KHNP boosting support for SMEs
Officials from small firms listen during a seminar at an imported plant equipment exhibition hosted by Korea Hydro & Nuclear Power (KHNP) at BEXCO, Busan, in November, 2012. / Courtesy of KHNP
By Cho Mu-hyun
Korea Hydro & Nuclear Power (KHNP), the state-run nuclear power supplier, has vowed to increase financial support for small-and mid-sized enterprises (SME).
It said it will provide 300 billion won worth of support, an increase from last year’s 250 billion won, and uphold the new administration’s stated initiatives for joint growth between conglomerates and SMEs.
Last year, it paid its partner SMEs struggling with financial troubles around 140 billion won in advance to keep ongoing projects afloat. It also provided 20 billion won to a fund run by the Ministry of Strategy and Finance, which will give loans to SMEs at lower borrowing costs.
KHNP also paid up to 80 percent of the operating expenses for SMEs that have successfully clinched a contract.
It plans to help companies with good products sign deals with Export-Import Bank of Korea (Korea Eximbank) while financing those who signed export deals abroad.
Besides financial assistance, the nuclear power supplier said it will initiate joint research and development projects to localize many foreign technologies.
In November last year, it held an exhibition that displayed imported equipment in its storage for SMEs to view and imitate. Over 1,500 people from 500 companies attended the event in BEXCO, Busan. This year the exhibition will take place in August 28 to 29 at the same location.
KHNP currently cooperates with 10 research agencies and will secure 30 billion won that will go in SMEs’ development for advanced equipments for three years.
It plans nine tours on various nuclear plants in the country to help SMEs find new markets abroad. A total of 315 companies will attend.
To help them export, KHNP currently runs an education program to help SMEs earn certificates from the American Society of Mechanical Engineering. It recently held a seminar with Doosan Heavy, Korea Eximbank, Korea Trade-Investment Promotion Agency and Korea International Trade Association under the theme “co-growth abroad,” and vowed more of its kind in the coming months.
KHNP currently works with 400 subcontractors and have loaned them 12.5 billion won at interest rates 1.4 to 2.4 percent lower than market rates. It also runs a data base that assesses whether all employees of subcontractors were fully paid in due time.
It runs education programs for employees of SMEs, with 27 classes last year attended by 993 individuals. This year they expect more classes for over 2,500.