PROJECT CONCEPT PAPER
FOR
KNOWLEDGE SHARING PROGRAM
- SYSTEM CONSULTING -
TABLE OF CONTENTS
I. Introduction 1
II. Key Issues 1
III. Project Overview 2
A. Impact & Outcome 2
B. Outputs 2
C. Activities & Methodologies 2
IV. Project Implementation Arrangements 4
A. Stakeholders 4
B. Work Division 5
C. Expected Schedule 6
D. Financing Plan 6
<Attachment 1> Basic Project Information 8
<Attachment 2> Project Design and Monitoring Framework 9
<Attachment 3> Terms of Reference for KSP Consultants 11
i
<Project concept paper for the SYSTEM Consulting project>
Support for promotion of technology based/innovative entrepreneurs through Technology Guarantee System in Thailand
Date: 4 June, 2015
I. Introduction
1. Acknowledging the importance of sharing knowledge and experience on knowledge-based socio-economic infrastructure or system for sustainable development of partner countries, the Ministry of Strategy and Finance (“MoSF”) of the Republic of Korea (“RoK”) launched the System Consulting as a part of the Knowledge Sharing Program (“KSP”) in 2013. The System Consulting aims to provide practical support for the implementation of policy alternatives by sharing highly competitive systems of the RoK to partner countries considering their current circumstances.
2. Based on a request proposal submitted by the Thai Credit Guarantee Corporation (TCG), the MoSF and the Government of Thailand (GoT) agreed to implement the KSP System Consulting project on promotion of technology based/innovative entrepreneurs through Technology Guarantee System. Under the supervision of the MoSF, the Export-Import bank of Korea (“Korea EXIM bank”), a Government Agency for the KSP, prepared the 2015 KSP System Consulting project to support the promotion of technology based/innovative entrepreneurs with technology and innovation in Thailand. The impact, outcome, outputs, activities, implementation arrangements, and financing plan are based on consultations with the TCG and GoT.
II. Key Issues
3. As the general economy rapidly grew in emerging country, the new trends of digital economy have been arising in those countries. As new economy based on digital computing technologies is creating new paradigm of business, many countries are supporting start-up businesses and technology based/innovative entrepreneurs with inventive technologies but lack of financial materials. In this connection, the Government of Thailand, one of the emerging countries, is also trying to effectively active in supporting technology based/innovative entrepreneurs through Credit Guarantee Schemes as there are new demands of having separate policies for supporting technology based/innovative entrepreneurs, but the government is facing limited capacity to access to sufficient funding for them. As a result, TCG under the Ministry of Finance of Thailand is actively looking for way to promote technology based/innovative entrepreneurs based on Technology Guarantee System but with different evaluation methodology compared to general Credit Rating System with financial statement assessment, or to promote them through non-guarantee system. Besides, TCG also has key partners such as National Science and Technology Development Agency and the Ministry of Science and Technology that promote Technology Start–Ups and Technology-based firms, which could help to support technology based/innovative entrepreneurs.
4. At this point, Korea has the impressively qualified Technology Guarantee system, such as Kibo Technology Rating System (KTRS) of Korea Technology Finance Corporation (KOTEC) which is very ideal for needs of the TCG. Unlike the usual Credit Guarantee Systems, KTRS has unique points which focused on capabilities of default risk management while looking only at future potential of technology business. In addition to that Korea’s accumulated experiences and know-hows could help Thailand in minimizing the trial and mistakes.
5. 26th ACSIC Conference[1] in 2013, when the time of first cooperation with TCG, KOTEC introduced KSP, and later GoT requested further deepen, sharpen, and broaden the perspectives through policy advice, in combination with conference & seminar, technical consultation and training on creating effective technology guarantee system and supporting mechanism that helps promotive innovation of technology based/innovative entrepreneurs.
6. In this regard, the MoSF and the TCG agreed to implement the KSP system consulting project on supporting technology based/innovative entrepreneurs through advanced Technology Guarantee System. Considering that Korea has great experiences regarding development of Technology Guarantee System, this would be a great opportunity for both countries to share the knowledge on development of policies and system for improving Technology Guarantee mechanism in Thailand.
III. Project Overview
A. Impact & Outcome
7. The Project aims to technology based/innovative entrepreneurs to support GDP growth and increase economic value of the country by supporting technology based/innovative entrepreneurs with effective Technology Guarantee System or non-guarantee system, and also technology evaluation and efficient network integration among related agencies from both government sector and private sector.
B. Output
8. The outputs of the project will be
(i) Analysis on current stage of Technology Guarantee System in Thailand with best practices and experience sharing of Korea in supporting technology based/innovative entrepreneurs
(ii) Comparative analysis and recommendation of model and supporting system for Thailand
(iii) Case study of Thailand and suitable model selection
(iv) Verifying the selected Models
(v) Project result summary and model finalization
C. Activities & Methodologies
The following activities are expected to be conducted:
9. (Activity 1) Analysis on current stage of Technology Guarantee System in Thailand with best practices and experience sharing of Korea in supporting Technology based/ innovative entrepreneurs.
Prior to conducting the model analysis, it is necessary that the experts from Korea share valuable knowledge and experience in supporting technology based/innovative entrepreneurs to related Thai agencies. The experience sharing will cover technology guarantee system specifically KTRS, Korea’s policy and roadmap for supporting technology based/innovative entrepreneurs, and also other non-guarantee systems that prove to be successful in promoting these entrepreneurs such as venture capital or any other non-financial supports. This will help create better understanding among the involved Thai agencies about the Korea’s best practice in supporting technology based/innovative entrepreneurs and ensure their appropriate contributions to the project.
Also, the study on current stage of Technology Guarantee System as well as relevant policies and schemes for supporting technology based/innovative entrepreneurs in Thailand will be carried out. For the purpose of gaining valuable local insights and needs, constant interaction among related Thai agencies will take place during the whole project with all findings to be drafted in a report and presented to the final report.
10. (Activity 2) Comparative analysis and recommendation of model and supporting system for Thailand
After information sharing, the analysis of current technology guarantee system as well as relevant policies and schemes for supporting technology based/innovative entrepreneurs of Thailand will be conducted and the comparison with the successful model from Korea will be made.
Based on the result from comparative analysis, the recommendation of the suitable model and supporting system for Thailand will be provided with consultations in a practical manner regarding functional analysis, the design of viable technology evaluation system, the specifications of necessary hardware, software, network and other equipments. KSP consultants will also provide policy advice and consultation which are necessary for helping to establish and make use of the system to support technology based/innovative entrepreneurs.
11. (Activity 3) Case study of Thailand and suitable model selection
After the model has been recommended, it is crucial that the model be applied to the actual cases to provide insight of realistic practice. In this stage, over 10 case studies of technology based/innovative entrepreneurs with different business sizes, development stages, and types of technology will be presented. Additional advice from Korea regarding other characteristics of technology based/innovative entrepreneurs not mentioned above could be provided. After that, the Korea expert will select the model suitable for each case and explain the criteria for making decision, which include the method for technology evaluation.
In this stage, the outcome will be to obtain the appropriate model to effectively support technology based/innovative entrepreneurs with different characteristics in Thailand. Also, the focus will be on encouraging financial institutions to lend to technology based/innovative entrepreneurs with viable projects and good prospects of success, but having inadequate collaterals or lacking suitable financial transaction record.
12. (Activity 4) Verifying the selected Models.
Once the suitable models for different cases have been determined, the models will be tested and run. After that, the result of the test will be analyzed and any adjustments to the model could be made to ensure practical outcome and successful implementation.
Upon model verification, KSP consultants may host seminars or workshops in cooperation with TCG and invite the best qualified experts in the concerned field to share their useful opinions and knowledge, or provide additional recommendations for the selected case studies. The workshop agenda will be finalized in coordination with TCG.
13. (Activity 5) Project result summary and model finalization
After model verification, the project result will be summarized and the most suitable model for supporting technology based/innovative entrepreneurs in Thailand will be finalized with the viable technology evaluation and effective supporting mechanism.
Derived from the outcomes of the System Consulting project, the Korea EXIMbank will draw up the agenda for the Dissemination Workshop in Thailand, and disseminate the project outputs and Korea’s best practice on support technology based/innovative entrepreneurs through Technical Guarantee Systems or Non-Guarantee System for national and local stakeholders, experts of concerned sectors, and participating parties of the System Consulting project. The exact location will be determined in the near future.
IV. Project Implementation Arrangements
A. Stakeholders
14. Korea EXIMbank will be in charge of the management of the KSP System Consulting Proejct. Korea EXIMbank will employ KSP consultants to source the relevant KSP presenters to perform the knowledge sharing of the Republic of Korea’s experiences. The selection and the engagement of consultants will be carried out in line with the agreement on the Terms of Reference for consultants among Korea EXIMbank and the TCG. The following staff will lead the organization and the management of the activities and their respective funds:
Korea EXIMbank:
- Ms. Sae-won Hwang (Project Team Leader, KSP Team):
- Ms. Jin Ju Hong (Project Officer, KSP Team):
Thai Credit Guarantee Corporation(TCG):
- Mr. Vallobh Tejapaibul (Project Supervisor, President):
- Mr. Wichet Warakul (Project Coordinator, Senior Executive Vice President, Business Group) :
B. Work Division
15. The organization of activities and specific responsibilities are as follows:
Activities(Milestones) / TCG / Korea EXIMbank (KSP Consultants) / Funding Sources
Activity 1
Analysis on current stage of Technology Guarantee System in Thailand with best practices and experience sharing of Korea in supporting technology based/innovative entrepreneurs / Provide relevant data and information necessary
Review and comment on the work done by the KSP. / In-depth research on overview of current country-level of Technology Guarantee Systems.
Best practice and knowledge sharing from Korea’s expertise / Funded by KSP
In-kind
Contribution
will be
provided by
GoT
Activity 2
Comparative analysis and recommendation of model and supporting system for Thailand / Review and comment on the work done by the KSP with regards to what aspects of Korea’s practices should be emphasized for the case of Thailand. / Conduct comparative analysis and recommend suitable model / Funded by KSP
In-kind
Contribution
will be
provided by
GoT
Activity 3
Case study of Thailand and suitable model selection / Propose case studies
for model testing
Review and comment on the work done by the KSP. / Design and draft
system concept and
specification that is
suitable with Thai
cases / Funded by KSP
In-kind
Contribution
will be
provided by
GoT
Activity 4
Verifying the selected Models / Review and comment on the work done by the KSP.
Identify the participants for the workshop
Provide assistance in terms of logistics as requested. / Run and test the selected models and made necessary adjustments
Invite all relevant guests and organize the workshop.
Identify relevant experts and institutions in Korea. / Funded by KSP
In-kind
Contribution
will be
provided by
GoT
Activity 5
Project result summary and model finalization / Review and comment on the work done by the KSP.
Provide assistance in terms of logistics as requested / Summarize the project result and finalize the model
Design and deliver the seminar. / Funded by KSP
In-kind
Contribution
will be
provided by
GoT
C. Expected Schedule
16. This System Consulting project will be implemented from July 2015 to November 2015. The proposed implementation schedule and milestones are as follows:
Activities (Milestones) / Expected DateConsultation on the project contents with the TCG / June 2015
Confirmation of Project concept paper and Terms of Reference, and Selection of KSP consultants / July 2015
Inception workshop (inception report submission by the KSP consultants) / July 2015
Activity 1
- Analysis on current stage of Technology Guarantee System in Thailand with best practices and experience sharing of Korea in supporting technology based/innovative entrepreneurs / August 2015
Activity 2
- Comparative analysis and recommendation of model and supporting system for Thailand / September 2015
Activity 3
- Case study of Thailand and suitable model selection / October 2015
Activity 4
- Verifying the selected Models / October 2015
Activity 5
- Project result summary and model finalization. / November 2015
Draft final report submission / November 2015
Final report and project completion report submission by the KSP consultants / November 2015
D. Financing Plan
17. This KSP System Consulting Program will be funded by the Korea EXIMbank. This System Consulting Project is estimated to cost KRW 210,000,000 (USD 200,000) by KSP team and TCG will provide counterpart support in the forms of counterpart staff, provision of office space and other in-kind contributions. .
Expenditure / KRW 210,000,000 (USD 200,000)KSP Contribution / KRW 210,000,000 (USD 200,000)
Personnel / KRW 73,500,000 (USD 70,000)
Travel, Meeting & Workshops / KRW 115,500,000 (USD 110,000)
Miscellaneous / KRW 21,000,000 (USD 20,000)
Total / KRW 210,000,000 (USD 200,000)
<Attachment 1>: Basic Project Information
<Attachment 2>: Project Design and Monitoring Framework
Attachment 3: ToR for KSP consultant
<Attachment 1>
Basic Project Information
Project Title: / Support for promotion of technology based/innovative entrepreneurs through Technology Guarantee System in ThailandProject Type: / System Consulting.
Project Duration: / July 2015 – November 2015 (6 months)
Project Budget: / KRW 210,000,000 (USD 200,000)
Stakeholders: / Korea EXIMbank, Thai Credit Guarantee Corporation (TCG)
Person in Charge: / Korea EXIMbank: Sae-won Hwang (Project Team Leader),
Jin Ju Hong(Project Officer), KSP Team
TCG: Vallobh Tejapaibul, (President)
Wichet Warakul, (Senior Executive Vice President)
Project Activities / Activity 1:
- Analysis on current stage of Technology Guarantee System in Thailand with best practices and experience sharing of Korea in supporting technology based/innovative entrepreneurs
Activity 2:
- Comparative analysis and recommendation of model and supporting system for Thailand
Activity 3:
- Case study of Thailand and suitable model selection
Activity 4:
- Verifying the selected Models.
Activity 5:
- Project result summary and model finalization.
<Attachment 2
Project Design and Monitoring Framework