South Korea’s SME Ministry Proposes Record 18 Trillion-Won Budget for Growth and Safety Nets

South Korea’s Ministry of SMEs and Startups has proposed a record budget of 18.0724 trillion won for 2027, promising to strengthen both the path from startup to scale-up and the safety net for small businesses.

The proposed budget rises 9.4%, or 1.5491 trillion won, from this year. The ministry said it created room for priority programs by eliminating small-scale support schemes and shifting more loan assistance toward interest subsidies.

Research and development funding for small and venture companies would increase by 357.8 billion won, to 2.5537 trillion won. The ministry plans to identify 300 innovative companies in four growth areas: new security technologies, climate technology, pharmaceuticals and biotechnology, and Korean consumer goods. A physical-AI demonstration program for manufacturing would receive 172.8 billion won in new funding.

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The 2027 budget was designed to focus on support that allows SMEs, venture companies and small businesses to achieve real growth through bold spending restructuring.

Startup support would also expand. The Everyone’s Startup program would serve 20,000 people, up from 15,000, while average stage-based commercialization support would rise from 20 million won to 30 million won. A new 170 billion won regional startup package would assist companies based in startup cities and firms considering relocation. Contributions to the public-of-funds program, which helps seed venture investment, would increase to 1.3 trillion won from 820 billion won.

The budget places particular emphasis on helping companies move beyond their early stages. Funding for the Jump-Up program would nearly triple, to 164.2 billion won, and export vouchers would more than double, to 313.7 billion won. Programs for entrepreneurs making a second attempt would receive new funding, while policy financing for small businesses would total 5.4 trillion won through direct loans and interest subsidies.

Small businesses would also gain new health-care support worth 205 billion won and a 30 billion won youth safety insurance program. The ministry plans to invest 124 billion won in a cooperative delivery-app initiative intended to reduce platform fees and create a public delivery ecosystem for consumers, merchants and riders.

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The ministry will devote all its capabilities to building an irreplaceable South Korea where everyone grows through a growth ladder for SMEs and ventures and the spread of growth benefits.