South Korea Announces SME Support Plans for 2026

SEJONG, South Korea - The Ministry of SMEs and Startups said on Tuesday that it allocated KRW 14.1 trillion to consumer promotion measures in 2025 and announced expanded support programs for small businesses and technology startups.

The ministry reported third-quarter venture capital investment reached KRW 4 trillion, the highest level in four years, according to a business report released Tuesday.

Small and medium enterprise exports totaled $30.4 billion in the third quarter, a record for the period, the ministry said.

The government established a Startup One-Stop Support Center on Dec. 1, which received inquiries from 512 companies in its first 10 days of operation and resolved 94 percent of cases immediately, according to the ministry.

The ministry secured KRW 2.2 trillion in research and development funding for small and medium enterprises in the 2026 budget, the largest allocation on record, according to the ministry.

The ministry also established a Re-Challenge Support Headquarters on Dec. 11 to provide consulting and financing for failed entrepreneurs.

Win-win payment transactions between January and November totaled KRW 169 trillion, a record, the ministry stated.

The government enacted legislation in November establishing mechanisms to extend the duration of the Korea Fund of Funds and to calculate technology theft damages through court-appointed experts.

The ministry outlined plans to expand regional startup infrastructure, aiming to reach 10,000 AI and deep-technology startups by 2030.

The ministry set a goal to increase the regional share of innovative small and medium enterprises from 39 percent in 2025 to 50 percent by 2030.

The ministry said it plans to allocate KRW 1.6 trillion (US$1.08 billion) to the Korea Fund of Funds in 2026, an increase of 58 percent from KRW 1 trillion in 2025.

Regional growth funds totaling KRW 3.5 trillion (US$2.37 billion) will be established by 2030, with KRW 700 billion targeted for 2026, according to the report.

The ministry said it will provide KRW 579 billion (US$392 million) in business stability vouchers to 2.3 million small business owners with annual sales below KRW 104 million, offering KRW 250,000 per recipient for utility expenses.

The ministry said it will pursue a data-based integrated support platform that consolidates government and local government policy information for small and medium enterprises, with AI-powered program recommendations and single-login application systems.

(US$1 = KRW 1,477.00)