With US$ 8 billion budget this year, Korea pushing its SMEs, startups go global, enter India
For this Korea SME & Startup Agency 중소벤처기업진흥공단 (KOSME) has joined hands with NSIC, and FITT-IIT Delhi to promote small and mid-size enterprises and startups in both the countries.
NEW DELHI: Impressed by the futuristic growth of India as predicted by the global watchdogs pitching India to be the world’s 2nd or 3rd biggest economic superpower by 2030, South Korea is working hard to support its small and mid-size enterprises (SMEs) and startups to enter India.
A good number of Korean SMEs are eager to enter India keeping in mind India’s attractive factors such as huge consumption market of 1.4 billion people, excellent human resources pool, present and potential economic growth rate, etc. Currently, there are a total 837 Korean companies situated in India but most of these are large, and medium ones. However, the number of SMEs in India is yet not satisfactory.
Korea has provisioned for a budget of about US$ 8 billion (10.2 trillion won) this year, and also launched various SMEs support projects such as policy funds, marketing, consulting, and training through its Korea SMEs and startup agency 중소벤처기업진흥공단 to ensure that the SMEs based in Korea step out and expand their operations worldwide with prime focus on India.
“India is attracting the world’s attention with an average annual economic growth rate of 7% and the world’s 3rd largest GDP potential. Many small and medium-sized venture companies in Korea are eager to enter India as it has a huge consumption market of 1.4 billion and excellent human resources. India’s excellent economic growth rate record (2015) 8.0% 2016) 8.3% (2017) 6.8% (2018) 6.5%, (2019) 3.7%, (2020) -6.6%, and (2021) 8.7%, “ said Hakdo Kim, President of the Korea SMEs and Startups Agency, generally called KOSME – an offshoot of the Ministry of SMEs and Startups of South Korea.
Kim Hakdo, was in India recently to sign a memorandum of understanding with the National Small Industries Corporation and FITT-IIT Delhi to promote cooperation with India in the field of SMEs and startup respectively.
A MoU for cooperation in SME sector was signed by Ms. Mercy Epao, CMD-NSIC & JS-SME, Ministry of MSME and Kim Hakdo, President, KOSME, South Korea in the presence of B.B. Swain, Secretary (MSME) on 27th Februaryat Ministry of MSME, Udyog Bhawan, New Delhi.
Also read: FITT-IIT Delhi, Korea SMEs & Startups Agency KOSME to push innovation, startup ecosystems jointly
Kim said, “India’s economic development can be attributed to the SMEs, which account for 99% of Indian companies and 50% of India’s exports. Clearly they play an important role in India’s economic growth. India is attracting the world’s attention with an average annual economic growth rate of 7% and the world’s 3rd largest GDP potential. Therefore, in the current scenario, to support SMEs in both the countries it is meaningful that KOSME and NSIC signed a business agreement.”
The objective of this MoU is to exchange information on best practices in MSME sector and create reliable business alliances between the MSMEs of India and South Korea as well as to cooperate for improving the competitiveness of Indian and Korean MSMEs in global markets through technical collaborations.
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Established in 1979, the KOSME is a comprehensive support organisation for Korean SMEs, with about 1,500 employees, 27 overseas branches in 17 countries, 33 regional headquarters, 17 Youth Startup Academies and 6 training centres. In addition, since 2015, KOSME have been promoting overseas technology exchange projects with 27 countries to encourage export for Korean SMEs with excellent technology.
NSIC and KOSME had established the India-Korea Technology Exchange Center (IKTEC) in 2018 and carried out technology exchange cooperation programs online and offline every year.
Not only that, but it also contributed greatly to exchanges between small and medium-sized enterprises of both countries, such as providing business matching and holding technical exchange seminars.
Through this business agreement, we hope that NSIC and KOSME will cooperate with each other to create new business opportunities in various fields.
Dr. Rajneesh (AS & DC) MSME, Kartikeya Sinha, Director (P&M), NSIC, Sunil Tyagi, GM-SG (IC), NSIC, Santosh Kumar Verma, Deputy Secretary, Ministry of MSME, Ms. Adiba Bari, Manager (IC), NSIC, Anupam Tiwari, Manager (IC), NSIC and Shashank Shekhar, Asst. Manager (IC), NSIC and other senior officials of KOSME were also present on the occasion.
