As digital transformation accelerates globally, ensuring that small and medium-sized enterprises (SMEs) are not left behind has become a policy priority. The OECD-RCSBE-KDIS-KEA Joint Workshop, held on June 12, 2025, served as a high-impact platform to explore how SMEs can thrive in a data-driven economy through innovation, collaboration, and strategic policy support. 

The event began with welcome coffee and registration, followed by opening remarks from Dr. Joon-Kyung Kim, Dean of the KDI School. He highlighted the importance of inclusive digital transformation and the school’s commitment to supporting policy-relevant research.

Lucia Cusmano, Head of the SMEs and Entrepreneurs Division at the OECD, delivered the introductory speech. She emphasized the need for trusted data, research-based policymaking, and strong multi-stakeholder cooperation to close the digital gap among SMEs and empower innovation.

Moderated by Minjin Lee (RCSBE), the first session focused on how artificial intelligence is reshaping the SME landscape. Jian Bang (OECD) presented on “AI and SMEs: Unlocking Potential or Deepening the Divide?”, outlining the rapid growth in AI adoption among Korean SMEs—from 5% in 2023 to 28% in 2024—but warned of widening gaps in capacity and access.

Junghee Kee , Deputy Director at Korea’s Ministry of SMEs and Startups, followed with insights on Korea’s national Smart Manufacturing Innovation Policy, which has supported over 35,000 factories with measurable gains in productivity and cost-efficiency. Discussants Bogang Jun (RCSBE) and Changkeun Lee (KDI School) highlighted the need for ecosystem-based support and regional balance in AI policy.

Moderated by Lucia Cusmano (OECD), the second session explored the use of data analytics in business strategy. Irene Choi (Kakao) shared how Kakao is contributing to the digital transformation of Korea’s traditional marketplaces by offering tools for MSMEs to improve online presence and customer engagement. Minjin Lee (RCSBE) presented “We Are What We Buy,” an analysis of urban consumption patterns using delivery data. Discussants Jisung Yoon (KDI School) and Chungeun Yoon (KDI School) emphasized the importance of integrating consumer behavior data into policy frameworks.

The third session, moderated by Bogang Jun (RCSBE), addressed structural changes in urban industry. Jose Montegu and Marco Bianchini (OECD) presented on the digital transformation of retail sectors across OECD countries. Dr. Jinkook Lee (KDI) offered empirical insights into how Korea’s micro-manufacturers are adapting to these changes, underscoring the significance of tailored policy intervention. Discussants Weejun Park (RCSBE) and Manseok Jo (KRIHS) examined implications for regional development and smart infrastructure planning.

The workshop concluded at 6:00 PM with closing remarks that reiterated the need for a collaborative ecosystem to ensure SMEs are not left behind in the digital age. Participants agreed that such interdisciplinary dialogue is crucial for crafting inclusive and forward-looking policies.

As one of the rare forums where local policy intersects with global expertise, this joint workshop not only amplified Korea’s policy leadership on SME innovation, but also positioned the KDI School as a regional hub for digital economy discourse. The event offered tangible strategies for bridging the digital divide—making it a model initiative worth replicating in other countries aiming to empower their SMEs in the Fourth Industrial Revolution.