Daesang Small and Medium Enterprise Agriculture and Fisheries Cooperation Foundation Supports Market Access for SME Products through Public Sector Performance Sharing System

Expanding Market Access for SME Technology Development Products through Public Sector Direct Contracts

[Asia Economy Reporter Kim Heeyoon] As the importance of ESG management has recently emerged, the small and medium enterprise (SME) market support model through the performance-sharing system of the Foundation for Cooperation between Large, Medium, Small Enterprises and Agriculture and Fisheries is gaining attention.

According to the industry on the 21st, a common area of interest among major companies in ESG management is ‘co-growth with partner companies.’ According to the 2020 Social Value Report of Major Companies by the Federation of Korean Industries, 23.9% of all respondents selected ‘co-growth with partner companies’ as the main focus area of social contribution activities.

Accordingly, attention is focused on the performance-sharing system, a representative project for co-growth through win-win cooperation. This system creates performance through joint innovation activities such as new technology development and cost reduction between principal and subcontracted companies, and shares the results in a pre-agreed manner.

Public institutions have introduced and are operating a private contract system to support SME market access through the performance-sharing system. The Cooperation Foundation explained that through private contracts, purchases worth approximately 288.6 billion KRW were made from 267 SMEs across 37 public institutions.

The development of the storage system by Korea Rural Community Corporation and Bom Ecotech is cited as a representative case of continuous performance sharing between public institutions and SMEs.

The Corporation and Bom Ecotech succeeded in developing customized technology considering Jeju Island’s terrain characteristics and landscape by improving the shortcomings of existing storage tanks through the project ‘Development of Jeju Island Specialized Lightweight Modular Storage System.’ Identifying inefficiencies such as the high cost of existing storage systems, the Corporation and Bom Ecotech proceeded with a water storage technology development project suitable for the Jeju region environment.

Through this project, the Corporation expects about a 30% reduction in installation costs compared to existing systems. Bom Ecotech generated sales of 683.5 million KRW through the private contract.

A representative from Bom Ecotech stated, “The performance-sharing project has made it easier to promote our products and develop sales channels,” adding, “We are currently developing new technologies and construction methods to apply the technology developed through the performance-sharing system to related businesses.”

Seoul Metro and Yap Company also developed a mobile service through the performance-sharing system. Through the ‘ICT-based Mobile Service R&D for Transportation Vulnerable Groups,’ the Corporation and Yap Company built and pilot-operated mobile services at three subway stations (Gunja, Singeumho, Sinyongsan), enhancing usability by reflecting the opinions of the Korea Blind Union.

This service currently provides arrival station notifications and real-time train operation information via text and voice through Seoul Metro’s ‘Ttota Subway’ mobile app. It is evaluated to have improved mobility convenience by adding features specialized for transportation vulnerable groups (visually impaired).

Through the development of the mobile service for transportation vulnerable groups, Seoul Metro signed a private contract worth 741 million KRW with Yap Company to share the results.

A Seoul Metro official stated, “The mobile service for transportation vulnerable groups is expected to be expanded to spaces requiring mobility support,” and added, “We will continue to strive to secure mobility rights for people with disabilities.”

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