• Park Administrative recognizes SME as the driving force of creative economy.

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2013 11

2013. 11

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Chapter 1.

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• Park Administrative recognizes SME as the driving force of creative economy.

• Growth strategy swing from LEs to SMEs

 Focus on the

gro th of Large  Biz Paradigm Change

“Creative Economy”

growth of Large Enterprises

 No more trickle

 Biz Paradigm Change from Catch-up to

First-mover

 SMEs’ accompanied growth as

b t t

down effect from LEs

 Employment f

More Focus on SMEs subcontractors decoupled from

GDP growth

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Korea Small Business Institute

Prime Minister’s Office

(Council for SME Policy Coordination)

Small and Medium Business Administration

(Policy Organization

Ministry of Strategy

Ministry of Trade, Industry

Financial Services

Ministry of Employment (Policy Organization

& Execution)

gy

& Finance

y

& Energy Commission

p y and Labor

Small and Medium

Business Corporation Korea Institute for Advancement of

Technology

Korea Credit Guarantee

Fund

Human Resources Development Service of Korea

Small Enterprise Development Agency

gy

Korea Trade- Investment

Korea Technology

Service of Korea

Korea Institute of Startup

& Entrepreneurship Development

Investment Promotion Agency

Technology &

Finance Corporation

Human

SME Empowerment Technology &

Marketing Finance

^Human

Resources

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Protection and Development of SMEs Promotion of SMEs’ Self-help Organization

Scope of SMEs

Direction of SMEs Promotion

Financial Support Expansion

Organization of SMEs

Promotion of LEs -SMEs

Cultivation of Micro Enterprises

Development of Local SMEs Provision of

Technology,

Marketing and Expansion

SME Cooperatives Support for SME

Act on Facilitation

of Purchase of Industrial Bank of

SMEs Cooperation

Act on the Cooperation

and Venture

Balanced Regional Development and Marketing and

Human Resources

SME Cooperatives Act

Support for SME Establishment Act

Act on the Promotion of SME-Products

and Markets

Industrial Bank of Korea Act

Act on Credit

p between LEs and SMEs

Act on Development of

Development and Support for Local

SMEs Act

Promotion of Technology

Innovation Act on Support for

H R

Fund Guarantees

Foundation for the

C dit G t

p

Small and Micro Enterprises

Act on the

P ti f

Human Resources of SMEs

Credit Guarantees Act

Promotion of Venture Businesses

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Chapter 2.

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2010s 2010s

2000s 2000s

After Asian Financial Crisis

1990s 1990s

1970s 1970s∼

∼

1980s 1980s

1960s

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14.00

Expansion of (%)

12.00

Preemptive, decisive,

& sufficient response

- A steep increase in

p

guarantee supply Additional Policy Fund raising

8.00

10.00 Policy Fund

(from $ 2.6B to $ 5.4B)

- Early execution of Policy Fund

g

6.00

y

Guarantee for

micro start-up businesses First

Oil Shock

*Interest Rate Reduction

2.00

4.00

Venture business

emergency fund

Household Credit Crisis

Second Oil Shock

Reduction

0.00

'70 '72 '74 '76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12

Asian Financial Crisis

Crisis

Global Financial Crisis

*Overall Finance Increase

Real GDP Growth (Moving Average, 3 Years)

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Investment (0.8%) Micro Credit (1.7%)

Government Lending (3.3%)

- Private Banks

Loan (81%) Credit Guarantee (13.2%)

- Korea Credit Guarantee - Korea Technology Finance - K-SURE

R i l F d

SME Loans to Total Loans Ratio

%

41.8

40.0

50.0

- Specialized Banks

- Government sponsored Banks - Regional Funds

2.0

13.2

26.8

0 0 10.0 20.0 30.0

* Source: World Bank (2010)

0.0 Loan-focused financial resources Security-oriented bank advance Weak foundation

Korea Financial Supervisory Service (2012)

►Expanding direct financing

►Supporting venture and angel investment

►Promoting technology-based loan

►Introducing technology

of relationship banking

►Constructing information infrastructure

vest e t

►Vitalizing M&A

g gy

certification system, Technology Bureau

►Enhancing qualitative

approaches of SMEs

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Chapter 3.

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 E-government Cooperation

Project  Multiple Complex Construction

Project p p

 3

^rd

Country Development Co-investment MOU with ‘Qatar Holdings’

 ‘Qatar Metro’ Construction (GS Construction Corp.)

 Healthcare and Medical Technology Cooperation

 Riyadh Metro Contract

 GCC Railway Project (Korean Companies Participation)

 Kor-UAE Cooperation

•Nuclear Energy

•Labor Training

•Renewable Energy

(Samsung C&T)

ICT

 Living Construction, U-City

Development Participation  GIC-KoFC Global

Cooperation Fund

•ICT

•Semiconductor

 Construction of

Nuclear Power Plant &

 Shipyard Integration

of Operation Nuclear Power Plant &

Desalination facilities p

System

(LG CNS)

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