Gyeonggi Province has increased the level of annual support provided to small and medium sized companies to assist them in acquiring overseas standard certification, which has led to some positive results in export promotion.

On the 17th, a Gyeonggi Province official said that the amount of support available was increased to KRW 500 million for 900 companies in 2006, compared to KRW 100 million for 21 companies in 2000. The amount of aid provided is expected to reach a record high this year.

The official said, “The plan for 2007 is centered on the process of acquiring standard certification. The number of successful outcomes, as well as the level of support, will be more than doubled this year, as 240 companies will be entitled to the support program compared to the 110 companies that were supported last year.” Gyeonggi Province plans to earmark KRW 1.2 billion in funding to assist small companies in obtaining overseas product certification.

Many SMEs in Gyeonggi Province have responded positively to the program. A staff member from KNC said, “When we first entered the U.S. market with our products to obtain overseas product certification, we didn’t know what we should do. At that time, the government of Gyeonggi Province fully supported our advance into the market.” He also added that the province’s support program is essential for many SMEs.

The support program to help companies obtain overseas standard certification was launched 8 years ago. Many countries around the world have established standards in terms of safety and environmental protection, and apply a certification mark or logo to products that meet the standard for distribution and sale. However, many small and medium-sized companies have difficulty in acquiring these certification marks, due to a lack of skilled workers or insufficient information regarding overseas markets.

Taking such difficulties into consideration, Gyeonggi Province provides partial financial assistance to SMEs in the acquisition of 92 different overseas standard certifications, including CSA (Canadian Standards Association), CE (Conformance European), GOST (Russian safety standards) and CCC (China Compulsory Certification mark).

This program is targeted at SMEs who record less than USD 5 million in exports annually, and who have manufacturing facilities or offices in Gyeonggi Province. It also provides SMEs with a subsidy amounting to 50 to 60% of their certification processing fee, according to their performance in the previous year. The amounts provided are a maximum of KRW 8 million for product certification, KRW 3 million for system certification and KRW 10 million for combined certification (product + product, or product + system). In 2006, 703 companies applied to the certification support program and out of these, 99 companies received financial aid.

A Gyeonggi Province official said, “We will encourage promising SMEs who have adequate technology but a weak export base to improve their competitiveness. The positive reaction from companies regarding the effectiveness of this program is encouraging us to promote it more actively.”