SME Group Leaders' Holiday Keyword is 'Yeolgong'

Kim Ki-moon, Analysis of Non-face-to-face Economy Impact
Ahn Geon-jun, Seeking Strengthening of Local Venture Competition
Jo Hong-rae, Study on Digital Transformation in Manufacturing Industry

From the left, Kim Ki-moon, President of the Korea Federation of SMEs, Ahn Geon-jun, President of the Korea Venture Business Association, and Cho Hong-rae, President of the Innobiz Association.

[Asia Economy Reporter Kim Daeseop] Heads of small and medium-sized enterprise (SME) organizations have decided to forgo the holiday this Chuseok and focus on intensive study plans to prepare for the post-COVID-19 era. While participating in the government's stringent social distancing measures to prevent the spread of the novel coronavirus (COVID-19), they plan to find breakthroughs to resolve the management difficulties faced by SMEs due to the economic downturn.

Kim Gi-moon, Chairman of the Korea Federation of SMEs, plans to spend most of this Chuseok holiday at home reviewing various materials and reports on economic issues. In particular, he will focus on social and economic changes caused by COVID-19, such as the non-face-to-face (untact) economy and the expansion of live commerce, while seeking ways to overcome the SME crisis and strengthen competitiveness.

SMEs are experiencing significant management difficulties as their financial conditions continue to deteriorate due to domestic demand stagnation caused by COVID-19, increased external uncertainties, sluggish investment, and export downturns. According to the recent "SME Business Outlook Survey" conducted by the Korea Federation of SMEs targeting 3,150 SMEs, the Business Outlook Index (SBHI) for October this year was 71.2, down 15.1 points compared to the same month last year.

Considering the social atmosphere, Chairman Kim decided not to gather with relatives for ancestral rites this year. He plans to visit his hometown, Jeungpyeong, Chungbuk, with his wife only on Chuseok day, October 1. While the family and relatives usually gather for ancestral rites every Chuseok, this year they decided to spend it differently to prevent the spread of COVID-19.

Ahn Geon-jun, Chairman of the Korea Venture Business Association, plans to spend the Chuseok holiday at the CrucialTec office in Pangyo, Gyeonggi Province. Except for the time spent paying respects at the Sian Family Memorial Park in Gwangju, Gyeonggi on Chuseok day, he will go to work every day. He plans to explore ways to strengthen the competitiveness of local venture companies, which are relatively less active compared to the metropolitan area. In particular, he will look into ways to revitalize the venture ecosystem in the southeastern region during the holiday period.

Chairman Ahn will also review the new business promotion plans of CrucialTec, a biometric sensor specialist company he operates. CrucialTec has completed financial restructuring over the past two years and laid the groundwork for a new leap forward. It has resolved cash liquidity issues to improve financial soundness and has been increasing the supply of its main products to global companies since early this year, showing business achievements.

Cho Hong-rae, Chairman of the Korea Association of Innovative SMEs (Inno-Biz Association), plans to visit his hometown alone on Chuseok day. During the rest of the holiday, he will devote himself to studying the digital transformation of manufacturing.

Chairman Cho founded and operates Korea Dokimec, which produces pneumatic devices, cylinders, and industrial robots. In the current situation where B2B (business-to-business) manufacturing, which relies mainly on face-to-face sales, is struggling due to COVID-19, securing competitiveness through untact and digital transformation is an important task. Chairman Cho is also considering ways to reset marketing directions for manufacturing in preparation for the post-COVID-19 era.

Chairman Cho said, "I think I will spend this Chuseok holiday with deep thoughts and many concerns," adding, "I am continuing to ponder the sustainable growth of future companies while reading a book called Long-Term Thinking."

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