South Korea Boosts SME Support with KRW15.2T Budget for 2025

Sejong, South Korea—The Ministry of SMEs and Startups (MSS) secured a budget of KRW15.2 trillion (US$10.6 billion) for the fiscal year 2025, marking a KRW299.1 billion (US$208.3 million) increase from the previous year's budget of KRW14.9 trillion (US$10.4 billion).

The ministry announced that the budget will support 7.66 million small business owners and self-employed individuals, 8.04 million small and medium-sized enterprises (SMEs), and startups.

The government has outlined five key investment areas, focusing on preventing crises from deteriorating domestic and international macroeconomic conditions.

The budget aims to establish a comprehensive safety net for SMEs and startup ecosystems while creating a stable environment for business growth and market revitalization.

The plan includes temporary support for delivery and courier fees to help small business owners struggling with high inflation and interest rates.

The ministry will expand its "Hope Return Package" program, providing one-stop support from business closure to re-employment and restart.

The budget allocates new funding for deep tech startups in the artificial intelligence and fabless semiconductor sectors. The ministry will increase funding for its parent fund to attract private capital into the innovation ecosystem.

The ministry plans to construct a global startup hub in 2025 to house deep tech startups and attract global tech companies and talent.

The budget includes support for regional manufacturing innovation, with plans to add three regional manufacturing AI centers next year.

A new "Jump-up" program will be introduced to support promising SMEs aspiring to become mid-sized enterprises.