Korea SMEs and Startups Agency signs MOU with Chilean counterpart to boost Latin American market entry

The Korea SMEs and Startups Agency has partnered with a Chilean small business support agency to strengthen assistance for Korean small and medium-sized enterprises and startups seeking to enter Latin American markets.

The agency signed a memorandum of understanding with Chile's Small Business Technology Cooperation Corporation (SERCOTEC) on Monday (local time) at the Moneda Bicentenario government complex in Santiago, the agency announced Tuesday. The MOU aims to help small and medium-sized enterprises from both countries expand into overseas markets and sharpen their competitiveness.

SERCOTEC operates under Chile's Ministry of Economy and supports startups and business growth, digital transformation and market development through a nationwide network of 62 business development centers, known as CDNs.

The signing ceremony was attended by Korea SMEs and Startups Agency Executive Director for Human Resources Development Jo Han-gyo and SERCOTEC President Henry Azurmendy Toledo. The two agencies agreed to expand their cooperation framework for supporting small businesses' overseas expansion, building on their existing relationship.

Under the MOU, the two agencies will share small business support policies and operational experience, and pursue personnel exchanges related to startup support and workforce development programs. They also plan to provide market information to companies seeking to enter each other's markets, cooperate in the online commerce sector, and jointly run seminars and training programs.

The Korea SMEs and Startups Agency will use its Global Business Center (GBC) in Santiago as a base to identify Korean small and medium-sized enterprises and startups interested in entering the Chilean market. SERCOTEC will leverage its 62 business development centers across Chile to connect those companies with local firms and support organizations.

Through this arrangement, the two agencies plan to pursue concrete cooperative projects in stages, including business matching between Korean and Chilean companies and market-entry consulting. Sharing information on local industrial policies and project bidding opportunities is also included among the areas of cooperation.

The MOU broadens the points of contact through which Korean small businesses can connect with local firms and support agencies when entering the Chilean market. By linking the Santiago GBC with business development centers across Chile, the two sides expect to uncover cooperation opportunities with regional companies beyond the capital. However, translating the partnership into actual exports and business results will hinge on identifying the right local partners for each company's needs and providing follow-up support.

The Korea SMEs and Startups Agency and SERCOTEC have cooperated before. In 2023, they jointly held a policy seminar in Santiago for Korean companies operating in Chile. Last year, they also supported the development of Chilean startups using technology from companies based at the Santiago GBC.

"We will actively connect the Santiago Global Business Center's network with SERCOTEC's local network to support Korean small and medium-sized enterprises and startups in entering the Chilean market, and work to expand cooperation between companies from the two countries," Jo said.