Korean govt’s export voucher program benefits over 1,000 SMEs

Kang Kyung-sung, the 22nd President of the Korea Trade-Investment Promotion Agency (KOTRA).

More than 1,000 companies joined the South Korean government’s Export Voucher program this year, a threefold increase from 2017 when the program was launched with 354 participants.

According to the Ministry of Trade, Industry and Energy and the Korea Trade-Investment Promotion Agency (KOTRA) on Wednesday, 1,150 companies benefited from the Export Voucher program this year.

The Export Voucher program provides financial assistance to export-focused companies in the form of vouchers.

Businesses share costs with the government, which covers between 50 to 70 percent, depending on company size.

Each participant receives funding ranging from 20 million won ($14,300) to 200 million won.

The program’s budget has surged from 17 billion won in its first year to 56.08 billion won in 2023.

KOTRA said the budget is set to grow by an additional 5 billion won next year.

Participants gain access to over 7,300 tailored services across 14 sectors, including consulting, marketing, overseas certification, and exhibition support.

The initiative has shown measurable results.

In 2022, companies in the program achieved an average export growth rate of 120 percent, significantly higher than the 6.3 percent average for Korea’s small and medium-sized enterprises.

Since the program‘s inception, the export volumes of participating businesses have increased threefold.

Korea’s tech startups, in particular, have particularly thrived under the program.

Mobile app security firm Stealien leveraged it to file and register five patents, overcoming challenges tied to local culture, legal systems, and translation. “Patent registration involves multilayered issues, but with the program’s support, we achieved tangible results,” said CEO Park Chan-am.

AI-based traffic solutions provider PentaGate successfully entered Southeast Asian markets this year with the program’s help.

The firm revamped its website for better product visibility, securing contracts with regional government agencies.

Such successes have made the program increasingly competitive.

Application ratios surged from 2.5 to 1 in 2022 to 10.2 to 1 this year, reflecting heightened demand.