Job creation is at the center of the government’s policy to promote the creative economy. However, the government has made little progress in expanding the job market partly due to the prolonged global economic slowdown. 

Hence, it is striving to address the issue from a corporate perspective and it is against this backdrop that the government has appointed Joo Young-sup who has a 30-year background in business to head the Small and Medium Business Administration, a government agency that supports small and start-up firms.

Joo, 59, has served as a CEO of GE Thermometrics’ Korea unit and Hyundai Autonet, a professor at Seoul National University and a member of the presidential advisory group on national economy. 


Since SMBA Administrator Joo took office early this year, he has focused on resolving the problems faced by Korean companies due to the recent closure of the Gaeseong Indutrial Complex in North Korea in the wake of the communist country’s provocations.

During a recent interview with The Korea Herald, administrator Joo revealed his views on how to boost “high-quality jobs” and ways to strengthen international competitiveness of the nation’s small and medium-sized companies. The following is an excerpt from the interview.

Korea Herald: The nation’s economy is suffering from a decline in exports and weak domestic consumption. To revitalize the economy, experts said start-ups should grow as they offer new jobs, in particular to young job seekers. Do you have any plans to drum up the venture spirit?

Joo Young-sup: Establishing start-ups is a part of job creation as it is tantamount to creating new companies. Jobs will also be created when companies grow, so we should help companies expand their markets at home and abroad. New companies can be categorized into two groups that each target foreign and domestic markets. Making start-ups for the domestic market is like a zero-sum game as one start-up expands while another shrinks. Therefore, the SMBA will support a combination of technical skills and a focus on the foreign market as the core for small businesses. This will help readjust our economy overcrowded by small enterprises.

KH: To expand into foreign markets, technical skills are vital. What should small and medium-sized firms focus on in research and development?

Joo: Small companies must combine technical skills and increase investment in the R&D sector. Currently, domestic small companies invest 1.4 percent into R&D in their revenues. However, compared to the investment of 3.4 percent into R&D by Japanese and U.S. companies, domestic investment is extremely poor. Therefore, we should boost technological competitiveness to vie in foreign markets. 

In addition, it is also needed to raise brand value of our companies in the global business-to-customer sector. This is why we are trying to use the advantage of the popularity of Korean pop culture. The Korean Wave must be included as a marketing strategy.

KH: Please explain the third-generation entrepreneurs that you are advocating. 

Joo: While the first generation businessmen such as the late Hyundai Group founder Chung Ju-yung created something from nothing. Many of the second-generation businessmen, who had exceptional ability to create the boom of start-ups without government assistance, are unfortunately currently bankrupt. However, the third-generation businessmen from the current second start-up boom are not at risk of bankruptcy as there is steady government support for start-up venture firms. To further ensure the development of successful entrepreneurship, the Education Ministry will require entrepreneur education from 2018 as many foreign countries provide mandatory entrepreneur training to businessmen.

KH: The nation is facing difficulties in its export push mainly led by conglomerates. What plans does the government have for small businesses to make a breakthrough?

Joo: Because conglomerates, which have long led the nation’s exports, are now producing goods abroad, not at home, the government is counting on small businesses to recover the Korean export industry. As a way to reform the chaebol-centered export strategy, the SMBA is focusing on fostering small businesses to lead the Korean trade. We aim to increase small and medium-sized firms by more than 5,000 and have their combined exports reach $200 billion by the end of this year. To achieve this goal, we, with the help of export-related government agencies, will concentrate all resources to expand exports to target countries such as China, the United States, and Japan with a focus in the information and communications technology sector as well as the automobile parts field.

KH: What are the future plans for the SMBA, especially relating to its efforts to help the crisis-stricken companies working in the Gaeseong Industrial Complex?

Joo: After the shutdown of the Gaeseong Industrial Complex early this year, the SMBA has since been working to solve problems like the delivery of goods on time. I think it is necessary to work out measures aimed at normalizing management on a long-term base such as finding an alternative site to replace the Gaeseong industrial park.

By Lee Kwon-hyoung  (kwonhl@heraldcorp.com)
and Lee Seo-young (seoyounglee@heraldcorp.com)