The digital transformation of domestic small and medium-sized enterprises (SMEs) appears to be inadequate. It was analyzed that focusing on digital transformation of small and medium-sized enterprises is necessary to secure sustainable competitiveness.

The Korea Federation of SMEs (Chairman Kim Ki-moon) announced on the 1st the results of a survey titled "Digital Maturity of SMEs," which examined 15 key competencies for digital transformation to understand the current state of SMEs' global digital competitiveness as digital transformation becomes the new normal worldwide due to COVID-19.

The survey results showed that domestic small and medium-sized enterprises' digital maturity was 41.9 points out of 100, indicating that they are inadequately prepared for digital transformation.

By industry, manufacturing scored 44.6 points and service industry scored 37.5 points, showing differences in digital maturity by industry.

In particular, the digital maturity of export-oriented SMEs was found to be higher at 46.3 points compared to 40.1 points for domestic SMEs, indicating that strengthening the capacity to respond to digital transformation is necessary to enhance the global competitiveness of SMEs.

The industries with the highest digital maturity included computer programs and system management (61 points) and electrical equipment and general devices (56 points), while the industries with the lowest digital maturity included warehouse and transportation (25.8 points) and video and audio-related industries (29 points).

The digital maturity of small and medium-sized enterprises (SMEs) also showed significant differences depending on corporate sales.

Manufacturing companies with sales of 10 billion won or more received 50.9 points, while those with sales of less than 3 billion won received 38.3 points. In the service industry, those with sales of 10 billion won or more received 44.9 points, while those with sales of less than 3 billion won received 32.9 points.

Additionally, the digital maturity of companies with export performance exceeding 3 billion won was 53 points, indicating that the greater the digital transformation response capacity, the higher the global competitiveness.

SMEs are requesting government support measures to strengthen their digital transformation capabilities, including consulting (49.5%) and online platform support (3%).The responses were in the following order: digital education (7.5%), AI voucher support (14.4%), and AI-related education (33.2%).

In particular, export companies were high in need of consulting support (51.5%) and online platform support (50.5%), and 43.8% of companies with exports of less than 1 billion won responded that they needed educational support.

As a result of investigating 15 core competency elements on a 5-point scale to measure digital maturity, introduction of remote work (1.42 points), innovation of production and inventory processes such as tracking systems (1.57 points), attempts to change corporate culture (1.63 points), development and utilization of new business models (1.98 points), digitalization strategy (1.99 points), securing digital experts, and digital education and training (2.04 points) scored lower than the average (2.09 points), and were identified as elements that should be prioritized when establishing government policies.

“COVID-19 has accelerated the digital transformation, making non-face-to-face interactions a daily occurrence,” said Chu Moon-gap, head of the Economic Policy Division at the Korea Federation of SMEs. “Because the coming digital transformation is inevitable, it is urgent to build the foundation for SMEs through active support in consulting and education to ensure their competitiveness in the global market.”