, July 21, 2008

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3 Non-profit government agency implementing SME supporting policies Established: January 1979 Organization:, 4 19 KBDCs, 4 SBTIs Subsidiary Companies: Korea Venture Investment Corporation Employees: 760 Budget (FY2008): US$ 6.2 billion 19 Departments, 22 Regional Offices SB Distribution Center, SB Registrar Center

4 - Venture Business Start-up - Commercialization of R&D Results - Management Innovation & Stabilization - Industrial Structure Adjustment - Venture Business Start-up - Commercialization of R&D Results - Management Innovation & Stabilization - Industrial Structure Adjustment - Marketing Assistance - IT Promotion - Training Services - Consulting Services - International Cooperation - Marketing Assistance - IT Promotion - Training Services - Consulting Services - International Cooperation Financial Programs Non-financial Programs

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6 Manufacturing Mining & Construction Hotel & Tele- communication Wholesale Others Less than 200 employees or US$ 2.42M paid-in capital Less than 50 employees or US$ 3.2M operating profit IndustryKoreaTaiwan Less than 300 employees or US$ 8M paid-in capital Less than 300 employees or US$ 3M paid-in capital Less than 300 employees or US$ 30M Revenue Less than 100 employees or US$ 10M Revenue Less than 50 employees or US$ 5M Revenue

7 1,236, % 7,939, % Total: 1,266,050 SMEs: 1,236,012 (97.63%) Total: 10,294,000 SMEs: 7,939,000 (77.12%) Taiwan Source: Taiwan SME White Paper 3,017, % 10,884, % Total: 3,022,053 SMEs: 3,017,787 (99.9%) Total: 12,445,088 SMEs: 10,884,650 (87.5%) Korea No. of Companies (2006) No. of Employees (2006) Source: National Statistics Office

8 51,419 17% 53,763 35% Taiwan Total: 315,833 SMEs: 53,763 Total: 368,409 SMEs: 120,958 Source : Taiwan SME White Paper Total: 325,464 SMEs: 104,152 Total: 845,685 SMEs: 418, ,152 32% 50% 112,751 Export (2007) Output (2005) Korea Source : Korea Federation of Small and Medium Business Unit: Mil. USD (Manufacturing Sector)

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10 China is the third largest importer China is the second largest importer Sixth largest investor nation in China Third largest investor nation in China 10.65%10.88% Electronics, IT (LCDs, integrated circuits, optical instruments) ▪ 14 of the 20 main export products of both countries are of the same variety (* 60.6% of the total value of Korea’s exports to China) Business with China TaiwanKorea Trade with China Investment to China Import share from China Industries in Competition Remarks Competition arising from the following similarities - Traditionally export-led countries - Similar core industries - Large trade volume with China

11 Take comparative advantage of Taiwanese and Korean SMEs Maximizing each nation’s strengths - Taiwan : Digital parts production - Korea : IT components production Ex. Cooperation in on-line game industry - Successful Chinese market launch by utilizing Taiwan’s identical cultural background with China and its distribution channels. Practical support is necessary from SME-related organizations in Taiwan and Korea Co-advance into the Chinese Market

12 Hold Taiwan-Korea SME Conference - Increase opportunities for placing and receiving orders, technology transfers, and investments ▪ Available in Chinese, English, Korean & Japanese ▪ 22,645 firms & 102,363 product catalogs (880,000 hits/day) Encouraging active transactions of SMEs through “Gobizkorea.com” Activating Transactions and Technology Cooperation Exchange Industrial Coordinators - Arrange business matchmaking partners - Organize investment seminars & delegations

13 SBC needs a Taiwanese counterpart organization to implement cooperative projects Co-advance into the Chinese Market GobizKorea.com Taiwan-Korea SME Conference Exchange of Industrial Coordinators Key Points in Summary

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