Seoul: The government has announced a strategic initiative to cultivate 500 small and medium-sized enterprises (SMEs) with an annual export capacity exceeding US$10 million by 2030. This initiative is part of a broader effort to bolster the export capabilities of smaller firms, as outlined by the Ministry of Trade, Industry and Resources on Friday.

According to Yonhap News Agency, South Korea's exports surpassed the $700 billion mark for the first time last year. However, a significant portion, approximately 84 percent, of these exports was contributed by the top 1 percent of export firms, those with an annual export volume over $50 million. In contrast, SMEs accounted for a mere 8 percent of the total exports.

The ministry's project aims to reduce reliance on a small number of conglomerates by enhancing the export capacity of SMEs. To facilitate this, five trade promotion agencies, including the Korea Trade-Investment Promotion Agency (KOTRA), Korea Trade Insurance Corp., and the Korea Institute for Advancement of Technology, have collaborated by signing a memorandum of understanding (MOU). This MOU is designed to provide essential support in marketing, certification, finance, and consulting to small export firms.

Under this agreement, SMEs identified as having export potential in sectors like consumer goods, artificial intelligence, semiconductors, and automobiles can apply for financial support up to 560 million won ($381,000) annually, for a duration of up to three years. "Fostering star export companies that pioneer new markets and new products is very important to overcoming polarization in exports and building an inclusive export structure for all," stated Kang Gam-chan, deputy minister for trade and investment.

Kang further emphasized that if the government and specialized institutions combine efforts effectively, nurturing small export firms into significant players on the global stage, South Korea could achieve an era of $1 trillion in annual exports in the near future.