Jungjingong Supports 40 Companies in 'Entering the Online Overseas Procurement Market'

Step-by-Step Support Until Actual Contract Achievement

Panoramic View of the Small and Medium Business Corporation

[Asia Economy Reporter Kim Daeseop] The Small and Medium Business Corporation (SBC) announced on the 18th that it will newly launch an online overseas procurement market entry support project in collaboration with the Public Procurement Service and the Korea Chemical Convergence Testing Institute.

This project is designed to support small and medium-sized venture companies facing difficulties entering overseas procurement markets due to high entry barriers such as lack of information, language limitations, and legal issues.

On the 16th, SBC finalized the selection of 40 companies to participate in this project. A total of 203 companies applied, recording a competition rate of 5.1 to 1. The selected companies will receive step-by-step support from enhancing their understanding of overseas procurement markets to achieving actual contracts.

In the first phase, customized education will be provided to each company to raise interest and understanding. Specialized consulting will support the establishment of entry strategies. Additionally, by linking with the Public Procurement Service’s G-PASS company designation project, the formation of overseas networks for each target market will be assisted. For companies requiring overseas certification acquisition, support will be linked with the Korea Chemical Convergence Testing Institute’s overseas standard certification acquisition support project.

In the second phase, based on the strategies established in the first phase, support will be provided for the production of marketing kits such as promotional videos and electronic catalogs. Through online overseas procurement exhibitions and video consultation meetings, buyers (consortium partners) who will enter the target markets together will be matched.

Customized bidding information and professional translations of procurement regulations (such as the U.S. Federal Acquisition Regulation) will also be provided. Furthermore, in connection with the Public Procurement Service’s export strategy company development project, support will be provided for discovering overseas procurement projects, bidding, contracting, and delivery.

The overseas procurement market is a huge market, but the proportion of Korean companies entering it remains low. According to SBC, as of 2018, Korean companies accounted for only 0.27% (about $1.5 billion) of the U.S. federal procurement market (approximately $54.5 billion) and 0.85% (about $150 million) of the UN procurement market (approximately $18.8 billion).

Kim Hakdo, Chairman of SBC, said, "We will provide comprehensive support from customized education and consulting to in-depth marketing so that excellent domestic small and medium venture companies’ products can enter overseas procurement markets." He added, "We will closely cooperate with related organizations such as the Public Procurement Service and the Korea Chemical Convergence Testing Institute to help companies pioneer new export routes through overseas procurement markets."

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