Gov't to push 100,000 SMEs into IT sector

As part of efforts to improve the competitiveness of small- and medium-sized enterprises (SMEs), the government will push for a project to turn about 100,000 SMEs into information technology (IT) firms.

In addition, the government will change its corporate restructuring strategy beginning next year such that the present tendency toward massive exits from the market is replaced with frequent liquidations of nonviable companies.

The government held a meeting of the ruling party and economy-related ministers Thursday and arranged a package of policy measures to manage the economy next year. Among them are measures aimed at stabilizing financial markets and improving the competitiveness of SMEs.

To begin with, the government decided to organize a support group for "informationizing" SMEs, consisting of representatives from both government and private organizations such as the Federation of Korean Industries, the Ministry of Commerce, Industry and Energy and the Small and Medium Business Administration. The government will also designate and operate areas for promoting informationization and digital-industrial complexes.

The group will offer active support for SMEs to reestablish themselves on the basis of IT. It will extend support for the establishment of LAN, homepages and in-house information systems; mechanisms for controlling production procedures and improving the financial structure; and ways of organizing B2B networks and marketing efforts.

Kwon Soon-Hwal shkwon@donga.com