This Year, 118.9 Billion Won Support for 'World Class 300' Companies and Others... "Full Effort to Secure Liquidity Amid COVID-19"

852 Billion KRW Support for World-Class Companies' Technological Innovation

9 Trillion KRW Invested from 2021 to 2023
Follow-up to the 'World-Class Plus Project'

Government: "Full Effort to Secure Short-Term Liquidity and Support Supply-Demand Stability Amid COVID-19"

Photo by Jinhyung Kang
The photo shows Seong Yun-mo, Minister of Trade, Industry and Energy, greeting attendees at the 'Ministry of Industry-Mid-sized Business Federation Chairman's Faith Meeting' held on the 15th of last month at the Palace Hotel in Seocho-gu, Seoul.

[Asia Economy Reporter Moon Chaeseok] The government announced that it will provide 118.9 billion KRW in support this year to outstanding mid-sized and small but strong enterprises, including 'World Class 300' companies. It is making every effort to alleviate the short-term liquidity decline caused by the COVID-19 virus. The World Class 300 companies are designated by the government to foster world-class export companies.

On the 14th at 2:30 PM, Sung Yun-mo, Minister of Trade, Industry and Energy, will hold a meeting with World Class 300 companies at Lotte Hotel Seoul to announce these details.

Support will be provided for practical work in mid-sized and small but strong enterprises, including technology development (R&D), exports, and workforce projects. First, 85.2 billion KRW will be allocated this year to support technological innovation in World Class companies. To minimize the gap in new R&D support caused by the sunset of the World Class 300 project last year, a 5.6 billion KRW bridge project will be newly established this year.

The 'World Class Plus Project' will be promoted as a follow-up to the World Class 300 project. From 2021 to 2033, over 12 years, 913.5 billion KRW (46.35 billion KRW from the government, 45 billion KRW from the private sector) will be invested to nurture 150 mid-sized and prospective companies. It passed the feasibility study in October last year.

This year, 22 billion KRW will be provided to strengthen the export capabilities of mid-sized companies. Among workforce projects dedicated to mid-sized companies, 1.6 billion KRW will be allocated for the growth of core research personnel, and 1.4 billion KRW for attracting and nurturing excellent talent.

Plans are in place to discover cooperation models between material, parts, and equipment demand and supply companies and to select specialized leading companies to nurture more than 50 mid-sized companies specializing in materials, parts, and equipment with global competitiveness.

At the meeting, participating companies are expected to request active government support, as prolonged COVID-19 is anticipated to cause management difficulties such as sluggish sales and cash liquidity shortages.

In response, Park Jong-won, Director of Mid-sized Enterprise Policy at the Ministry of Trade, Industry and Energy, stated, "To minimize the impact of this situation on exports and the supply of materials and parts, we will establish a public-private joint emergency response system and concentrate all capabilities on resolving corporate difficulties, securing short-term liquidity, and supporting supply stability with full force."

The Korea Trade-Investment Promotion Agency (KOTRA) operates a 'COVID-19 Emergency Response Team' to address difficulties faced by companies operating in China. The Korea International Trade Association has established an 'Export Difficulty Resolution Support Center' to manage issues faced by export companies to China. A public-private joint material and parts supply response support center is also in place.

Additionally, companies are expected to propose the need for ▲support for domestic development of core technologies in materials, parts, and equipment through cooperation between small and mid-sized enterprises ▲expanded financial support to activate investment ▲and the establishment of communication platforms to expand collaboration among companies in similar industries.

Director Park responded, "We will actively discover excellent cooperation models in materials, parts, and equipment, support technology development and finance, and form industry-specific councils for mid-sized companies to support expanded collaboration among companies."

The meeting will also share the progress of issues and proposals raised by companies through industry-specific councils for mid-sized companies from last month to this month. Currently, 33 cases across 8 industries have been received; 2 have been resolved, 5 have been guided on regulations, and 24 are under implementation or detailed review.

Director Park emphasized, "World Class 300 companies are a core group leading our economy in industrial competitiveness, regional economy, exports, and job creation."

He added, "The Ministry of Trade, Industry and Energy will strengthen support in R&D, exports, workforce, and finance so that mid-sized and small but strong enterprises can leap forward as global specialized companies competing in the world market. We will regularly operate industry-specific councils and meetings as a grievance channel for mid-sized companies every quarter to help resolve difficulties."

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