Latest forecasts show, according to the OECD, an increasingly negative impact of the pandemic on the global economy: a halt in production, a collapse in consumption and confidence, and stock exchanges responding negatively to heightened uncertainties. These various impacts are affecting both larger and smaller firms but it is no question that small and medium-sized enterprises (SMEs) are affected more harshly than large conglomerates. The South Korean government spares significant policy efforts to address SMEs’ liquidity gap, to foster their resilience and to strengthen their global competitiveness.
In this context, various state-owned enterprises in South Korea participate in these endeavors. One of the largest state-owned corporations, the Korea Electric Power Corporation (hereafter, KEPCO), is also on the plan to strategically foster SMEs and start-ups in the energy industry. The KEPCO is responsible for the generation, transmission and distribution of electricity and the development of electric power projects including those in nuclear power, wind power and coal.
The KEPCO newly established social value focused goals to reinforce the link between mid-to long-term strategies and sustainability management. It mapped out its scheme to create environmental and social value for sustainable growth. As part of these efforts, it has established an environment for shared growth with SMEs by expanding cooperation to improve the technical competitiveness of SMEs and supporting SMEs seeking export channels.
The KEPCO is continuously building a startup ecosystem in the energy sector. Its annual report says its cumulative achievements in 2019 are that it executed R&D projects in collaboration with 84 SMEs, signed USD 12 million in export contracts with 147 SMEs participating in the market and fostered 246 energy start-ups. As of the end of June 2020, fund investment project of 64.4 billion KRW was provided to 27 ventures and SMEs, and 31 billion of the fund was provided to foster selected 11 SMEs which were in secondary batteries, and electric vehicle areas.
Furthermore, it dispatched a market pioneer team to provide SMEs with overseas marketing opportunities. The team provides export consultation, opportunities for product promotion optimized for local demand, overseas marketing support, and cooperative R&D product purchasing. Going forward, the KEPCO is expected to establish a foundation for sustainable growth in cooperation with SMEs and startups, by utilizing the competitiveness of its own specialized transmission and distribution technology.
Kayla Hong
Asia Journal
(Los Angeles Times Advertising Supplement)
