Members of “K-Jangbogo Joint Overseas Market Entry Team”, dispatched by Korea Midland Power Co. (KOMIPO), pose for a group photo in front of the Matra Power Plant in Hungary. (Photo: KOMIPO)
Korea Midland Power Co. (KOMIPO) is an exemplary public entity that translates shared growth with SMEs into action. KOMIPO has been recognized for implementing shared growth projects. The power company was granted the top grade, “excellent class,” in an evaluation of public entities over shared growth conducted by the Ministry of SMEs and Startups for the fourth consecutive year in 2018.
The reputation is owed to KOMIPO’s diverse efforts to provide support to SMEs, such as the successful implementation of the K(Komipo)-Janbogo Project, KOMIPO’s joint overseas market entry project with SMEs, and the nurturing of startups, founded by youth and middle-aged adults.
On top of these, KOMIPO is making efforts to help SMEs have more access to export opportunities as the power company procures certified homegrown products made by SMEs for use at its international worksites and it gives SMEs opportunities to put their names on the vendor list of global players. Thanks to KOMIPO’s help, 21 SMEs were put on the list of General Electric of the United States, 17 SMEs made it on the list of Mitsubishi Hitachi Power System in 2017, 15 more SMEs were registered on the list of MHPS in 2018.
For instance, Seonghwa exported power generation equipment pipes worth 12 billion won last year thanks to its registry into the vendor list of MHPS.
KOMIPO dispatched “K-Jangbogo Joint Overseas Market Entry Team” to Hungary in May. The team, comprising of 11 KOMIPO members and two in-house venture firms, succeeded in striking letters of purchase intent worth a combined about 500,000.
KOMIPO operates trading companies in various countries, which help products made by Korean SMEs explore overseas markets. The power company operates Cheonghaejin Trading Co. each in Jakarta, Cirebon, Indonesia, and Kuala Lumpur.
The trading company offers support such as local market entry and marketing activities through networking with companies which have already successfully entered markets. KOMIPO has played a key part in the successful implementation of global test-bed projects.
Last year, four deals were struck in connection with the Tanjung Jati Thermal Power Plant test-bed Project. Thanks to the project, member companies of KOMIPO’s joint overseas market entry consulting committee posted cumulating exports worth $175 million.
KOMIPO is striving to tackle unemployment of youth and middle-aged adults, which emerges as a tricky social issue.
The power company offers support to youth with fresh ideas and middle-aged adults with excellent technology and career who want to launch startups. The program involves full supports in all stages ranging from the exploring of startups via a startups contest to application of intellectual property rights, the provision of operational funds, the supporting of their participation in overseas exhibitions and startup commercialization.
Ten companies were selected in a startup contest that took place last year, and each was assisted with 50 million won in startup fund and startup space. One of the companies selected in the 2017 contest participated in a program of experiencing an overseas market entry that took place in Ho Chi Minh City, Vietnam and the company signed an MOU on attracting investments with a Vietnamese company.
KOMIPO implements a mutual aid to induce the staying of current jobs by key personnel from SMEs and join forces in narrowing wage differences between large- and small-sized companies through shared growth along with other members of the top eight conglomerates designated by the Korea Commission for Corporate Partnership (KCCP).