Korea s Experience in Policy Support to Encourage Korean Small Businesses to Make Use of FTAs

Transcription

1 06/SMEWG43/04 Agenda Item:.6 Korea s Experience in Policy Support to Encourage Korean Small Businesses to Make Use of s Purpose: Information Submitted by: Korea 43 rd Small and Medium Enterprises Working Group Meeting Lima, Peru 7-8 September 06

2 Korea s experience in policy support to encourage Korean small businesses to make use of s Republic of Korea Table of contents Korea s free trade agreements with other countries Policies to encourage SMEs to make use of s 3 Achievements

3 . Korea s free trade agreements with other countries s currently in effect Korea-Chile -- Korea- Singapore Korea-E Korea-ASEAN Korea-India CEPA Korea-EU Korea-Peru Korea-US Korea-Turkey Korea-Australia Korea-Canada Korea-China Korea-New Zealand Korea-Viet Nam Korea-Columbia. Korea s free trade agreements with other countries s in negotiation Korea-RCEP Korea-Central America -3- Korea-Ecuador SECA Korea-China- Japan Korea-Israel 3 s in preparation

4 . Korea s free trade agreements with other countries 4 How s are being used (unit : %) Research by the private sector ( ) Joint research by government, academia and industry ( ) Selection of reports Prelimina ry agreeme nt Agreeme nt on details st negotiati on meeting Agreeme nt on framewo rk nd negotiati on meeting Conclusi on Provisional signing (Feb 05), commence ment(dec 05) Agreement on details Real GDP Consumer welfare After 5 years Additional growth of 0.30 % USD 5.6 billion After 0 years Additional growth of 0.96% USD 4.6 billion Job creation 3,600 jobs 53,805 jobs. Korea s free trade agreements with other countries 5 Importance of s Lower tariffs leads to cost reduction and ultimately cost competitiveness in overseas markets Importer Lower tariffs leads to the decrease in sales prices, making exporters increase exports Exporter Increase in exports leads to increase in sales, ultimately leading to the revitalization of domestic production Manufacturer

5 . Policies to encourage SMEs to make use of s - SMBA Program to enhance capability to respond to Export consulting Overview: Enhance SMEs exporting capability by providing specialized consulting services regarding export strategies and difficulties in export, a certificate of origin, marketing strategy to respond to, etc Eligible companies and service period consulting(including consulting focused on China) : SMEs or medium-sized companies that have or are expected to foreign countries that have concluded s with Korea (for 6 days) consulting (long-term) : SMEs or medium-sized companies that have or are expected to foreign countries that have concluded s with Korea (for a year) Export consulting : SMEs that are already exporting or are expected to export (for 3 days) Size of support and budget in 06 : 970 companies /.95 billion KRW Types of consulting consulting : Verification of country of origin, application for certified exporters, country of origin management system, etc consulting (long-term): Consulting and education on s based on country of origin management system Export consulting : Finding buyers, marketing, customs clearance, etc.. Policies to encourage SMEs to make use of s - SMBA Program to enhance capability to respond to Education Overview : Provide comprehensive education on to SME CEOs and employees including establishing strategies to make use of s, managing country of origin, providing -related information, etc. Types of education Education using customs broker agencies : on site : education, 3-day intensive course Education to respond to MEGA : Education on business models in the era of mega s such as TPP and RCEP Education for both exporting companies and their vendors : Designed to educate small vendors having trouble filling out documents related to the verification of country of origin Education for CEO : To raise awareness about s and educate on the program about establishing strategies to make use of s Size of support and budget: 9,000 people / 450 million KRW

6 3. Achievements Number of beneficiaries export consulting and education Consulting education Total 836 Co. 5,460 ppl,4 Co. 7,30 ppl 85 Co. 8,789 ppl,775 Co.,55 ppl Major achievements Increase in exports for companies that received consulting services in % increase in exports compared with 04 * (04) USD 657 million (05) USD 78 million Increase in exports for companies exporting to China that have received consulting services in 06.6% increase in exports compared with same quarter in 05 * (05 st qtr) USD 74 million (06 st qtr) USD 90 million