Ministry of SMEs and Startups to Reform Functions of Affiliated Public Institutions... Integration of Similar and Overlapping Agencies

Establishment of the Tentatively Named Korea SMEs Marketing Promotion CorporationMerger of the Korea Startup Incubator Association into the Korea Institute of Startup & Entrepreneurship Development

On September 8, the Ministry of SMEs and Startups announced that it will push forward a public institution function reform that integrates public organizations with similar or overlapping roles and strengthens inter-agency connectivity.

As part of the government's initiative on public institution function reform released on September 3, the key plan for public institutions under the ministry's jurisdiction includes: ▲ Establishing the (tentatively named) Korea SMEs Marketing Promotion Corporation ▲ Merging the Korea Startup Incubator Association into the Korea Institute of Startup & Entrepreneurship Development ▲ Transferring the Korea Institute of Small and Medium Business Research to the National Research Council for Economics, Humanities, and Social Sciences ▲ Transferring the Korea Disabled Entrepreneurs Support Center to the Korea Employment Agency for Persons with Disabilities.

First, the Korea Small & Medium Business Distribution Center and Gongyoung Home Shopping will be merged to establish the (tentatively named) Korea SMEs Marketing Promotion Corporation. The two organizations have both provided support for discovering and commercializing promising SMEs, resulting in overlapping functions, while sales support has been fragmented across online and offline, in-house and external channels. This has created limitations in organically connecting product discovery with actual sales and has made it difficult for SMEs to identify and access the necessary policy support individually.

The Ministry of SMEs and Startups will unify the functions of discovering and commercializing promising products by establishing the (tentatively named) Korea SMEs Marketing Promotion Corporation through the merger of the two organizations. Furthermore, the ministry plans to build a customized support system for SMEs by linking and utilizing various sales channels across distribution and marketing.

The Korea Startup Incubator Association will be merged into the Korea Institute of Startup & Entrepreneurship Development. This aims to connect the on-the-ground incubation functions of the nation’s 248 business incubators with the startup support projects operated by the institute. Cooperation with local hubs such as 17 Centers for Creative Economy and Innovation will also be strengthened. The ministry plans to reinforce the support system by building an ecosystem for the "Startup for All Project" and streamlining governance for regional startup support.

The Korea Institute of Small and Medium Business Research will be transferred to the National Research Council for Economics, Humanities, and Social Sciences (NRCSHS) under the Prime Minister's Office. After the transfer, the institute will continue to conduct policy research projects for the ministry while also pursuing close collaboration with other research institutes under NRCSHS. This is expected to enable the macro-level research and analysis of SME and startup policies in connection with the corporate ecosystem, finance, employment, and regional development.

The Korea Disabled Entrepreneurs Support Center will be transferred to the Korea Employment Agency for Persons with Disabilities, which operates under the Ministry of Employment and Labor. By utilizing the agency’s nationwide network, the goal is to improve accessibility so that support can be provided more conveniently to people with disabilities and to offer integrated support for both disabled entrepreneurs’ business activities and employment-related services.

Three facility management subsidiaries—KIBO Mate, KODIT Partners, and KOSME Partners—will be merged to form the (tentatively named) Korea Venture & SME Management Corporation. The Korea SME Certification Institute, Korea Association for University & Industry Collaboration, and Korea Women Entrepreneurs Association will improve management flexibility by being released from the public institution designation requirements under Article 4 of the Act on the Management of Public Institutions.

The ministry stated, "We will continue to supplement the institution-specific reform plans by actively communicating with relevant ministries, public organizations, and labor unions, as well as collecting sufficient feedback from the field. Furthermore, we will thoroughly review all issues related to personnel and organizational matters to ensure smooth implementation of any necessary revisions to relevant laws and regulations."

© The Asia Business Daily. All rights reserved. Unauthorized AI training and use prohibited.