South Korea, Italy sign MOU to boost cooperation on SMEs and cooperatives

South Korea's Ministry of SMEs and Startups said Saturday it signed a memorandum of understanding with the Italian government on cooperation for small and medium-sized enterprises and small businesses.

The MOU expands the scope of bilateral cooperation beyond SMEs to include manufacturing-based small businesses and incorporates exchanges between cooperatives from both countries to strengthen the two countries' partnership.

Italy is widely regarded as a country with deep traditional manufacturing capabilities and globally competitive luxury goods. Its small and medium-sized enterprises form the backbone of regional economies, sustaining the country's standing through distinctive brand value and innovative technology.

Italian cooperatives are considered one of the world's most ideal models, operating as networked ecosystems that rival large corporations in competitiveness.

The MOU calls for strengthening cooperation through exchanges between cooperatives and promoting mutual economic and technological exchange in the SME and small business sectors.

The agreement also carries significance as it broadens the foundation for Korean SMEs to enter European markets amid global supply chain realignment and the spread of protectionism. The ministry expects new cooperation models to emerge by combining Italy's strengths in fashion, design, machinery and food with the manufacturing and technology competitiveness of Korean small businesses. The ministry plans to pursue follow-up cooperation, including expanding networks between companies from both countries and identifying joint projects.

Noh met with Italian Vice Minister of Enterprises and Made in Italy Valentino Valentini the day before the MOU signing ceremony.

The two sides agreed on the need for cooperation in the SME and small business sectors and held in-depth discussions on practical areas of collaboration, including small business policy and cooperative exchanges, with plans to build on the partnership going forward.

"I hope South Korea and Italy will become economic partners that combine each other's strengths to open new markets and grow together," Noh said. "We will continue to engage with Italy to further expand the entry of our SMEs and small businesses into European markets."