A state visit of President Park, Geun-Hye to Germany, offering a foundation for companies to become “Hidden Champion”
-agreeing on support for SMS companies and M&A between Korean and Germany companies etc.
(President Park, taking picture with German Chancellor, Ms. Angela Merkel on 26th after summit meeting)
- With a state visit of President Park, Geun-Hye to Germany, Korean small and medium sized companies will have a solid foundation to become “Hidden Champion”.
- According to Cheongwadae(the Korean Presidential residence) on 30th, it said, “ Systematic and expansive cooperation model has been suggested, which lead practical effect in the future by offering cooperative platform among government, companies, research institutes and universities.
- Detailed agreements are as follows.
-establishing organic joint research for industrial technology that leads to commercialization
-fostering SMS companies to become ‘Hidden Champion”
-expanding successful model of academic-industrial cooperation
-supporting M&A between Korean and German Companies
- First of all, Korean and German governments agreed to establish cooperative system such as creating joint fund to support joint R&D of SMS companies, setting up joint R&D projects, supporting commercialization of joint R&D technology etc. Each government will offer approximately 1 billion KRW of financial support for projects in 2014.
- To this end, both government signed MOU to open consultative group for technical cooperation on a regular basis, conduct joint call for R&D projects and support commercialization for outcome of joint R&D on 27th. The support comes from fund of each government for companies.
- In addition, the governments agreed on support for Korean and Germany SMS companies which participated in economic mission to enter into Korean and German markets as interest on economic cooperation goes high with the visit. In fact, many companies which participated in economic mission signed contracts with business partners during previous trip abroad of President Park.
- And, with the visit, FAU(Friedrich Alexander University) Busan Campus and 24 German companies signed MOU for academic and industrial cooperation to expand similar academic and industrial model in Korea. FAU got an approval from MoE as foreign educational institute and established FAU Busan Campus in 2009.
- The first generation of FAU Busan Campus students completed their internships at Bayer Technology, Krones, Boehringer Ingelheim and Südzucker. Successive student generations will have their internship at companies such as Lohmann Therapy Systems, Schwan-Stabilo, Tesa, Linde, Campina as well as at research institutions such as the Leibniz-Institute, the Fraunhofer Institute etc.
- Furthermore, KOTRA(Korea Trade-Investment Promotion Agency) signed MOU with Bavaria Bank and Sachsen Economy Promotion Corporation to support M&A as Korean companies are highly interested in German companies with excellent technology. So, Germany will find German companies and KOTRA will arrange M&A with Korean companies.
- Both government will create and invest “M&A specialized fund” on a trial basis to promising M&A and run consultative group for M&A. MoTIE and KOTRA are supporting Korean SMS companies for their overseas expansion such as established global M&A support center, successfully arranging 9 M&A with foreign companies, etc.
- Also, Korean and German government agreed on supporting reinsurance of mid and long term trade insurance for more effective support on third power mid and long term project that both Korean and German companies jointly try to win a contract. If both Korean and German companies jointly export to a third country, Korean and German Export Insurance Corporations will offer original insurance and reinsurance depending on the amount.