Jungjingong Fully Supports Structural Innovation Including Root Industry Business Transformation (Comprehensive)

Attendance by 8 Root Industry Companies Including Danjo and Heat Treatment Cooperatives
Providing Expert Consulting... Promoting Business, Digital, and Labor Transition
"SMEs Must Innovate and Build Resilience Amid Carbon Neutrality and ESG"

SME Central Association - Small and Medium Venture Business Promotion Corporation Structural Innovation Support Project Briefing Session [Photo by SME Central Association]

[Asia Economy Reporter Kwak Min-jae] “To assist companies facing difficulties due to changes in the external environment, the Ministry of SMEs and Startups, the Ministry of Trade, Industry and Energy, and the Ministry of Employment and Labor have newly launched the Structural Innovation Support Project this year as a cross-ministerial initiative.”

The Small and Medium Business Corporation (SBC) and the Korea Federation of SMEs held a ‘Structural Innovation Support Project Briefing Session’ on the afternoon of the 14th at the Korea Federation of SMEs in Yeouido, Seoul.

This year’s newly launched Structural Innovation Support Project by SBC targets small and medium enterprises (SMEs) facing rapid industrial environmental changes such as digitalization and carbon neutrality. The project integrates support for ▲ business transformation for new business entry ▲ digital transformation to enhance digital capabilities ▲ fair labor transition and employment stability for workers in transitioning industries.

The briefing session prioritized the root industries, which urgently require structural innovation. Eight SMEs and SME cooperatives from related sectors such as forging, heat treatment, surface treatment, and dyeing attended. Through the Structural Innovation Support Project, companies can receive systematic consulting that provides assistance in new product development, business area expansion, financing support, and digital transformation.

Jae-kyung Lee, head of the Structural Innovation Planning Team at SBC, who gave the keynote presentation, introduced the background, implementation system, and linked support of the Structural Innovation Support Project.

Mr. Lee explained, “Structural innovation may seem grandiose at first, but small changes are necessary when considering the project,” adding, “Diagnostic consulting is free of charge and can be easily applied for online.”

The scene of the briefing session on the structural innovation support project by the Korea Federation of SMEs and the Small and Medium Business Corporation
Photo by Korea Federation of SMEs

The Korea Federation of SMEs cooperatives urged SBC and the Korea Federation of SMEs to improve the Structural Innovation Support Project by reflecting voices from the field.

Kwon-tae Park, Executive Director of the Korea Forging Industry Cooperative, pointed out, “As the electric passenger car market grows, forging companies have no choice but to switch to parts for large vehicles, where electric vehicle adoption is relatively low,” adding, “In such cases, industry conversion is not allowed, so they cannot receive support such as financing for structural transition.”

Sang-oh Lee, Executive Director of the Korea Surface Treatment Industry Cooperative, stated, “Many surface treatment member companies have closed, decreasing from 400 to 260,” and argued, “Support should also be prepared for companies that have already closed due to failure to undergo structural transition.”

The briefing session was part of a cooperative effort among related organizations to proactively identify demand related to the Structural Innovation Support Project, discussed during a meeting between Kim Ki-moon, Chairman of the Korea Federation of SMEs, and Kim Hak-do, Chairman of SBC, held in January.

The Korea Federation of SMEs organized the briefing session to guide professional consulting and assist SME cooperatives and SMEs wishing to receive consulting, aiming to promote voluntary and proactive structural innovation among small and medium enterprises.

Hyung-duk Kang, Director of Manufacturing Innovation at the Korea Federation of SMEs, said, “As paradigms such as carbon neutrality, ESG, and digital transformation are changing with the times, our SMEs must innovate and enhance adaptability,” adding, “We will collaborate to ensure the Structural Innovation Support Project achieves results until the end.”

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