Mid-sized Ombudsman Expands Support for Non-consumer Goods Companies' Online Platforms

Held 'Overseas Market Entry Companies Regulation Improvement Meeting' with Busan Export Companies
Discussed Support Measures Including SME Freight Support and Increased Shipping Space Allocation

Jubong Park, Small and Medium Business Ombudsman (Vice Minister level).
[Photo by Asia Economy DB]

[Asia Economy Reporter Kim Jonghwa] The Small and Medium Business Ombudsman announced on the 18th that it held a 'Regulatory Improvement Meeting for Overseas Market Entry Companies' at the Park Hyatt Hotel in Busan in collaboration with KOTRA.

This meeting was organized to hear the on-site voices of export SMEs struggling due to the prolonged COVID-19 pandemic. Six export companies from the Busan area and officials including the head of the Busan branch of the Korea International Trade Association attended to listen to the companies' difficulties and suggestions.

A CEO of a manufacturing company, Mr. A, said, "As a COVID-19 response measure, developing sales channels through online platforms is important, but currently, the online platform entry support projects mainly focus on consumer goods in business-to-consumer (B2C) transactions," adding, "Please expand opportunities for non-consumer goods manufacturing companies to enter online platforms."

In response, Vice Minister-level Ombudsman Park Joobong said, "We have agreed to negotiate with the Busan Center for Creative Economy and Innovation to increase the selection ratio of non-consumer goods in the 'Alibaba.com Entry Support Project,'" and added, "We also requested Busan City to re-promote the 'Internet Trade Support Project,' which supported business-to-business (B2B) online platform entry and ended in 2016. We will strive to expand support for non-consumer goods manufacturing SMEs."

A CEO of a wholesale goods company, Mr. B, said, "Due to COVID-19, the reduction in aircraft and ship operations has caused freight transportation costs to rise sharply," and requested, "Support policies for the soaring export transportation costs are needed."

Ombudsman Park responded, "At the 'Export-Import Logistics Issues Review and Win-Win Council' held by the Ministry of Trade, Industry and Energy last April, discussions were held on additional support measures such as SME freight support and expanded allocation of shipping space," and said, "We will continue to consult with related ministries."

He further explained, "The Ministry of SMEs and Startups is collaborating with the national shipping company (HMM) to provide cargo space on ships bound for the U.S. and Europe," and introduced systems that companies can utilize, saying, "We support air and sea freight costs through the online export joint logistics and export voucher projects."

Additionally, various difficulties caused by regulations were discussed, including simplification of reapplication documents for KOTRA branch projects, support for certification costs for multi-variety small-quantity production products, and expansion of support for SME data purchase costs.

Ombudsman Park said, "We will continue to communicate with export companies to promptly resolve regulatory difficulties that hinder economic growth and enhance the vitality of Korea's exports." The two organizations plan to hold 'Regulatory Improvement Meetings for Overseas Market Entry Companies' quarterly until the end of the year, visiting major export hub cities such as Daejeon, Jeonju, and Daegu.

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