KBIZ's 60-year journey in building a solid foundation for South Korea's small and medium enterprise community

With over 60 years of establishment and development, the Korea Federation of SMEs (KBIZ) has emerged as a pioneering force in supporting the small and medium-sized enterprise (SME) community in South Korea. Beyond fostering a fair and transparent business environment, KBIZ has also contributed to promoting international economic cooperation. The upcoming Vietnam-Korea Investment Cooperation Forum 2024 stands as a clear testament to KBIZ's efforts in fostering connections. 

On November 21, Hanoi will host the Vietnam-Korea Investment Cooperation Forum 2024, themed “Trust and Cooperation: Sustainable Development Strategies for SMEs”. This event serves not only to bolster economic cooperation between the two nations but also underscores KBIZ’s role in supporting SMEs in South Korea and Vietnam. Through this article, the Business and Integration Magazine invites readers to explore KBIZ’s contributions and the significance of this upcoming event in fostering connections and development between Vietnamese and Korean businesses. 

Founded in 1962, the Korea Federation of SMEs was established to represent the interests of over 8 million SMEs nationwide. Amid South Korea’s efforts to build a new economic development strategy, KBIZ emerged as a crucial partner, contributing to the balanced growth of the national economy. 

For over six decades, KBIZ has consistently worked to create a fair economic environment, enabling SMEs not only to survive but also to thrive sustainably. 

Small and medium-sized enterprises account for 99% of all businesses and 81% of the workforce in South Korea, playing a pivotal role in the country's economy. 

Recognizing this, KBIZ has dedicated itself to building a fair economy where SMEs receive robust support and can grow without being overshadowed by conglomerates. To this end, KBIZ has continuously advanced policies to foster shared growth between large corporations and SMEs, democratize the economy, institutionalize delivery price indices, and improve business succession systems. These efforts have instilled greater confidence among SMEs in a transparent and equitable business environment conducive to sustainable growth. 

KBIZ not only acts as a bridge for legal and policy matters but also implements practical initiatives to support SMEs. The federation established the SME Love Sharing Fund to broaden the social activities of enterprises. 

Additionally, the Golden Umbrella Mutual Support System—a social safety network for SMEs—provides essential support and protection for smaller businesses. Through these initiatives, KBIZ not only builds trust within the SME community but also fosters social responsibility, contributing to a positive image of South Korean SMEs. 

The current KBIZ Chairman, Mr. Kim Ki-mun, is a seasoned and passionate advocate for SME development. Elected as the federation’s 26th leader, Mr. Kim has reinforced KBIZ’s pivotal role in South Korea’s economy. Under his leadership, KBIZ continues to be a “beacon” for millions of SMEs, helping them overcome challenges, create jobs, and achieve continuous growth. 

In September 2023, as part of its efforts to enhance international cooperation and trade connectivity, KBIZ officially strengthened its partnership with the Vietnam Association of SMEs (VINASME) by signing a Memorandum of Understanding (MOU). This agreement opens numerous avenues for collaboration between enterprises in both countries. With support from both governments, KBIZ and VINASME reached significant agreements to help SMEs in both nations access international markets. This cooperation facilitates Vietnamese and South Korean SMEs in seeking potential partners, expanding markets, and promoting sustainable development. 

As of August 2023, South Korea remained Vietnam's largest FDI partner, with over 9,756 projects and a total registered capital exceeding $83 billion. In the first eight months of 2023 alone, South Korea ranked fourth among 100 countries and territories investing in Vietnam, with 308 projects and nearly $4.6 billion in total investment. 

In recent years, South Korea has consistently been Vietnam’s top investor, a status further affirmed when the bilateral relationship was upgraded to a Comprehensive Strategic Partnership in 2022. Notably, there has been a significant shift from basic processing industries to high-tech sectors, energy projects, finance and banking, mergers and acquisitions (M&A), and high-quality services. These developments present promising opportunities for deeper cooperation between the business communities of the two nations. 

With KBIZ and VINASME’s reputation and extensive experience in supporting SMEs, the activities outlined in the MOU will serve as leverage for both organizations to enhance meaningful support for their respective members. 

The MOU includes three main areas of collaboration: facilitating connections between SMEs through the networks of both associations; assisting SMEs in both countries in understanding markets and finding potential customers based on business demands. Promoting human resource activities and information exchange between the two associations to promptly update enterprises on emerging trends.  

Beyond these areas, both sides have committed to close collaboration in the future to assist SMEs in finding business partners and fostering substantive and results-oriented investment connections. They also aim to develop solutions to address current challenges faced by SMEs, such as credit financing channels and labor resources (e.g., deploying Vietnamese workers to South Korea and bringing Korean experts to Vietnam), and helping Vietnamese SMEs access science, technology, and digital transformation opportunities.  

As part of these efforts, VINASME and KBIZ will co-organize the Vietnam-Korea Investment Cooperation Forum 2024 on November 21 in Hanoi, under the theme “Trust and Cooperation: Sustainable Development Strategies for SMEs”. The forum, scheduled for mid-November, is expected to draw over 500 business representatives from both countries, including 350 from Vietnam and 150 from South Korea. High-ranking leaders from both nations are anticipated to attend.  

The forum will feature senior officials from both countries, including representatives from the Party, National Assembly, and Vietnamese government, as well as South Korea’s Ministry of SMEs and Startups, the Korean Ambassador to Vietnam, and leading business executives.  

During the forum, businesses will engage in B2B networking programs to explore partnerships and foster collaboration. This platform provides SMEs from both countries with opportunities to exchange experiences and explore investment and market expansion prospects.  

This forum not only marks a significant milestone in Vietnam-Korea relations but also serves as a gateway for Vietnamese SMEs to access South Korea’s technology, management expertise, and startup ecosystem. With support from KBIZ and VINASME, the event promises to provide a strong impetus for SMEs from both countries to build sustainable partnerships and grow together.  

With its long history, KBIZ not only advocates for the rights of South Korean SMEs but also positions itself as a trusted partner of VINASME, forging a robust bridge between the Vietnamese and South Korean economies. The Vietnam-Korea Investment Cooperation Forum 2024 represents a major step forward in sustainable development strategies for SMEs, offering a venue for businesses to strengthen relationships, expand markets, and share knowledge and expertise.

Bao Trinh