Mr. Chon Yong Ho, Small & Medium Business Corp. Korea.

Transcription

1 Mr. Chon Yong Ho, Small & Medium Business Corp. Korea.

2 International Innovation Index Rank Country 1 South Korea 2 United States 3 Japan Produced jointly by The Boston Consulting Group (BCG), the National Association of Manufacturers (NAM), and The Manufacturing Institute (MI), March Sweden 5 Netherlands The way out of the doom and gloom of 70s and the end of 90s in Korea was a wave of technology innovation that spurred a generation of company formation, job creation, productivity gains, wealth accumulation and GDP growth.

3 Korean Government Initiatives in cultivating INNOVATION for higher productivity growth 1. Developing Human Resources & Technology. 2. Access to Specialist Assistance and Advice 3. Enhancing Availability of Capital to Innovative SMEs 4. Network and Clustering for Innovative SMEs 5. Establishing Appropriate Legal and Regulatory Structure 6. Establishing a Market Consistent Economic Environment 7. Developing Methodologies for Effectively Measuring Progress in the Implementation of Innovation Programs for SMEs.

4 1. Developing Human Resources & Technology Joint research and development among university-industryinstitutes Special incentives or institutional supports to SMEs for patent application Provide technology training with low cost Encourage college graduates to work in SMEs.

5 2. Access to Specialist Assistance and Advice. Government regularly meet with representatives from innovative SMEs, and discuss their needs. Government maintain a database of expert consultants who would be useful for innovative SMEs Provide consulting services for SMEs concerning technical, entrepreneurial, legal or tax issues

6 3. Enhancing Availability of Capital to Innovative SMEs R&D grant programs for innovative SMEs - USD 487million Tax incentive programs for innovative SMEs Korea Credit Guarantee Fund Institution allocate 50% (USD10 billion) of credit guarantee fund to innovative SMEs. Priority given to Innovative SMEs on SME policy fund.

7 4. Network and Clustering for Innovative SMEs Designated Regional Areas for Venture Business Fostering Zone (VBFZ). Business incubating centers centers with 4,532 start up employing 22,982 people, creating USD1.4 billion in revenue (as of 2009).

8 5. Establishing Appropriate Legal and Regulatory Structure Providing Legal Support for Innovative SMEs Establishing a legal definition of an innovative SME -Venture Firms, Innobiz Firms, Innovative Management SMEs Fostering Purchase of SME Products and Service Act. -Public Procurement spent USD 63 billion in 2007, 61.3billion in 2008 and 79.8 billion in 2009.

9 Definition of Innovative Company Venture Firms - company invested by venture capitals - company with large percentage of R&D spending - compnay with patents or new technologies Innobiz Firms, and Innovative Management SMEs company use innovations in technology and management to create value added which is higher than a general firm.

10 6. Establishing a Market Consistent with Economic Environment Strengthening cooperation between large companies and SMEs Supporting SMEs to make inroads into overseas markets

11 7. Methodologies for Effectively Measuring Progress in the Implementation of Innovation Programs for SMEs. Customer-oriented evaluation system Statistics measuring innovative SMEs activities, performances and evaluating SME innovation policies.

12 Evaluation of Performance of Innovative Company Revenue Innobiz smes General smes

13 Case of Innovation by Commercialization of New Product

14 Company Introduction Revolution of New Light - White LED LUXPIA Co., Ltd. Name Luxpia Co., Ltd President/CEO Choi Sung-Gyu Establishment July 4 th 2000 Capital KRW 5.6 billion Sales KRW 324 million (2004) Employees 140 Address Jeonju Science & Industrial Complex, Dusan-Li, Bongdong-Eup, Wanju-Gu. Jeonbuk, Korea

15 Company Introduction (Products)

16 Successful Case of New Product Development (Develop. Background & Necessity) Environmental Factors Analysis Need for Innovation Set Target External Factors Internal Factors Expansion of LED Market due to Rapid Development of Mobile Phones Total reliance on Imports for LED for LCD Back-Light Deepening of Excessive Competition with Other Companies * 25 New Companies Appeared in Market Drop in Revenue due to Drop in Selling Price of Existing LED Products Large Growth of Market Localization Benefit Vast Differentiation from Competitors Increase of Sales Development of Side View LED for Mobile Phone LCD

17 Successful Case of New Product Development (Develop. Target & Challenges) Product Development Target Classification Advanced Products Development Target Comparison Size (mm) Product Height T= 0.8mm Luminosity (mcd) Luminosity Drop in Reliability Test Within 30% Within 30% Leading Comp. Standard Same Reliability Condition Sales Price Market Price 80% compare to Leading Comp. Cheaper Prod. Cost Challenges Issues Environment Innovation Promotion Develop. of Localization of Side View L/F Raw Materials Procurement of Packaging Materials Find High-reliable Brightness LED Chip Supplier Process Develop. & Quality for New PKG Reliability Guarantee of Finished Products Lack of New Prod. Develop. Capability Lack of Develop. & Investment Capability First to Try in Korea, Lack of Support from Related Companies Lack of Quality Guarantee of Local LED Materials & Mfg. Technology Insufficient Reliability Guarantee for Brightness LED Chip First Process Development in Korea Failure of Leading Companies, Lack of Process Problem Solving Ability Insufficient Manpower with LED Process & Technological D evelop. Experience Lack of Develop. Cost & High-cost Mfg. Facilities Challenge to create something from nothing

18 Successful Case of New Product Development (Procurement of Mfg. Technology) Issues Process Results Procuring Process Designing Technology Optimal Process Design Process Line-up for Initial Sample Chromaticity Measurement Process Development Implementation Improved Package Assy. Yield Rate (99.8%?) Process Stabilization System through Test Production Acquired Process Control Technology Procuring Facilities Technology Development of Facilities fitting for Company s Products Procuring Facilities Remodeling Technology Package Productivity & Quality Secured Early Response Capability to Various New Products Secured Procuring Reliability Test Technology Reliability Analysis Room Set-up Securing Reliability Data of over 1,000 Hrs Procuring Acceleration Test Technology Reliability Data of Product Secured Product Reliability Guaranteed Longevity Estimation Capability Secured 1 st In Korea to Succeed in Commercialization of Side View LED (Market Research: 1 month, Product Development: 7 months, Mfg. Technology Procuring: 4 Months)

19 Successful Case of New Product Development (Academic-Industrial Cooperation Network) Central & Provincial Gov. Support -Ministry of Commerce, Industry & Energy -Ministry of Information & Communication/National IT Industry Promotion Agency (NIPA) -Jeonbuk Province -Jeonbuk Strategic Business Planning Unit Utilization of Support Program from Public Research Organizations -Korea Photonics Technology Institute (KOPTI) -Korea Institute of Science & Technology Information (KISTI) Development of Side View LED Promotion of Joint Industrial Research -Ninex Co.Ltd. Utilization of Research Infra in Provincial Universities -Jeonbuk Uni. Semiconductor Physics Research Center -Wonkwang Uni. Electrical Engineering Application Research Center -Chungnam Uni. Electronic Engineering Department

20 Successful Case of New Product Development (Innovation in Action) Background Alternative Proposal needed for Early Production of Developed Products (Technology Procurement) Strengthening in Company Competitiveness by Procuring Quality, Yield Rate, Productivity (Maximize Profits) Ensure Sense of Community by Full Participation of All Employees (Procuring Basic Spirit of Workplace) Fostering Innovative Atmosphere Slogan : The 2 nd Jump Goal : Zero default Daily Improvement Technicians of all workers Ongoing 3 Jeong 5S Activities 1. 3 Jeong 5S Acitivities Improvement - Comparing Before/After Improvement by Shooting Apex - Assign Cleaning Area to a Person in Charge - Observe Right Place for Things on Site - Improvement through Suggestion 2. 3 Jeong 5S Audit - Organization of Inspection Team & Conduct of Audit twice a month - Check on Improvement on Pointed Out Matters - 3 Jeong 5S Evaluation Session - Reward Various Incentives After Evaluation Innovation Kick-off Before Activities After Activities Improvement on Issues Status Innovative Activities Work Shop 3 Jeong 5S Activities

21 Successful Case of New Product Development (Innovation in Action) Improvement Suggestion Activation 1. Building Improvement Suggestion System - Enactment of Related Regulations - Best Suggestion Award(Monthly, Quarterly, Half-Yr, Yearly) - Outstanding Suggestion Screening & Reward 2. Build Improvement Suggestion Knowledge Infrastructure - Develop Improvement Suggestion Mana gement Program - Build Suggestion Screening Result & Imp lementation Search System 3. Improvement Suggestion Education (In-Company) - Education Subject: Making My Suggestion Before Improvement After Average No. of Suggestion Per Month Operation of Multi-Skilled Worker System 1. In-Company Multi-Skilled Worker Education Progression - Professional Technician-Level Instructors - Produce Operator Manual for each Process - Evaluate Effectiveness After Education & A ward Best Performer 2. Best Multi-Skilled Worker Competition - Conduct Test on Participants Score & S election - Award Prize to Best Performers 3. Multi-Skilledness Reflected on Appraisal Before Activities After Rate of Multi-Skilledness Multi-Skill Education Training

22 Outcome of Innovation Promotion (Tangible Benefits) Sales Sales (KRW 100 mil) Annual Sales Progress Unit: KRW 100 mil SV Penetration Sales Sales (KRW 100 mil) Classification Sales SV Sales Sales Pen Class. Employees Key Technology (Intellectual Property Rights) Class Appli. Reg. Total Employee (No.) Increased Produced Unit Per Person (Approx. 39.2% increase) Patent Utility Model Reg. Design

23 Outcome of Innovation Promotion (Intangible Benefits) Strengthening Company Competitiveness Improvement of Industrial Structure Secure Leading Company Position Company s Globalization through Export LED PKG Development Capability Procurement Innovation Activities On Site PKG Self-Design Technology Secure Process & Defect Analysis Capability Raise LED Production Technology 3 Jeong 5S Problems I mprovement (243%) Activation of Improvement S uggestion (927%) Multi-skilled Worker Operational Rate (70%) Venture Company Best Export Award (Jeonbuk) $5 mil Export Contribution Award (KITA) Best Small & Medium Entrepreneur Award (Jeonbuk)

24 December 7th, 2007

25 Who we are Non-profit government agency What we do Effectively implement government policies and programs for the sound growth and development of SMEs Provide a wide range of services including finance, consulting, training, marketing and international cooperation Employees : 761 Budget(2009) : US$ 9.5 Billion

26 Date Jan 1979 Sep 1979 Oct 1982 Feb 1985 Jul 1995 Sep 1998 Mar 2005 Jun 2006 Jan 2009 Jan 2010 Activities SBC established Overseas Office opened in Europe ( 79), Japan ( 83), USA ( 83), China ( 93) 1 st Small Business Training Institutes established (Additional Institutes opened in Honam ( 01), Daegu ( 03), Busan ( 04)) 1 st Regional office created (as for 2009, 23 offices created) Subsidiaries established : SBC Registrar ( 95.7), Small Business Distribution Center Co. Ltd ( 95.12), Korea Venture Investment Corp. ( 00.3) 1 st Korea Business Development Center opened: (as for 2009, 17 KBDC opened) Business Support Center opened in Qingdao Technology Cooperation Center opened in Novosibirsk Management of APEC SMEIC transferred to SBC Korea Desk in Malaysia

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28 Long-term, low-interest loans for Type of loans (Unit : US$1 mil) Budget? Venture Business Start-ups 1,000? Commercialization of R&D Results 258? Promotion of the new growth industries 1,210? Local Industry Development 300? Mgmt Stabilization 700? Industrial Structure Adjustment 147? Issuance of ABS 40 Loan period : 5 to 9 years Subtotal 3,655? Micro-business Loans 600 Total 4,255 Interest rate : 3.84%, -4.74%, subject to loan programs Loan limit : up to US$4mil. per year

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30 Global Cooperation Program Investment Seminars Overseas Missions Local Networks Consulting on Laws, Regulations, and Contract Negotiation Identifying Partners / Match-Making APEC SME Innovation Center

31 Global Cooperation Program Industrial Coordinator Exchange Program SBC 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.

32 Marketing Assistance Program Organize trade mission abroad Korea Business Development Center Over 17 KBDCs located across 11 countries Private Marketing Assistance Centers 95 centers in 29 countries Online marketplace for overseas buyers Daily visits: 908,000

33 Training Services Conducting production-oriented oriented practical, technical and mgmt training to foster competitiveness growth based on improved HR quality Annual training performance : 70,000 trainees at 5 training institutes Training for SME CEOs and government officials from Asian countries. Photo : Small Business Training Institute (SBTI) in Ansan City

34 Consulting Services Program Provide comprehensive customized consulting based on business conditions via on-site diagnosis with 200 in-house consultants. 3,600 companies in Provide Itn l l Engineering Placement Program Searches & links highly skilled international engineers with promising Korean SMEs in need of the engineering skills and experience.

35 Consulting Services Program Idea Commercialization Program For start-up companies, SBC provides a complete package of assistance in commercializing ideas of SMEs, from product development to marketing New Product Development Assistance Program SMEs can use the rapid proto-typing typing system at SBC for new product development, all the way from initial design to actual proto-type type application

36 Korea Desk Start operating in April, 2010 within MIDA HQ to better facilitate and assist Industrial Cooperation between Korean companies and Malaysian companies 36

37 Malaysian-Korean consortium to invest RM150m in green lighting Friday, 23 July 2010 SEOUL: A consortium of one Malaysia-based and four Korean companies are investing RM150 million in Malaysia to introduce green lighting technology, and hopes to set up a manufacturing plant here in the next three years. Malaysia-based DTC Group Sdn Bhd will team up with Korean companies Creative System Co Ltd, GwangYeokJeongi (Ju), Kolamp and Fajin Eng Ltd. This is a milestone achievement not only for Malaysians but also for Korean small-medium businesses. Having witnessed four top Korean companies with a combined ownership of over 50 patents joining forces is truly admirable. It further strengthens the philosophy that we are stronger only if we work together, added Park Jeongbae, general manager of Small and Medium Business Corporation (SBC), a government-funded agency set-up to support Korean SMEs in their global competitiveness. The parties signed a memorandum of understanding (MoU) in Seoul on Tuesday, witnessed by International Trade and Industry Minister Datuk Seri Mustapa Mohamed during the ministry s trade and investment mission there. In a statement, DTC said the consortium would introduce the induction lighting technology, an electrode-less fluorescent lighting system as an alternative green technology for industrial usage.

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39 SME Consulting < Raphael Legacy Design Inc.> <SANYO SEIKI STAINLESS STEEL CORPORATION> 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

40 Looking for Korean companies to cooperate? Want to participate in free consulting program? Contact Korea Desk T : sbc_mida@yahoo.com Thank you