The government will establish a "K-Beauty Global Fund" to promote exports of Korean Wave strategy items, including K-beauty, food, and content. To create a regional commercial district that attracts people and capital, it will designate two new "Glocal (global + local) commercial district projects" where tourists can stay and enjoy the diversity of the region, providing support of up to 15.5 billion won over five years.
On the 8th, the Ministry of Small and Medium Enterprises and Startups noted that it would respond proactively to environmental changes during the "2025 Ministry of Small and Medium Enterprises and Startups Key Issues Solution Meeting."
The Ministry of Small and Medium Enterprises and Startups will support the entry of the gaming industry into the Middle East utilizing the K-Beauty Global Fund, as well as a joint fund with Korea and Saudi Arabia amounting to $160 million, thereby pioneering new markets for Korean Wave-based content.
To activate the export of technology services with low fixed costs and high added value, it will also fully operate the "Global Smart Tech Bridge" platform, which supports the establishment of export vouchers and matching transactions with overseas technology demand companies.
To foster a sustainable local economy, the government will expand the Glocal commercial district project and establish three systems: private sector-led commercial district planners, commercial district development funds, and commercial district investment associations. The number of commercial district planners will start at 250 this year and increase to 1,000 by 2027.
Together with the local governments, small business owners, and regional companies, a commercial district development fund will be created, along with the introduction of a commercial district investment association managed by planners. Investment obligations will be placed on the commercial district investment association to promote development in the respective commercial districts.
Every year, the government will designate 2 to 3 century-old markets with local history and culture as landmarks and introduce the latest joint logistics services to traditional markets, fostering a coexistence of history and digital innovation.
By promoting the "Legend 50+" 2.0 initiative with a support scale of 430 billion won, the government will comprehensively support locally tailored projects planned by local governments through funding, exports, and research and development (R&D). Additionally, a dedicated R&D project for innovative small and medium enterprises outside the capital area, worth 1 trillion won, will be newly established to assist regional SMEs.
The government, along with the Fund of Funds, local governments, regional banks, and local hub companies, plans to create regional venture funds totaling 1 trillion won over three years until 2027. It aims to establish at least one venture fund within three years across 14 cities and provinces outside the capital area, offering incentives such as prioritizing loss coverage and transfer of excess profits to private investors.
To prevent the surplus bankruptcies of small and medium enterprises due to the aging of Chief Executive Officers (CEOs) and the absence of family successors, the government will establish a proposed "Corporate Succession Act" based on third-party mergers and acquisitions (M&A). This law will include the designation of corporate succession support centers and linkage with private M&A brokerage institutions, alongside subsidies supporting the entire M&A succession process.
Minister Oh Youngju emphasized that "the uncertainty in external factors will increase with the launch of the Trump administration, and the unstable domestic and foreign environment will pose an even greater challenge to small and medium enterprises and small business owners, who are the targets of the ministry’s policies," adding that "the Ministry will serve as a strong support that small business owners and SMEs can rely on and trust."