This file photo, taken March 14, 2018, shows office buildings in Seoul’s Gangnam district. (Yonhap)
SEOUL, Jan. 16 (Korea Bizwire) — South Korea will earmark 1.5 trillion won (US$1.22 billion) over the next 10 years for research and development projects aimed at nurturing second-tier, high-potential companies into global players and boost their exports, the industry ministry said Monday.
It is part of the government’s comprehensive plan to boost the number of medium-sized and promising companies to 10,000 and their exports to US$200 billion by 2030 so as to create fresh growth momentum.
As of 2021, South Korea had some 5,480 second-tier firms, and the value of their exports combined stood at $113.8 billion.
Under the current law on the three-tier corporate classification by size, companies with total assets of between 500 billion won and 10 trillion won are labeled medium-sized, high-potential firms.
Businesses having assets of 500 billion won or under are considered to be small and midsized firms, and those with more than 10 trillion won in assets are deemed large conglomerates.
According to the plan, the government will invest 1.5 trillion won by 2033 in technology development projects to help their advancement into the global market, the transition to digital systems and the stabilization of supply chains, according to the Ministry of Trade, Industry and Energy.
Of the amount, 913.5 billion won will be spent on making 150 leading exporters through R&D and various financial supportive tools, and 585.5 billion won will be earmarked for nurturing companies with a competitive advantage in terms of global supply chains.
In the first half of this year, the government also plans to create funds of 100 billion won to back midsized firms’ activities for innovation.
“We will designate 100 promising small companies per year over the next decade to provide them with extensive assistance to help them join the ranks of midsized firms,” the ministry said in a release.
“We will push for deregulation and set up a task force to resolve difficulties companies have over the course of their investments and business activities,” it added.
Last year, 205 midsized companies grew to earn the status of large conglomerates. The number of smaller firms that joined the ranks of medium-sized firms came to 467, according to government data.
(Yonhap)
