1. Fostering SMEs via Developing the Globally Competitive Human Capital
-The Experience of Korea
Ms. Christy Lee
President & CEO
Daewon Advisory Services

2. Fostering SMEs via Developing the Globally Competitive Human Capital
Contents
How Korea Made it?
- Developing Globally Competitive Human Capital
Fostering SMEs via Effective Training
Key Lessons Learned & Implications to KSA
Why Korea?
Contents
Fostering SMEs via Developing the Globally Competitive Human Capital
Ms. Christy Lee

3. Why, on earth, KOREA? Aerial view of Seoul in 1950’s
Aerial view of Seoul Today

4. Seoul during the Korean War
Why Korea?
Industrial Base was Totally Destroyed During the War
2. How Korea Made it?
3. Korean SMEs
4. Key Lessons Learned &
Implications to KSA
1. Why Korea?
Seoul during the Korean War
- Korean War ( )
Average annual growth rate during the war : -19%
Amount of damage : US$ 5.5 billion
Total Civilian Casualties: 2.5 Million

5. Over 500 times GDP growth, 300 times trade volume growth
Why Korea?
Over 500 times GDP growth, 300 times trade volume growth
GDP Growth (Nominal)
Trade Volume
(KRW BN, 1USD=1100KRW)
(USD MN)
USD 1,007BN
(2010)
USD 900BN
(2010)
USD 3BN
(1970)
USD 2BN
(1970)
Peter Drucker, 『 Post-Capitalist Society 』
‘Korea provides us a key example of an undeveloped nation without natural resources jumped into an industrial society, that we cannot discuss the history of 20th century economic development excluding Korea’s amazing economic development.’
(Source:
Copyright ⓒ Daewon Advisory Services, 2013

6. Small but Strong Economy Korea’s World-Class Products (2011)
Ship-building
Memory
Chip
Lithium
Battery
Auto
Steel
World
Rank 1 5 6
Market
Share
48%
55%
40% 6% 5%
Korean Companies
Hyundai Heavy Ind., DSME
Samsung,
Hynix
Samsung SDI,
LG Chem
Hyundai, KIA
POSCO,
Hyundai Steel
Copyright ⓒ Daewon Advisory Services, 2013

7. How Korea Made it? H.E. Late President Park, Chung-Hee (1917 – 1979 )
Emphasis on patriotism and
self-sacrifice
Determined leadership by suggesting clear visions
“My life for my country and for the people”
Thrift
2. How Korea Made it?
3. Fostering SMEs
4. Key Lessons Learned &
Implications to KSA
1. Why Korea?
박정희는 경제적으로 검소한 생활을 하였다고 한다. 넥타이, 만년필, 전기면도기 세 가지를 빼고는 모두 국산을 사용하였으며 국산 넥타이를 매면 마디가 잘 풀려서 상공부에 넥타이에 대한 특별지시까지 했으나 풀리지 않게 하는 납처리 기술을 로열티를 지불하고 도입할 처지가 못되어 결국 생전에 국산 넥타이를 마음껏 매보지 못했다고 한다.
미국 맥도널드사의 중역 데이빗 심슨이 월남전당시 청와대를 방문하여 M-16을 수입하기로 결정한데 대한 보답으로 100만 달러의 뇌물을 건냈으나 박정희는 거부하고 그 돈만큼의 소총을 더 달라고 말했다는 일화
데이빗 심슨은 "나는 그의 얼굴에서 한 나라의 대통령이 아닌 아버지의 모습을 보았다”고 회고했다고 한다.
President of Korea (16 yrs)

8. How Korea Made It? Instilling Pride & Honor
• Promoting Engineers and Skilled Technicians
• Promotion of Science & Technology – KIST, KAIST, Daeduck Science Park
• Excelled in the Int’l Youth Skill Olympics
- Korea Wins Gold Medal 17 times
( )

9. How Korea Made It? Close Partnership: Government & Private Sector
Monthly Export Promotion Meeting Presided
by the H.E. Late President Park, Chung-Hee

10. SAMSUNG GROUP Founder & Chairman: Lee, Byung Chul ( 1910 - 1987 )
“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.”
Samsung Group’s Opening of Shared IT system: 1974

11. Korean Education President Obama’s View on Korean Education
“In the space of a little more than a generation, [South] Korea has developed one of the world’s best-educated workforces and fastest-growing economies.”
"In South Korea, teachers are known as nation builders. I think it's time we treated our teachers with the same level of respect right here in the United States of America."

12. Small and Medium Enterprises
Overview of Korean SME Organizations
Guarantee agencies
Affiliated government organization
Financial Institution
Provision of guarantee
Management consulting
Execution of SME policies
Financial support
Consulting & Training
Financial support for Micro Enterprise
Start up fund
Start up consulting
Training for Micro Enterprises
Financial support
Management consulting
Investment of Venture capital
Education
Small and Medium Enterprises

13. Status of Korean SMEs “99-88” SMEs 1. Why Korea? 2. How Korea Made it?
3. Fostering SMEs
4. Key Lessons Learned &
Implications to KSA
1. Why Korea?
Copyright ⓒ Daewon Advisory Services, 2013

14. Shared growth between Conglomerates and SMEs
New Government’s Policy Goals for SME
New Government’s Policy Goals for SME support
Shared growth between Conglomerates and SMEs
R&D Support for SME
Procurement
Fair opportunities for market entry

15. SEDA’s Training Programs for Micro – Enterprises
Start-Up Academy
Practical training for new start-ups & for youth entrepreneurs
Management Improvement Training
Training on management improvement to foster ability to cope with sudden changes.
E-Learning Training
Online courses on start-up, management, & case studies of successful businesses

16. SEDA’s Training Programs for Micro – Enterprises
Innovation Academy ($7Mil support for 24,000 in 2013)
Practical training for start-ups
Training for those who want to switch the business to another business area
Youth Entrepreneurs start-up in overseas

17. SEDA’s Training Programs for Micro – Enterprises
Management Improvement Training ($7.8Mil for 53,000 in 2013)
Sector Specific Training: 1,555
Region Specific Training: 300
Micro-Enterprise Innovation Academy: 500

18. Management Improvement Training
SEDA Support for Micro- Enterprises
Training
Supports
Results
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
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 revenues
43.0%
60.0%
58.2%
Revenue increase rate -
3.8%
Satisfaction Level
76.3%
84.5%
83.5%

19. Youth Entrepreneurship Training Program
SBC Support for Youth Entrepreneurs
Youth Entrepreneurship Training Program
One-stop training center to nurture young CEOs by providing all the resources 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)

20. Key Lessons from Korea and Implications for KSA
√ 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!

21. Visit to Leading SMEs with Innovative Technologies in Korea
Learning Journey to Korea: Incubating & Fostering SMEs
Visit to Leading SMEs with Innovative Technologies in Korea

22. Vice President, Human Capability, GASCO
Thank You
Mr. Rashid Al Nuaimi,
Vice President, Human Capability, GASCO