SBA and LG Electronics Forge Alliance to Expand Global Reach for Seoul SMEs

The Seoul Business Agency (SBA), represented by CEO Kim Hyun-woo, announced on the 10th that it has signed a memorandum of understanding (MOU) with LG Electronics aimed at expanding the overseas market reach of small and medium-sized enterprises (SMEs) based in Seoul. This collaboration seeks to fortify the global competitiveness of these businesses, particularly those in the K-beauty and lifestyle sectors, by leveraging LG Electronics' extensive customer base in the overseas appliance subscription market.

This MOU integrates LG's customer engagement capabilities with SBA's expertise in identifying and supporting quality SMEs, effectively creating a model for mutual growth in global distribution. By enhancing the visibility of Seoul's K-beauty and lifestyle brands to international consumers, the partnership aims to stimulate direct market access, which is vital for revenue augmentation.

As part of the agreement, both organizations plan to jointly discover superior local brands, implement promotional strategies such as discount vouchers for overseas subscription customers, and operate global promotions based on SME products. The collaboration includes initiatives for collective marketing and publicity aimed at breaking into new international markets.

Before a widespread rollout, pilot operations were initiated targeting Singapore and Malaysia in the first half of the current year. Services were launched in Singapore in May and in Malaysia in June, allowing LG's existing appliance subscription customers to access branded products and discounts from ten participating Seoul-based beauty companies through the LG ThinQ app and a dedicated webpage.

Following the MOU, SBA and LG Electronics are expanding their cooperative efforts to Thailand, currently recruiting participants for the "SBA x LG Electronics K-Beauty and Lifestyle Market Link Project" aimed at the Thai market. This initiative targets approximately ten SMEs in the beauty and lifestyle sectors that are already selling through Thailand's online platforms such as Shopee and Lazada.

Selected companies will have opportunities to promote their brands on LG Electronics' official Thai website and within the exclusive channels of the LG ThinQ app for appliance subscription customers. Outstanding performance in voucher usage and sales may lead to additional promotional opportunities in Singapore and Malaysia, as well as participation in a beauty box initiative.

Kim Sung-min, Head of the Beauty Industry Division at the SBA, emphasized the significance of the partnership, stating that it presents new avenues for Seoul's quality SMEs to directly engage with global consumers. He added that based on the pilot program's outcomes, SBA aims to gradually expand its support across participating countries and enhance Seoul enterprises' overseas exports and revenue streams.

In addition, the SBA is actively pursuing various initiatives to strengthen the global competitiveness of Seoul's SMEs, such as facilitating market access and managing the B the B global platform for beauty and cultural experiences.