[Column] Minister's Sharp Warning: "Companies Must Also Prepare"

"To leap forward as a global company, internal preparation within the company is a 'must.'

On the 21st, at the CES 2025 award-winning companies meeting?the world's largest electronics and IT exhibition?Minister Oh Young-joo of the Ministry of SMEs and Startups said this to a startup CEO. It was in response to a complaint about difficulties in communicating with overseas venture capital (VC) representatives. The government will help where it can, but companies themselves must be prepared for communication necessary for overseas business.

The candid remarks from the minister of the main ministry that actively supported domestic startups' entry into the global market through CES prompt us to reflect on the reality behind the achievements Korean companies made at CES.

This year at CES, Korean companies achieved their best-ever results. A total of 151 companies received 208 innovation awards, sweeping nearly half?45%?of the total 458 innovation awards. Notably, 127 of the award-winning companies were SMEs and startups, accounting for 85% of all domestic companies, showing remarkable performance. The fact that most companies participated in support programs from the Ministry of SMEs and Startups also adds significance.

However, cases where CES achievements have actually led to investment attraction remain scarce. According to a survey by Startup Alliance of startups that won innovation awards at CES one year ago, out of 116 companies, only one secured overseas investment last year. Companies that received domestic investment from domestic VCs or corporate venture capital (CVC) numbered only 20.

Only 21 startups?18% of the total?that won innovation awards attracted investment within one year. This starkly contrasts with the enthusiasm many companies show for participating in CES.

International stages like CES are undoubtedly important venues where SMEs and startups, whose business foundations are still fragile, can meet overseas investors directly. However, companies must solve on their own the challenge of acquiring the necessary capabilities, including communication skills essential for success in the global market.

Rather than being satisfied with the superficial achievement of winning innovation awards, proactive and strategic preparation at the company level to translate these into actual business results is essential. Preparation for what comes after participation, not just the participation itself, is crucial.

It is natural to urge the government to devote various efforts to building an ecosystem for our companies' global leap. However, companies need to keep in mind that large and small events, including CES, are only the starting point of the path, and subsequent results must be created by themselves. The pointed admonition from the head of the main ministry, who must have been more encouraged than anyone by the achievements of our SMEs, is therefore worth reflecting on deeply.

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