President Kim Jae-hong of Korea Trade Investment Promotion Agency.

The Korea Trade-Investment Promotion Agency (Kotra) plans to help 1,400 small-and medium-sized enterprises (SMEs) become exporters, in support of the government’s target of boosting annual international trade to $2 trillion by 2020. Last year, Korea exported goods and services worth $573.1 billion. 

Kim Jae-hong, Kotra’s new president, said recently that the state-run international trade promotion agency will select 1,400 domestic companies and help them become exporters with substantial overseas operations over the next few years. To meet the target, Kotra plans to help about 420 SMEs enter markets overseas and set up bases for operations.

“It is impossible for Korea to boost its international trade to $2 trillion by 2020 without small, and medium-size exporters putting in their shares,” the new president said. “Korea has its ups and downs in its economic growth but came this far so far through the growth of exports, and now has to create new growth engines overseas.”

According to Kotra, the number of exporters should be expanded to 100,000 by 2017 and at least 400 companies should have combined exports totaling $100 million annually. They would be in accordance with the Creative Economy Innovation Centers across the nation to train startups to be good at international trade.

To provide more comprehensive support to exporters, the centers will boost cooperation with the Korea International Trade Association, K-Sure, the Korea Export-Import Bank and other trade-related state agencies.

Kotra conducts market research and other jobs including consulting services for exporters. In order to provide more useful support, it has decided to work more closely with related agencies such as financial organizations, among others.

Kotra has also decided to give support to enterprises in the areas of entertainment, medical and other service sectors, so they can export products and services. Such a decision was based on its own analysis of the reality facing the nation — that manufacturing sector-oriented moves cannot alone help Korea to accomplish the nation’s aim of attaining $2 trillion in global trade. 

“The nation now needs to help services industry companies sell their goods and services in foreign markets,” the president said. 

“We will also support exporters take advantage of booming e-Commerce and other new trade platforms. We will expand our presence in South America and Central Asia for local companies that seek ways to enter swiftly growing markets there,” he added.

Kotra also plans to assist exporters in taking advantage of free trade agreements (FTAs) the nation has signed, especially the Korea-China trade pact. Kotra will increase the number of employees at its offices in China to provide more support to the growing number of Korean firms operating in the neighboring country.

A view of the building in the Gangnam District in southern Seoul where Kotra has its head office.(Photos:Kotra)