First Anniversary of Inclusive Companies Project (companies voluntarily cooperating for shared growth)
- Division
- Ministry of SMEs and Startups
- Date
- 2020.09.08
- Writer
- MSS
- File
- Hit
- 55
- Headline
- Presenting a new shared growth model for large enterprises and small and medium enterprises (SMEs) and making excellent achievements
‣ Established a shared growth model with non-transacted companies by discovering 14 inclusive companies
‣ Led efforts to overcome the COVID-19 crisis faced by SMEs
‣Enabled micro-enterprises to advance into the online market, helped SMEs upgrade into smart factories, and fostered venture firms and startups, among others, through inclusive companies that voluntarily engaged in activities for shared growth in diverse fields
The Inclusive Companies Project, which facilitated the spread of a culture of cooperation for shared growth by connecting SMEs and large enterprises that are voluntarily practicing values of shared growth and coexistence, celebrated its first anniversary on May 13.
An “inclusive company” refers to a large enterprise that voluntarily shares infrastructure (base), knowledge, and other strengths with not only its partners but also companies that have not been transacted with before to ensure shared growth.
The Korean Ministry of SMEs and Startups (MSS, Minister Park Young-sun) discovered 14 inclusive companies, starting with Naver, in May 2019. As such, a new model for cooperation between large enterprises and SMEs based on their division of labor continued to spread, away from existing frameworks of large enterprises cooperating with primary partners by connecting large enterprises with private organizations and nongovernmental organizations (NGOs).
Since last year, inclusive companies have supported the advancement of micro-enterprises into the online market, invested in new industry venture firms, and supported the upgrade of SMEs into smart factories, among others, thereby voluntarily practicing cooperation in their own ways for shared growth with SMEs.
As we celebrate the project’s first anniversary, here are some of the best practices of shared growth and cooperation that have been practiced by inclusive companies.
① Naver has provided “Dongnaesijang Jangbogi” (meaning “shopping in the neighborhood market”) service by recreating the local market on the Internet to support the advancement of micro-enterprises online. Currently, it has helped advance 237 markets and 1,367 stores in the online sphere.
◦ In addition, the company operated and expanded “Naver Partner Square,” which provides working spaces and training to micro-enterprises to prepare for their online transition. Thus, this has largely contributed to tearing down entry barriers into the online market and opening new sales routes.
② Samsung Electronics has supported the upgrade of SMEs into smart factories. In particular, it dispatched experts to mask manufacturing companies to solve the mask shortage problem brought by the COVID-19 pandemic and helped these companies drastically improve their daily mask production capacity by over 51%.
* The total daily production of the four companies of E&W, Loesstech, EverGreen, and Hwajin increased by 51% (920,000 → 1.39 million).
③ Korea Aerospace Industries (KAI) conducted a project of supplying smart factories to three companies (S&K, BuSung, and Daehwa Aerospace Industries) by diagnosing their smart capacity, innovating their manufacturing sites, and building operational infrastructure to help the SMEs manufacture aero parts. Moreover, KAI also plans to expand the project in the future.
④ POSCO is creating venture funds totaling KRW 2 trillion, as well as KRW 800 billion investment funds to invest in and support venture firms until 2024. As of now, it has invested about KRW 26 billion in 9 venture firms.
⑤ Inclusive companies in the financial sector* expanded their support for smart factories and intellectual property (IP) finance (KRW 150 billion), offered financial support for restaurants (KRW 90 billion –expanded to lodgings and other related businesses), provided special guarantees for companies run by women entreprenears (KRW 120 billion), and showed other ways to support SMEs and micro-enterprises suffering from the COVID-19 crisis.
*Shinhan Financial Group, Kookmin Bank, Woori Bank, Hana Bank, and others
◦ Each of the banks also signed an additional agreement for shared growth with the ministry (April 9) to expand their windows exclusively for micro-enterprises suffering from the crisis and systematize their judgments on loans that compensate for interest rate difference.
The efforts made by such inclusive companies for shared growth is providing foundations for SMEs to overcome the crisis and grow innovatively while spreading a culture of voluntary cooperation between large enterprises and SMEs.
As such, the ministry plans to find more inclusive companies in diverse fields to further propagate this new culture of shared growth.
“Examining the best practices of shared growth accomplished in the past year by connecting large enterprises and SMEs in new ways through the Inclusive Companies Project, which we have planned directly, made us realize that it has been worthwhile... We will continue to work hard to find more inclusive companies in diverse fields so that voluntary cooperation for shared growth between large enterprises and SMEs brings forth a new culture,” MSS Minister Park Young-sun said.
An “inclusive company” refers to a large enterprise that voluntarily shares infrastructure (base), knowledge, and other strengths with not only its partners but also companies that have not been transacted with before to ensure shared growth.
The Korean Ministry of SMEs and Startups (MSS, Minister Park Young-sun) discovered 14 inclusive companies, starting with Naver, in May 2019. As such, a new model for cooperation between large enterprises and SMEs based on their division of labor continued to spread, away from existing frameworks of large enterprises cooperating with primary partners by connecting large enterprises with private organizations and nongovernmental organizations (NGOs).
| ① Naver Korea Federation of Micro Enterprise (May 2019) |
②POSCO Korean Venture Capital Association (May 2019) |
③Shinhan Financial Group Korea Venture Business Association (June 2019) |
| ④Kookmin Bank Korea Food Service Industry Association (August 2019) |
⑤Woori Bank Korean Women Entrepreneurs Association (August 2019) |
⑥Softbank Ventures Korea Venture Investment Corp. (September 2019) |
| ⑦Samsung Electronics Korea Federation of SMEs (October 2019) |
⑧Hana Bank Yonsei University INNOBIZ (November 2019) |
⑨Korea Rail Network AuthorityKorea Venture Business Women’s Association (November 2019) |
| ⑩Hyundai-Kia Motors– Korea Auto Industries COOP Association (December 2019) |
⑪Korea Aerospace Industries Korea Aerospace Industries Association (February 2020) |
|
| ⑫ARM Seoul National University – Korea Venture Business Association (April 2020) |
⑬Starbucks Prism – Korea Accelerator Association (May 2020) |
⑭SKC Korea Startup Forum (May 2020) |
Since last year, inclusive companies have supported the advancement of micro-enterprises into the online market, invested in new industry venture firms, and supported the upgrade of SMEs into smart factories, among others, thereby voluntarily practicing cooperation in their own ways for shared growth with SMEs.
As we celebrate the project’s first anniversary, here are some of the best practices of shared growth and cooperation that have been practiced by inclusive companies.
| Major best practices of inclusive companies on the first anniversary of the project |
① Naver has provided “Dongnaesijang Jangbogi” (meaning “shopping in the neighborhood market”) service by recreating the local market on the Internet to support the advancement of micro-enterprises online. Currently, it has helped advance 237 markets and 1,367 stores in the online sphere.
| ∙ Miso Rice Cake Mill: From March 2019, the company started selling on Naver’s platform (“Dongnaesijang Jangbogi”), which helped them sell over 100% of their off-line sales online and reached sales of over KRW 50 million. |
◦ In addition, the company operated and expanded “Naver Partner Square,” which provides working spaces and training to micro-enterprises to prepare for their online transition. Thus, this has largely contributed to tearing down entry barriers into the online market and opening new sales routes.
| ∙ Jinseong Korean Beef : Despite being a small restaurant located in Jangseong-eup, Jeollanam-do Province, it grew into a company that boasts KRW 2 billion in annual sales by operating an online store and getting training through Naver Partner Square. |
② Samsung Electronics has supported the upgrade of SMEs into smart factories. In particular, it dispatched experts to mask manufacturing companies to solve the mask shortage problem brought by the COVID-19 pandemic and helped these companies drastically improve their daily mask production capacity by over 51%.
* The total daily production of the four companies of E&W, Loesstech, EverGreen, and Hwajin increased by 51% (920,000 → 1.39 million).
| ∙ Hwajin: This company got support to upgrade into a smart factory, and its daily production increased from 80,000 to 120,000. Then, the company practiced shared growth by selling one million nonprofit masks on a public home shopping channel. |
③ Korea Aerospace Industries (KAI) conducted a project of supplying smart factories to three companies (S&K, BuSung, and Daehwa Aerospace Industries) by diagnosing their smart capacity, innovating their manufacturing sites, and building operational infrastructure to help the SMEs manufacture aero parts. Moreover, KAI also plans to expand the project in the future.
| ∙ SolGent: It was introduced to a smart factory, and its weekly productivity increased by 73% from 11,900 to 20,571 kits. |
④ POSCO is creating venture funds totaling KRW 2 trillion, as well as KRW 800 billion investment funds to invest in and support venture firms until 2024. As of now, it has invested about KRW 26 billion in 9 venture firms.
⑤ Inclusive companies in the financial sector* expanded their support for smart factories and intellectual property (IP) finance (KRW 150 billion), offered financial support for restaurants (KRW 90 billion –expanded to lodgings and other related businesses), provided special guarantees for companies run by women entreprenears (KRW 120 billion), and showed other ways to support SMEs and micro-enterprises suffering from the COVID-19 crisis.
*Shinhan Financial Group, Kookmin Bank, Woori Bank, Hana Bank, and others
◦ Each of the banks also signed an additional agreement for shared growth with the ministry (April 9) to expand their windows exclusively for micro-enterprises suffering from the crisis and systematize their judgments on loans that compensate for interest rate difference.
The efforts made by such inclusive companies for shared growth is providing foundations for SMEs to overcome the crisis and grow innovatively while spreading a culture of voluntary cooperation between large enterprises and SMEs.
As such, the ministry plans to find more inclusive companies in diverse fields to further propagate this new culture of shared growth.
“Examining the best practices of shared growth accomplished in the past year by connecting large enterprises and SMEs in new ways through the Inclusive Companies Project, which we have planned directly, made us realize that it has been worthwhile... We will continue to work hard to find more inclusive companies in diverse fields so that voluntary cooperation for shared growth between large enterprises and SMEs brings forth a new culture,” MSS Minister Park Young-sun said.
Ministry of SMEs and Startups  |
| Reference | Current State of the Inclusive Companies Project on its First Anniversary |
| Company | Connected Group | Memorandum of Understanding (MOU) Details |
| Naver (May 13, 2019) |
Korea Federation of Micro Enterprise | Reinforced the autonomy of micro-enterprises by supporting them in advancing into the online market |
| POSCO (May 21, 2019) |
Korean Venture Capital Association | Invested in venture firms and startups by creating strategic venture funds worth KRW 1 trillion |
| Shinhan Financial Group (June 24, 2019) | Korea Venture Business Association | Developed new industries by expanding investments in venture firms |
| Kookmin Bank (August 1, 2019) | Korea Food Service Industry Association | Supported the reinforcement of restaurants’ business competitiveness by launching exclusive products for self-employed restaurant businesses |
| Woori Bank (August 20, 2019) |
Korean Women Entrepreneurs Association | Supported and reinforced the competitiveness of companies run by female CEOs by launching products exclusively for them |
| Softbank Ventures (September 26, 2019) |
Korea Venture Investment Corp. | Promoted startups in the artificial intelligence (AI) field and vitalized investment for their scale-up |
| Samsung Electronics (October 11, 2019) | Korea Federation of SMEs | Supported the upgrade into smart factories of companies manufacturing material-part-equipment |
| Hana Bank (November 14, 2019) |
INNOBIZ and Yonsei University | Built a system to support material-part-equipment companies in need of technologies and supported INNOBIZ companies |
| Korea Rail Network Authority (November 21, 2019) |
Korean Venture Business Women’s Association | Encouraged work-family-life balance for people working in startups, venture firms, and SMEs and promoted their business establishments |
| Hyundai-Kia Motors (December 18, 2019) |
Korea Auto Industries COOP Association | Supported the switch of auto parts from internal combustion engines to future automobiles |
| Korea Aerospace Industries (February 5, 2020) |
Korea Aerospace Industries Association | Fostered SMEs producing aero parts to secure cutting-edge technological competencies in the aero industry |
| ARM (April 22, 2020) |
Korea Venture Business Association and Seoul National University | Helped in the innovative growth of startups and venture firms in the system semiconductor field |
| Starbucks (May 7, 2020) |
Prism and Korea Accelerator Association | Promoted the establishment of youth startups |
| SKC (May 13, 2020) |
Korea Startup Forum and Korea Technology Finance Corporation | Built a shared growth ecosystem through open innovation and fair technology trade |