An Empirical Study on the Digital Trade Status of Small and Medium-Sized Businesses in Korea: A Focus on the Top 5 Promising Consumer Goods

Abstract

Purpose - With the digitalization of trade becoming a hot topic again in the international trade sector, this study aimed to present policy implications for expanding digital trade by exploring the current status of Korean small and medium-sized enterprises (SMEs). Design/Methodology/Approach - Based on a literature review and available statistical data, the trend of global trade digitalization was theoretically considered. On the other hand, the current status of digital trade was analyzed empirically based on a survey of Korean SMEs. Findings - Digitalization of trade brings an opportunity for small and medium-sized companies, relatively weak in competitiveness, such as lack of information on overseas market and inferiority in overseas marketing capabilities. Specifically, the empirical analysis shows that companies have extensive experience in digital trade and online domestic sales in Korea and transaction experience through B2C online platforms account for a higher share of total sales or exports than companies with low digital readiness. Research Implications - First, continuous policy attention and efforts are needed to build a digital trade environment so that SMEs can naturally become accustomed to digital trade. Second, the government’s digital export support programs targeting SMEs should ultimately be centered on B2B transactions. Finally, intelligent digital export support programs are required by items suitable for digital trade through the integrated management of the transaction and transaction history of the export promotion agencies.