Kwangcheon Jung, President of Inno-Biz Association: "Building an Inno-Biz Ecosystem to Lead Globally in the AI Era"

Strengthening Support for SMEs to Grow into Mid-Sized and Global Companies
Addressing AX Costs and Talent Shortages for Physical and Vertical AI
K-Defense Exclusion Issues: "We Will Help Inno-Biz Companies Enter the Sector"

"We will create an Inno-Biz ecosystem where technological innovation drives a virtuous cycle of job creation and growth."

On March 16, Kwangcheon Jung, President of the Inno-Biz Association (Korea Association of Innovative Enterprises in Technology), stated in an interview with The Asia Business Daily, "The association will actively support AI transformation (AX), commercialization-driven research and development (R&D), and global expansion so that small and medium-sized enterprises (SMEs) can grow into mid-sized and global companies."

Over the past two years, President Jung has focused on expanding contact points with the government, the National Assembly, and major institutions to strengthen the external status of Inno-Biz, which refers to technology-innovative SMEs. At the same time, he has worked to expand the foundation for cooperation among member companies, mainly through committees dedicated to artificial intelligence (AI) and global strategies. While the association’s AI and global strategies were previously limited to declarative statements, his plan is now to concentrate on connecting these strategies to actual projects and tangible results.

Kwangcheon Jeong, President of the Inno-Biz Association, is being interviewed by The Asia Business Daily at his office in Pangyo, Seongnam, Gyeonggi Province. Photo by Hyunmin Kim

President Jung identified 'physical AI,' represented by robots, and 'vertical AI,' which solves problems by combining industry-specific expertise, as the core topics of the AI era. However, he pointed out that in the field, the high cost of adoption and the shortage of skilled professionals are significant barriers when promoting AI transformation (AX) in response to these trends.

He suggested 'technology finance' as a solution to funding challenges. The association is currently operating a technology evaluation and certification team composed of about 30 experts, mainly from the Korea Technology Finance Corporation, to assess, certify, and recertify the technological value of companies. Through this, they are lowering the barriers to loans and investment from financial institutions. Additionally, based on cooperation with the KONEX Association, they plan to help companies broaden their access to growth capital through IPOs (initial public offerings).

Regarding the shortage of AI professionals, he said, "Utilizing external specialist companies can be a practical alternative," adding, "We have recently cooperated with NC AI to introduce industry-customized AX programs and are providing comprehensive support so that companies can implement their own AX." He further explained that the association's initiatives for AI workforce training and R&D, in collaboration with the Ministry of SMEs and Startups, are an extension of these efforts. Such support policies are expected to help adjust and supplement the varying speeds of AX adoption by individual companies.

President Jung has recently identified the defense industry as a new growth engine and global driver for Inno-Biz. With the outbreak of the US-Iran war following the Russia-Ukraine war, global attention is turning to strengthening defense capabilities. He believes that domestic technology-based SMEs can play a crucial role in the growth of the so-called 'K-Defense' sector.

He stated, "Although the defense industry may appear to be dominated by large companies, SMEs play a significant role in key technology areas." According to the association, approximately 31% (26 out of 85) of the defense companies designated by the Defense Acquisition Program Administration and about 66% (55 out of 83) of defense innovation companies have already been certified as Inno-Biz companies.

Accordingly, the association is strengthening its role as a bridge to expand the entry of Inno-Biz companies into the defense market. President Jung said, "To support outstanding companies that have not yet entered the defense sector, we recently signed a business agreement with major defense companies," adding, "We will continue to seek win-win solutions in cooperation with relevant ministries in the future."

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