christy lee

8/12/2019 Christy Lee

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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 )


3. Fostering SMEs


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


3. Fostering SMEs


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



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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



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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

christy lee

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