Supporting SMEs to Enter New Markets Using Russian Source Technology... 400 Million Won Support Over 2 Years

[Asia Economy Reporter Kim Bo-kyung] A government project utilizing Russian demand and supply technologies to assist small and medium venture enterprises (SMVEs) in product development and new market entry is being promoted. Companies finally selected can receive up to 400 million KRW in government grants for up to two years.

The Korea Technology and Information Promotion Agency for SMEs (TIPA) announced on the 7th that it will open the 2021 Overseas Original Technology Commercialization Technology Development Project and recruit participating SMEs from March 8 to April 21.

This project was newly established last year under the government’s New Northern Policy. It is a technology development support project aimed at commercialization by domestic SMVEs utilizing Russian demand and supply technologies.

The project is divided into the 'Supply Technology Development Type,' where domestic SMEs develop commercialization technologies by receiving original technologies from Russia, and the 'Demand Technology Development Type,' which develops customized technologies according to local demand in Russia.

Eligibility requires SMVEs that have secured a letter of intent for technological cooperation from Russian companies possessing the demand or supply technologies announced in the public notice.

A letter of intent for technological cooperation refers to a document expressing the willingness between domestic SMEs and Russian institutions (companies) for technology transfer, introduction, and purchase of products or technologies.

Companies finally selected through the evaluation process can receive government grants of up to 400 million KRW within two years.

In particular, according to special guidelines for SME technology development support projects responding to COVID-19, the private sector’s contribution has been reduced from 35% to within 20% of the total project cost.

This year, the overview of Russian demand and supply technologies is simultaneously provided in English to support smooth technology exploration. To resolve communication difficulties in technological cooperation due to language barriers between Korea and Russia, communication support will also be provided through commercialization support institutions (Korea Institute of Industrial Technology Han-Russia Innovation Center).

Considering the COVID-19 situation and the nature of international cooperation projects, the usual announcement period of about one month has been extended to approximately 12 weeks to minimize inconvenience for SMEs.

Lee Jae-hong, President of the Korea Technology and Information Promotion Agency for SMEs, said, "Although economic activities worldwide are difficult due to COVID-19, I hope that SMVEs will turn this crisis into an opportunity through new challenges."

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