Ministry of SMEs and Startups Opens Korea's First 'Small Business Complex Support Center' in Gongju

The nation's first 'Small Business Complex Support Center' located in Gongju, Chungnam.
[Photo by Ministry of SMEs and Startups]

[Asia Economy Reporter Lee Junhyung] On the 9th, the Ministry of SMEs and Startups announced that it opened the country's first 'Small-scale Manufacturers Complex Support Center' in Gongju, Chungnam, and held an opening ceremony. The ceremony was attended by Kwon Chil-seung, Minister of SMEs and Startups, Yang Seung-jo, Governor of Chungnam Province, and Kim Jeong-seop, Mayor of Gongju. Small-scale manufacturers are small manufacturing companies with fewer than 10 employees.

The Small-scale Manufacturers Complex Support Center is an institution that fosters regionally specialized industries and supports the innovative growth of small-scale manufacturers. Since 2019, the Ministry of SMEs and Startups has supported the establishment of these centers to enable small-scale manufacturers to smoothly carry out business processes such as research and development, manufacturing, exhibition, and sales. Currently, centers are being established in five local governments nationwide, including Gongju in Chungnam, Hwaseong in Gyeonggi, Yeongju in Gyeongbuk, Jungnang-gu in Seoul, and Mapo-gu in Seoul.

The newly opened Gongju Complex Support Center was created by remodeling three buildings of the 'Korea Textile Smart Process Research Institute,' owned by Gongju City. According to the Ministry of SMEs and Startups, a total project cost of 5.61 billion KRW, including 2.5 billion KRW in national funds, was invested.

This center is equipped with more than 30 types of equipment necessary for textile manufacturing and testing analysis, as well as shared business spaces such as joint sales areas and workshops. Textile companies in Gongju have often outsourced fabric dyeing, processing, and sewing work to distant places like Ansan in Gyeonggi and Dongdaemun in Seoul. The Ministry of SMEs and Startups explained that by utilizing the shared equipment at the Gongju Complex Support Center, these companies are expected to significantly reduce logistics costs.

In Gongju, the proportion of workers engaged in the textile industry among all industrial workers is 3.5%, about twice the national average of 1.9%. Although the textile industry has a considerable impact on the local economy and employment, most companies supply products through subcontracting or Original Equipment Manufacturer (OEM) methods, resulting in low added value.

The Ministry of SMEs and Startups expects that small-scale manufacturers in the Gongju area will form a 'value chain' based on the Complex Support Center, enabling them to develop their own products and jointly produce them. It is analyzed that the current subcontracting and processing-centered regional textile industry structure can transform into a high value-added industry focused on finished product production and sales.

Kwon Chil-seung, Minister of SMEs and Startups, said, "Small-scale manufacturers are the roots of all industries and the capillaries of manufacturing," adding, "We will continue to discover customized policies and expand specialized support budgets to strengthen the manufacturing competitiveness of small-scale manufacturers."

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