including Kang Hogap, chairman of the Korea Federation of Mid-sized Enterprises, mid-sized businesspeople, and representatives from Korea Development Bank, Industrial Bank of Korea, Export-Import Bank of Korea, Korea Institute for Advancement of Technology (KIAT), Korea Trade-Investment Promotion Agency (KOTRA), and the Materials Parts Supply Response Support Center, will attend the briefing.

The session will explain mid-sized enterprise exclusive support projects such as the World Class 300 R&D program to strengthen competitiveness and promote growth, mid-sized enterprise export voucher support, and the Korea-Germany Materials and Parts Technology Cooperation Center.

They will also explain the special financial support program to promote facility investment worth 4.5 trillion won announced in this year’s economic policy direction, and listen to the opinions of mid-sized enterprises.

Measures to strengthen the competitiveness of mid-sized enterprises in materials, parts, and equipment will also be explained. Materials and parts mid-sized enterprises account for 902 companies, or 86% of the total 1,053 companies (based on 2018 sales assets).

First, R&D funds and professional manpower will be supported for World Class 300 companies, mid-sized-small consortia, and regional materials mid-sized enterprises to help develop core technologies and enhance technological competitiveness.

Overseas marketing expenses will be supported in the form of vouchers. World-class products and manufacturing companies will be given preferential treatment.

Support measures such as consulting and application of regulatory exemptions will be provided to mid-sized enterprises seeking business transformation. Various collaboration models will be explored with industry-specific councils and specialized research institutions.

A Korea-Germany Materials and Parts Technology Cooperation Center, a global technology cooperation hub, will be established in Germany to help form technology cooperation with European research institutes, universities, and companies.

Support will be provided for education to secure specialized manpower for mid-sized enterprises, attract excellent talent, and strengthen the capabilities of current mid-sized enterprise employees.

To promote investment, 4.5 trillion won will be contributed to provide loans for new facility investment funds. Korea Development Bank and Industrial Bank of Korea will each contribute 2 trillion won, and the Export-Import Bank of Korea will contribute 500 billion won.

The Ministry of Trade, Industry and Energy views mid-sized enterprises as the backbone of our economy that creates quality jobs and leads innovative growth. It will emphasize that this year is a crucial period that will determine the achievements of mid-sized enterprises over the next decade.

Earlier this year, the ministry announced the '2nd Basic Plan for Mid-sized Enterprise Growth Promotion,' a five-year comprehensive plan under the Mid-sized Enterprise Special Act to enhance growth and competitiveness of mid-sized enterprises.

An official from the ministry stated, "We plan to faithfully listen to industry opinions through meetings between the Korea Federation of Mid-sized Enterprises and Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy held on the 15th, as well as sector-specific meetings with mid-sized enterprises continuing until next month, to prepare a ten-year plan for mid-sized enterprises."

This content was produced with the assistance of AI translation services.