On June 25, the Export-Import Bank of Korea hosted a conference for 40 CEOs of companies selected last May for the Korean Hidden Champion* Program, including Kumho HT and JNK Heaters. The conference was held at Building 63 Convention Center in Seoul.

* Mid-size enterprise ranked among the top five in its respective sector internationally and exporting more than USD 300 million in goods or services, or a mid-size enterprise with more than KRW 1 trillion in sales with exports comprising over 50% of its sales.

The Bank launched the Hidden Champion Program in November 2009.

To date, 225 firms have been selected for the Hidden Champion Program, which entails provision of financial support for trade and overseas investment and non-financial support such as legal consulting for international contracts and importer credit assessment.

In recent times, the global economy has been stagnant as Europe’s sovereign debt crisis lingers and growth slows in BRIC countries such as China.

In such environments, the role of exporting SMEs becomes of more importance than ever and the Bank aims to nurture Korean Hidden Champions to achieve a trade surplus of over USD 1 trillion for two consecutive years.

The Bank has already provided exporting SMEs with KRW 2 trillion, which is 60% of the 2012 target of KRW 3.5 trillion, as part of efforts to promote Korean exports.

In the event additional support is needed, the Bank is prepared to inject an additional KRW 500 billion for a total of KRW 4 trillion to Korean exporting SMEs this year.

Chairman Yong Hwan Kim of the Export-Import Bank of Korea stressed, “Germany’s economy*, unlike other EU nations such as Greece and Spain, is able to stay robust despite the European sovereign debt crisis because of its 1000+ Hidden Champions. Developing small, but potent Hidden Champions will help mitigate overseas volatility, which is crucial for an export-reliant economy, and will be a core strategy for sustainable export growth.

* Germany ranked third in exports in 2011 and recorded an unemployment rate of 5.4% in April 2012, its lowest ever (Eurozone: 10.3%, Greece: 22.6%, Spain 24.3%). [Source: CIA World Factbook]

In its fourth year of operation, the Hidden Champion Program is expected to yield seven or eight true Hidden Champions this year.