The Export Import Bank of Korea (Kexim) has unveiled its Korean Hidden Champion programme, which will see 100 South Korean SMEs receive W1tn (US$870mn) in support.
Kexim announced plans to conduct an open call for SMEs hoping to be selected for the programme in late January this year. The bank plans to select 60 enterprises in the first half of 2010 and the final 40 in the second half of the year.
Eligible Hidden Champions are those SMEs with over US$100mn in exports, and with potential for securing a sizeable market share in the global market. These are companies that are not well known to the public, but which rank 1-3 in terms of market share and have sales of under US$4bn.
In line with goals to nurture the Korean Hidden Champions with technological superiority and substantial market share overseas, Kexim will allocate W100bn to the development of technologies and W30bn to the research of overseas markets.
The bank plans to provide SMEs selected for the programme with comprehensive expert consulting services in areas such as exchange risk, international law and overseas marketing. Companies will also receive benefits, such as preferred interest rates, reduced fees, credit line increases as well as funding for R&D and overseas expansion.
As the first step in launching the programme, the bank entered into an agreement with Kotec (Korea Technology Finance Corporation) on January 19 for cooperation in the selection and promotion of SMEs with potential to participate in the programme.
In accordance with the agreement, Kotec will evaluate the technologies of the enterprises and the bank will then select SMEs based on Kotec’s evaluations and other criteria.
Kexim chairman, Dong-soo Kim and the executive director of the strategy development credit group will hold quarterly meetings and workshops to better understand the needs and opinions of SMEs.
The bank eventually hopes to nurture 300 Hidden Champions and increase Korea's outbound shipments to US$4.8bn, GDP to US$25.6bn, and generate an additional W500bn in tax revenues by 2019.
“We have made our search for Hidden Champions public to maximise participation by exporting SMEs. We hope many SMEs with the technology and passion to succeed in the international market apply so that they may develop into Korean Hidden Champions to serve as the backbone for Korea’s economy,” said a Kexim representative.
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