KOTRA and World Federation of Overseas Koreans Sign MOU for SME Overseas Expansion Cooperation

Leveraging Local Know-how of Korean Association Leaders in 76 Countries
Maximizing Synergy between Export Support Organizations and Private-Sector Expertise

The Korea Trade-Investment Promotion Agency (KOTRA) is joining forces with the chairs of Korean associations in 76 countries around the world to build a comprehensive global support system designed to help domestic small and medium-sized enterprises (SMEs and mid-sized companies) succeed in overseas markets.

KOTRA announced on September 29 that it had officially signed a Memorandum of Understanding (MOU) titled “Cooperation Support for SMEs and Mid-sized Companies Entering Overseas Markets” with the World Federation of Overseas Koreans (hereafter referred to as “the Federation”) at Songdo Convensia in Incheon the previous day. This agreement is significant in that it directly links the local Korean community, which is highly knowledgeable about overseas market conditions, with the nation’s primary export support agency, thereby generating concrete business synergies.

Kang Kyung-sung, President of KOTRA (right), and Ko Sang-gu, President of the World Federation of Overseas Korean Traders Associations, are taking a commemorative photo after signing a business agreement for the overseas expansion of domestic small and medium-sized enterprises on the 28th at Songdo Convensia. KOTRA

The World Federation of Overseas Koreans, officially launched in 2021, is a global non-profit organization comprised of current and former Korean association presidents from 76 countries worldwide. This organization brings together Korean communities across the globe, strengthening unity among overseas compatriots, while also driving cultural and economic exchange and cooperation with Korea, their homeland.

Presidents of Korean associations have lived abroad for extended periods, establishing robust human networks across politics and business. They also possess deep expertise regarding the characteristics of local markets and business practices, making them valuable guides for domestic companies seeking overseas market entry.

While SMEs and mid-sized companies may have less capital and fewer employees than large corporations, they play a central role in the national economy and job creation. However, they often face challenges such as limited funding and inadequate access to local market information when trying to enter overseas markets, meaning support from the government and related agencies is essential.

Starting with this business agreement, the two parties plan to work closely together in three core areas: (1) in-depth exchange of local information to support the overseas expansion of domestic SMEs and mid-sized companies, (2) joint events to develop overseas sales channels and expand business networks, and (3) cooperation in attracting investments from overseas Korean investors into promising domestic companies and local governments.

With this approach, SMEs in Korea—who often struggle to independently keep up with the latest market trends or identify legitimate buyers overseas—can leverage the extensive network of Korean associations spread across 76 countries almost as if they had their own local branch office, significantly lowering entry barriers.

Kang Kyung-sung, President of KOTRA, stated, “By combining KOTRA’s dense global organizational network with the vivid on-the-ground experience and know-how of the World Federation of Overseas Koreans, which represents the global Korean community, we will maximize the impact of our overseas expansion support for SMEs and mid-sized companies.”

This content was produced with the assistance of AI translation services.