Small and medium-sized enterprises in South Korea and Japan are expanding cooperation on shared challenges including artificial intelligence transformation (AX), digital transformation (DX) and global supply chains. After holding an SME economic forum in Tokyo last year, the two countries convened again in Seoul this year, building a foundation for regular exchanges. The two sides plan to move beyond discussion toward practical cooperation by industry.
Kim Ki-mun, chairman of the Korea Federation of SMEs (KBIZ), praised the significance of the forum at the 2nd Korea-Japan SME Economic Forum held at KBIZ headquarters in Yeouido, Seoul, on the 14th. "Small and medium-sized enterprises in Korea and Japan form the foundation of each country's economy and industry, so it is important that we meet continuously to share on-the-ground concerns and solutions," he said.
The forum was arranged to share changes in the industrial environment and policy challenges facing SMEs in both countries and to explore new opportunities for cooperation. Following last year's event in Tokyo and this year's in Seoul, the forum is establishing itself as a "shuttle exchange" cooperation platform that alternates between the two countries.
Participants focused on key issues for the SME sectors of both countries, including global growth strategies for small businesses, AX and DX transformation, and business succession.
Shim Jae-yoon, director general for global growth policy at the Ministry of SMEs and Startups, spoke first, introducing Korea's SME policies and global growth strategy and proposing areas of cooperation that draw on the industrial strengths of both countries. Fuse Hiraku, vice president of Fuji Filter Korea, then presented successful cases of entering global markets by combining Japanese quality control with Korean productivity. Fuji Filter Korea manufactures filters used in oil and gas operations and petrochemical plants.
Hong Jin-heon, an executive at LG CNS, drew on cases of SMEs pursuing AX to propose a cooperative model between large companies and smaller firms aimed at raising productivity and creating new business opportunities. Finally, Saeki Norihiko, a division director at Japan's Small and Medium Enterprise Agency, explained major issues facing Japanese SMEs — including measures for passing on cost increases, business succession through mergers and acquisitions, and AX and digitalization — along with the government's policy responses.
With exchanges between the SME sectors of the two countries spreading into individual industries, the forum is expected to serve as an occasion to make cooperation by sector more concrete. Since the first forum last year, follow-up cooperation has continued, led by industry associations in ready-mixed concrete, baking and auto parts. In April this year, the ready-mixed concrete associations of the two countries held a meeting, and an exchange session between auto parts associations is planned for next year.
"We will continue to expand the venues for exchange so that SMEs in both countries can create new opportunities for cooperation by drawing on their technology, experience and networks," Kim said.