S. Korea allocates $2.4B for startup programs in 2026

Sejong, South Korea - The Ministry of SMEs and Startups said Friday it allocated KRW 3.46 trillion (US$2.39 billion) to startup support programs in 2026.

The allocation represents an increase of KRW 170.5 billion, or 5.2 percent, from the KRW 3.29 trillion (US$2.28 billion) allocated in 2025.

The ministry said 111 institutions will operate 508 programs. The institutions comprise 15 central government ministries and 96 local governments, consisting of 17 metropolitan and provincial authorities and 79 municipal authorities. In 2025, 101 institutions operated 429 programs.

The Financial Services Commission and the Korea Forest Service participated for the first time. 

The Financial Services Commission allocated funding to four loan guarantee programs. The Korea Forest Service allocated KRW 600 million (US$415,000) to support 16 entrepreneurs in the forestry sector.

Loans and guarantees totaled KRW 1.42 trillion (US$982 million) across 17 programs, representing 41.1 percent of total funding. Research and development totaled KRW 864.8 billion (US$598 million), or 25 percent, across 11 programs. Commercialization support totaled KRW 815.1 billion (US$564 million), or 23.5 percent of total support. 

The three categories comprised 89.6 percent of total funding. Event and networking programs totaled KRW 40.1 billion (US$27.7 million), or 1.2 percent, across 49 programs. Mentoring, consulting, and education programs totaled KRW 36.2 billion (US$25 million), or 1.0 percent, across 57 programs.

Central government ministries allocated KRW 3.27 trillion (US$2.26 billion). The Ministry of SMEs and Startups allocated KRW 3.07 trillion (US$2.12 billion), or 93.9 percent of central government funding. The Ministry of Science and ICT allocated KRW 84.6 billion (US$58.5 million), or 2.6 percent of the total. The Ministry of Culture, Sports and Tourism allocated KRW 40 billion (US$27.7 million), or 1.2 percent. The Ministry of Agriculture, Food and Rural Affairs allocated KRW 31.7 billion (US$21.9 million), or 1.0 percent. The Ministry of Environment allocated KRW 22.4 billion (US$15.5 million), or 0.7 percent.

Local governments allocated KRW 190.5 billion (US$131.7 million) across 420 programs. Seoul allocated KRW 39 billion (US$27 million). South Gyeongsang Province allocated KRW 19.7 billion (US$13.6 million). Gyeonggi Province allocated KRW 19.2 billion (US$13.3 million). North Gyeongsang Province allocated KRW 13.6 billion (US$9.4 million). North Jeolla Province allocated KRW 12.5 billion (US$8.6 million). Daejeon allocated KRW 12.3 billion (US$8.5 million).

Seoul operates four startup hubs with KRW 11.5 billion (US$8 million) in funding for office space and investment networking. Incheon allocated KRW 4.8 billion (US$3.3 million) to investor-driven technology development programs. North Jeolla Province allocated KRW 2 billion (US$1.4 million) to agriculture and food sector programs. Daejeon allocated KRW 600 million (US$415,000) to operate a restart campus.

Research and development funding increased by KRW 235.6 billion to KRW 864.8 billion (US$598 million). The Ministry of SMEs and Startups allocated KRW 786.4 billion (US$544 million) to startup growth technology development, an increase of KRW 190.4 billion (US$131.7 million). The program provides up to KRW 1.5 billion (US$1 million) over three years to companies with up to 7 years of operations. The ministry said approximately 1,668 companies will receive funding.

The Ministry of Science and ICT allocated KRW 32.6 billion (US$22.5 million) to 247 laboratories under a public technology market linkage program. The ministry allocated KRW 14.8 billion (US$10.2 million) to 153 laboratories under a laboratory-specialized startup university program. The ministry allocated KRW 7.5 billion (US$5.2 million) to 27 projects under a new program for strategic technology sectors, including semiconductors, displays, and secondary batteries.

Total funding for strategic technology sectors and related programs increased by KRW 39.6 billion to KRW 70.8 billion (US$49 million).

Commercialization support increased by KRW 48.5 billion to KRW 815.1 billion (US$564 million). The Ministry of SMEs and Startups increased funding for stage-based commercialization programs by KRW 24 billion to KRW 177.8 billion (US$123 million). The programs provide commercialization funding and training in artificial intelligence. The ministry allocated KRW 145.6 billion (US$100.7 million) to a separate program to expand the emerging industry market.

The Ministry of Culture, Sports and Tourism allocated KRW 3 billion (US$2.1 million) to a new tourism sector program. The program will support approximately 30 companies with demonstration costs and investment services.

Youth-focused programs received KRW 257.5 billion (US$178 million), an increase of KRW 80.1 billion (US$55.4 million). The Ministry of SMEs and Startups allocated KRW 102.5 billion (US$70.9 million) to a youth startup academy. The ministry allocated KRW 88.3 billion (US$61.1 million) to university-based startup programs. North Gyeongsang Province allocated KRW 2.3 billion (US$1.6 million) to preliminary startup programs. South Chungcheong Province allocated KRW 1 billion (US$692,000) to youth startup programs.

The ministry revised program management guidelines. Changes include expanded eligible business expenses, installment payment options for outsourcing costs, and coverage of intellectual property maintenance fees for patents filed before program participation. Coverage for technology infringement litigation insurance was added.

The ministry extended the participation restrictions to five years from three for entities that obtain funding through false means. The ministry said it will implement monitoring of government-funded equipment after program completion.

The ministry has published annual announcements for its startup support program since 2016.

(US$1 = KRW 1,446)