PowerPoint Template

Hyun Suk ShimGeneral Manager of Global Cooperation DepartmentSmall & medium Business Corporation

August 25, Seoul Korea

APEC SME Innovation center & SME support programs in korea1

Contents

2 VisionPromote economic activities and co-prosperity in the APEC region by strengthening the innovation capacity of SMEs

RoleProvide workshops and seminars for innovation capacity buildingDevelop and disseminate SME innovation modelsEstablish cooperative networks for SME innovationVision & Role3History42009 activities < Raphael Legacy Design Inc.>

Dispatch management and technology specialists to SMEs of APEC member economies

Provide customized solutions based on on-site diagnosis and consulting utilizing Comprehensive Diagnosis Tool of SBC

2009 activities

SME Consulting6

Organize face-to-face business meetings in key fields to generate practical cooperation benefits among APEC member economies2009 activities SME Business Matchmaking7 SME e-Business CooperationProvide a platform for e-business and information sharing through the linking of relevant APEC member websites

2009 activities8 APEC SME Innovation BriefingPublish semiannual newsletter and disseminated through webmail to APEC SMEWG members.

2009 activities SMEIC Website InnovationProvide information on innovation activities of SMEs in APEC region through the APEC SMEIC portal (www.apec-smeic.org)

9 Who we areNon-profit government agency

What we doEffectively implement government policies and programs for the sound growth and development of SMEsProvide a wide range of services including finance, consulting, training, marketing and international cooperation

Employees : 761

Budget(2009) : US$ 9.5 Billion Overview of sbc

10

FY2009 Budget: US$ 9.5 billion

Sbc funding & budgetRevenueGovernment ContributionUS$0.44 billionBond IssuingUS$ 6.67 billionRepayment, Interest and other incomeUS$ 2.39 billionTotalUS$ 9.5 billion11Date ActivitiesJan 1979SBC establishedSep 1979Overseas Office opened in Europe (79), Japan (83), USA (83), China (93)Oct 19821st Small Business Training Institutes established (Additional Institutes opened in Honam (01), Daegu (03), Busan (04))Feb 19851st Regional office created (as for 2009, 23 offices created)Jul 1995Subsidiaries established : SBC Registrar (95.7), Small Business Distribution Center Co. Ltd (95.12), Korea Venture Investment Corp. (00.3)Sep 19981st Korea Business Development Center opened: (as for 2009, 17 KBDC opened) Mar 2005Business Support Center opened in QingdaoJun 2006Technology Cooperation Center opened in NovosibirskJan 2007Korea Desk opened : Indonesia (07.1), Philippines (08.2)Jan 2009Management of APEC SMEIC transferred to SBCBrief history of sbc

12

18 Departments23 Regional Offices2 Overseas Industry Technology Cooperation Centers2 Korea Desks761 Employees

Secretary

Auditing Office

Customer Satisfaction

Public Relations

Vice President

Planning &CoordinationManagementInnovationFund ManagementInfo System

Regional Offices(23)

Vice President

CorporateFinanceCorporate CreditManagement

Vice President

MarketingAssistanceGlobalCooperatione-BusinessResearch &Publications

Vice President

Technology Cooperation SME TechnologySupport CenterEnterprise Restructuring CenterTrade AdjustmentAssociation Center

Vice President

TrainingManagementInstructorsGroupTraining Institutes

Audit

Seoul, Pusan, Daegu-Kyeongbuk, Incheon, Gwangju-Jeonnam, Daejun-Chungnam, Ulsan, Kyeonggi, Kyeonggi Northern Branch, Chungbuk, Jeonbuk, Kyeongnam, Kangwon, Kangwon-Yeongdong Branch, Jeju, etc.

Overseas Industry and Technology Cooperation Centers - Novosibirsk Technology Cooperation Center - Qingdao Business Support CenterKorea Desk - The Philippines in BOI and Indonesia in BKPM, PNMAnsanHonamDaegu-KyungbukBusan-Kyungnam

President

Senior Vice Presidentorganization13

Major programs of sbc14 Long-term, low-interest loans for

Loan period : 5 to 9 yearsInterest rate : 3.84%, -4.74%, subject to loan programsLoan limit : up to US$4mil. per yearProgramsBudget Venture Business Start-ups1,000 Commercialization of R&D Results258 Promotion of the new growth industries1,210 Local Industry Development Program300 Mgmt Stabilization700 Industrial Structure Adjustment Program147 Issuance of ABS40Subtotal3,655 Micro-business Loans600Total4,255 (Unit : US$1 mil)

financial programs15

Venture Business Start-up Program

Provides financing for venture firms in their start-up and early growth stages

Eligible for supportSMEs having started up their businesses in under 7 yearsThose in the preparation stages of starting a businessFY2009 : US$1,000 Million

financial programs

16

Commercialization of R&D Results

Provides financing for eligible SMEs preparing to commercialize their intellectual proprietorship, the R&D results from national projects, and/or industrial-academic R&D institute joint research projects

FY 2009 : US$258 Millionfinancial programs

17

Non-financial programs

18

Non-financial programs

Global Cooperation ProgramInvestment SeminarsConsulting on Laws, Regulations, and Contract NegotiationIdentifying Partners / Match-MakingAPEC SME Innovation CenterOverseas MissionsLocal Networks

19

Industrial Coordinator Exchange ProgramSBC exchanges industrial coordinators with overseas organizations in Italy, Spain, Russia, Mongolia, South Africa, and China to develop and assist business initiatives, exchange information and more.

Non-financial programs

Global Cooperation Program

20

Industry and Technology Cooperation CentersNovosibirsk Technology Cooperation Center Qingdao Business Support Center in China

Korea DesksBOI in the Philippines, BKPM and PNM in Indonesia

International Counterparts Organizations175 organizations in 50 countries

Non-financial programs

Overseas Network

21

Korea Business Development Center Over 17 KBDCs located across 11 countriesPrivate Marketing Assistance Centers 95 centers in 29 countrieswww.Gobizkorea.comOnline marketplace for overseas buyersDaily visits: 908,000

Non-financial programs

Marketing Assistance Program

22

Provide comprehensive customized support based on business conditions via on-site diagnosis & consulting 3,600 companies in 2008

Provide Itnl Engineering Placement Program Searches & links highly skilled international engineers with promising Korean SMEs in need of the engineering skills and experience. Non-financial programs

Consulting Services Program

23

Idea Commercialization ProgramFor start-up companies, SBC provides a complete package of assistance in commercializing ideas of SMEs, from product development to marketingNew Product Development Assistance ProgramSMEs can use the rapid proto-typing system at SBC for new product development, all the way from initial design to actual proto-type applicationNon-financial programs

Consulting Services Program

24

Online: www.digitalsme.com Business information, DB of prospective SMEs, Q & A Service

Monthly publications: Kiopnara / Tech Times Research and policy studiesNon-financial programs

Information Services25

Conducting production-oriented practical, technical and mgmt training to foster competitiveness growth based on improved HR qualityAnnual training performance : 70,000 trainees at 5 training institutes

Non-financial programs

Training Services

Photo : Small Business Training Institute (SBTI) in Ansan City26

High flying, Korean SMEs27Definition of smes in KoreaIndustrySmall & Medium-sized EnterprisesEmployeesPaid-in Capital. RevenueManufacturingLess than 3008 million USD or less(paid-in capital)Transportation, Mining & ConstructionLess than 3003 million USD or less(paid-in capital)Retail, Hotel, etc.Less than 300

30 million USD or less(revenue)Fishery, Film, Hospital, etc.Less than 200

20 million USD or less(revenue)Wholesale, Service, etc.Less than 100

10 million USD or less(revenue)OthersLess than 50

5 million USD or less(revenue)Source : The Framework Act on SMEs28

No. of Companies

No. of Employees

Total : 3,022,053SMEs : 3,017,787 (99.9%)Total : 12,445,088SMEs : 10,884,650 (87.5%)SMEs : 3,017,787 (99.9%)SMEs : 10,884,650 (87.5%)Source : The National Statistics Office, Survey Report on Basic statistics of Businesses in Korea(2006)Economic importance of Korean smes29

Total : 6,792(4,473)SMEs : 2,241(1,648), 33.0%Total : 10,957(5,145)SMEs : 3,369(1,911), 30.7%Total : 20,352(5,540)SMEs : 5,662(2,235), 27.8%Total : 17,115(3,533)SMEs : 4,713(1,645), 27.5%

2005

2006

2007

2008Overseas investment of Korean smesSource : Korea Eximbank Unit: USD 1 Million30

2007

2006

2005

2004

Total : 253,844SMEs : 90,384(36%)Total : 284,418SMEs : 92,128(32%)Total : 325,464SMEs : 103,692(32%)Total : 371,489SMEs : 112,751(30.4%) Unit: USD 1 Million

Export performance of Korean smesSource : Korea Federation of SM Business31

Gross Output (Unit: USD 1,000)

No. of Companies

No. of Employees (Unit:1,000 Persons)

Value Added (Unit: USD 1,000)

Total : 118,240SMEs : 117,569 (99.4%)Total : 2,890SMEs : 2,192 (75.8%)Total : 906,381,300SMEs : 447,449,900 (49.4%)Total : 312,791SMEs : 161,382 (51.5%)Smes in the manufacturing sector32Thank youwww.apec-smeic.org

33