"Answers Lie in SME Sites"... TIPA Director Shouts 'Customer Satisfaction'

Lee Jae-hong, TIPA Director, Actively Visits Sites 1-2 Times Monthly Despite COVID-19
Growing Interest in SoBuJang Boosts Recognition... Actively Supports K-Quarantine Companies
This Year's Budget Up 50% from Two Years Ago... "Increased Internal and External Roles and Responsibilities"

Lee Jae-hong, President of the Technology Information Promotion Agency for SMEs (TIPA) (right), is visiting the root company "LC Power Korea" located in Ansan, Gyeonggi Province, and touring the production site.
[Photo by Technology Information Promotion Agency for SMEs (TIPA)]

[Asia Economy Reporter Lee Junhyung] The Small and Medium Business Technology Information Promotion Agency (TIPA) is a somewhat unfamiliar institution to the general public. Conversely, it is well-known among manufacturing-based small and medium enterprises (SMEs). TIPA plays a role in implementing key projects of the Ministry of SMEs and Startups, such as supporting SME research and development (R&D) and promoting smart factories, right at the frontline. The number of SMEs supported by TIPA in R&D and commercialization reaches thousands every year. This is why Director Lee Jaehong of TIPA frequently visits SME sites.

Director Lee consistently visits SME sites across the country. Although many site visits were canceled due to the impact of COVID-19, he still manages to visit once or twice a month.

According to surrounding staff, “Director Lee’s usual belief is that SMEs are TIPA’s customers, and he must actually listen to how these customers perceive and evaluate TIPA’s projects.” His preference for prioritizing field visits is clearly reflected in his career. Director Lee passed the 27th Technical Civil Service Examination and has held positions such as Director of Industrial Technology Policy at the Ministry of Knowledge Economy, International Cooperation Officer at the Ministry of Science, ICT and Future Planning, Venture Innovation Policy Officer at the Ministry of SMEs and Startups, Head of the Gwangju-Jeonnam Regional SME Office, and Director of the Small Business Policy Office at the Ministry of SMEs and Startups. Before entering public service, he also had experience working in a manufacturing company.

Director Lee also believes that “frequent visits to business sites are necessary to enhance policy effectiveness.” Since TIPA implements various projects such as ‘Green New Deal Promising Companies’ and ‘Top 100 Small and Medium Materials, Parts, and Equipment (SoBuJang) Companies,’ if the agency does not keep pace with companies, a gap will arise between policy and the field.

Lee Jae-hong, President of the Technology and Information Promotion Agency for SMEs (TIPA) (left), is visiting the SME 'AM Teukjang' located in Gwangju, Jeonnam, and talking with company officials.
[Photo by Technology and Information Promotion Agency for SMEs (TIPA)]

TIPA’s role has grown since the 2019 Korea-Japan conflict. The unilateral measures by Japan triggered the Korea-Japan trade dispute, increasing public interest in the domestic SoBuJang ecosystem, and companies supported by TIPA began to attract attention as well.

COVID-19 also became an opportunity to raise TIPA’s recognition. Small and strong companies in the medical and bio sectors supported by TIPA drew attention as ‘K-quarantine companies.’ Representative examples include Mak ICS, the only domestic manufacturer of ventilators; Seegene, a developer of COVID-19 diagnostic equipment; and Woossem, which localized the negative pressure carrier previously dependent on foreign imports. The fact that startups, a key segment of TIPA’s support, have recently established themselves as a pillar of the industry thanks to the second venture boom also had an impact.

The budget reflects the changed role. TIPA’s total budget for this year is about 1.8 trillion won, a 50% increase compared to 1.2 trillion won in 2019, two years ago. The number of employees, including the affiliated organization Smart Manufacturing Innovation Promotion Team (KOSME), reached 270 as of the second quarter of this year, 1.5 times more than the 180 employees in 2018. In particular, the budget for the ‘Strategic SoBuJang Support Project,’ one of TIPA’s SoBuJang support projects, increased about twofold to 28.5 billion won this year from 14.3 billion won last year.

A TIPA official said, “Since 2019, social interest in SMEs has increased, and the agency’s name has become well known,” adding, “As the national economy shifts to focus on strong SMEs, the agency’s domestic and international roles and responsibilities are gradually increasing.”

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