According to Pulse by Maeil Business News Korea,

South Korea’s Korea Trade-Investment Promotion Agency (KOTRA) is playing a crucial role in helping the country’s small and medium-sized enterprises (SME) expand into overseas markets, with its 129 trade offices located in 84 countries worldwide serving as advanced bases for global trade.

An example is Sensortec Co., which had the technological capability for ultrasonic sensors necessary for car parking but faced difficulties in entering the ultrasonic sensor market due to the Japanese dominance in the market. The company sought to find a breakthrough via exports but found it difficult as a SME. However, after participating in KOTRA’s “Branching Project” for six years starting in 2017, in which KOTRA’s overseas trade offices serve as overseas branches for SMEs, Sensortec succeeded in supplying its products to Tata Motors Ltd. and Mahindra & Mahindra Ltd. in India. As a result, the company recorded $10.55 million in exports in 2021, up 62 percent from the previous year.

KOTRA’s project helps SMEs that are unable to set up their own branches overseas to explore and export to overseas markets. It provides customized support from market research for initial entry to full-scale market penetration and export. It also offers tailored services along the export journey from the preparation to export success through its “Export Voucher” system, which is a demand-driven export support policy. Under this system, a certain number of vouchers are given to companies requiring support, and they can choose the support they need.

Sensortec also utilized the ‘Sales Rep Service for Materials, Parts, and Equipment’ with the help of the Export Voucher system. The Sales Rep service connects SMEs with local personnel or local companies who can help with exports. A KOTRA official said that “SMEs are highly satisfied because locals who are knowledgeable about the local market directly assist with exports.”

Sensortec also benefited from the ‘Overseas Joint Distribution Center Project’ from 2022 for three years. As it is difficult for SMEs to establish their own logistics networks locally, KOTRA connects companies in need to jointly secure local distribution centers.

LTRA Global Co. is another example of a company that uses KOTRA’s platform to become an exporter. LTRA Global had been producing medical devices using laser technology that penetrate deep into the dermis layer but had no experience in exports. The company participated in KOTRA’s project to transform domestic companies into exporters in 2019 and was introduced to buyers in Azerbaijan and Turkey, enabling it to transition into an export company. LTRA Global recorded $1.08 million in exports in 2022 after hitting the $540,000 mark in 2021.

“Even for export-tech companies with good technology and products, expanding into overseas markets is a challenging endeavor,” according to Jeon Chun-woo, head of KOTRA’s small and medium-sized business division. “For over 60 years, KOTRA has acted as an overseas bases for our export companies through our accumulated know-how and overseas infrastructure.”


By Song Min-geun and Yoon Yeon-hae

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (Oct. 26, 2023)