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Fostering SMEs via Developing theGlobally Competitive Human Capital-The Experience of Korea
Ms. Christy LeePresident & CEODaewon Advisory Services
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Contents
How Korea Made it?- Developing Globally Competitive Human Capital
Fostering SMEs via Effective Training
Key Lessons Learned & Implications to KSA
Why Korea?
C
o n
t e n
t s
Fostering SMEs via Developing the Globally Competitive Human Capital
Ms. Christy Lee
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Why, on earth, KOREA?
Aerial v iew of Seoul in 1950s
Aerial view of Seoul Today
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2. How Korea Made it?
3. Korean SMEs
4. Key Lessons Learned &Implications to KSA
1. Why Korea?
Why Korea?
Industrial Base was Totally Destroyed During the War
- Korean War (1950 - 1953) Average annual growth rate during the war : -19% Amount of damage : US$ 5.5 billion Total Civilian Casualties: 2.5 Million
Seoul during the Korean War
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Over 500 times GDP growth, 300 times trade volume growth
(KRW BN, 1USD=1100KRW)
GDP Growth (Nominal)
USD 2BN(1970)
USD 1,007BN(2010)
(USD MN)
Trade Volume
(Source: www.investkorea.org)
Peter Drucker, Post-Capitalist Society
Korea provides us a key example of an undeveloped nationwithout natural resources jumped into an industrial society, thatwe cannot discuss the history of 20 th century economicdevelopment excluding Koreas amazing economic development.
USD 3BN(1970)
USD 900BN(2010)
Why Korea?
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Small but Strong Economy
Ship-building
MemoryChip
LithiumBattery Auto Steel
WorldRank 1
1 1 5 6
MarketShare 48% 55% 40% 6% 5%
KoreanCompanies
HyundaiHeavy Ind.,
DSME Samsung,
Hynix Samsung SDI ,
LG Chem Hyundai,
KIA POSCO,Hyundai
Steel
Koreas World -Class Products (2011)
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Emphasis on patriotism and
self-sacrifice Determined leadership by
suggesting clear visions My life for my country and for
the people Thrift
How Korea Made it?
H.E. Late President Park, Chung-Hee (1917 1979 )
2. How Korea Made it?
3. Fostering SMEs
4. Key Lessons Learned &Implications to KSA
1. Why Korea?
President of Korea 1963-1979 (16 yrs)
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How Korea Made It?
Instilling Pride & Honor
Excelled in the Intl Youth Skill Olympics - Korea Wins Gold Medal 17 times(1977-2011)
Promoting Engineers and Skilled Technicians
Promotion of Science & Technology KIST, KAIST, Daeduck Science Park
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How Korea Made It?
Monthly Export Promotion Meeting Presidedby the H.E. Late President Park, Chung-Hee
Close Partnership: Government & Private Sector
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SAMSUNG GROUP Founder & Chairman: Lee, Byung Chul ( 1910 - 1987 )
Samsung Groups Opening of
Shared IT system: 1974
Samsung has clear standards when
deciding a new business ;
national needs,
sympathy of Korean people and
potential for global competitiveness.
Considering this, we will develop a
semiconductor business.
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Korean Education
President Obamas View on Korean Education
"In South Korea , teachers are known asnation builders. I think it's time wetreated our teachers with the same
level of respect right here in the UnitedStates of America."
In the space of a little more than ageneration, [South] Korea hasdeveloped one of the worlds best-
educated workforces and fastest-growing economies.
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Small and Medium Enterprises
Affiliated government organizationGuarantee agencies Financial Institution
Execution of SMEpolicies
Financial support Consulting &
Training
Financialsupport
Managementconsulting
Provision ofguarantee
Managementconsulting
Overview of Korean SME Organizations
Investment ofVenture capital Education
Financial supportfor Micro Enterprise
Start up fund Start up consulting Training for Micro
Enterprises
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Status of Korean SMEs
0%
20%
40%
60%
80%
100%
Total Number
of Companies
Total Number
of Employees
The Amount of
Production
The Amount of
Exports
0.1
12.3
52.467.7
99.987.7
47.6
32.3
Large Enterprises SMEs
99 -88 SMEs
2. How Korea Made it?
3. Fostering SMEs
4. Key Lessons Learned &Implications to KSA
1. Why Korea?
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New Governments Policy Goals for SME
New Governments Policy Goals for SME support
Shared growth betweenConglomerates and SMEs
R&D Support for SME Procurement
Fair opportunities for market entry
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Start-Up Academy
Practical training for newstart-ups & for youthentrepreneurs
E-Learning Training
Online courses on start-up,management, & case studiesof successful businesses
Management ImprovementTraining
Training on management improvementto foster ability to cope with suddenchanges.
SEDAs Training Programs for Micro Enterprises
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Innovation Academy($7Mil support for 24,000 in 2013)
Practical training for start-ups
Training for those who want to switchthe business to another businessarea
Youth Entrepreneurs start-up inoverseas
SEDAs Training Programs for Micro Enterprises
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Management Improvement Training($7.8Mil for 53,000 in 2013)
Sector Specific Training: 1,555
Region Specific Training: 300
Micro-Enterprise InnovationAcademy: 500
SEDAs Training Programs for Micro Enterprises
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Training Programs 05 07 09 11
Innovation Training 246 1,005 11,841 101,596
Management Improvement
Training- 23,414 112,094 104,126
E-learning Training - - 75,059 338,088
Total 246 24,419 198,994 543,810
Category '05 '07 '09 '11
Budget(100 million KRW) 5.3 16.5 65 50
Number of
Consulting 1,102 2,634 8,764 7,645
Legal Aid 26 104 346 314
Category 07 09 11
Ratio of enterprises with increased
revenues43.0% 60.0% 58.2%
Revenue increase rate - - 3.8%
Satisfaction Level 76.3% 84.5% 83.5%
SEDA Support for Micro- Enterprises
Training
Supports
Results
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SBC Support for Youth Entrepreneurs
One-stop training center to nurture young CEOs by providing all theresources needed for starting a business: (300 CEOs per year)
Start-up training
R&D support
Prototype production
Start-up loans after training period
2013 Budget: $23 million(Support up to: $100K/person)
Youth Entrepreneurship Training Program
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Clear and Shared Vision : Communicate with your people
A Dedicated Government Agency was effective
Close Partnership between Government & Private Sector
Ensure strong execution of policies: Speed matters!
Foster a spirit of competition and enhance efficiency
Educate, Educate, Educate!
Key Lessons from Korea and Implications for KSA
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Learning Journey to Korea: Incubating & Fostering SMEs
Visit to Leading SMEs with Innovative Technologies in Korea
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Mr. Rashid Al Nuaimi,
Vice President Human Capability GASCO
Thank You