The Ministry of SMEs and Startups (MSS) will supply more than 4.4 trillion won in policy funds for small and midsize corporations next year, moving to bolster financing for SMEs. It plans to allocate policy funds to non-capital regions and innovation growth sectors such as AI and semiconductors, and to prefer corporations undergoing artificial intelligence transformation (AX), strengthening tailored support by growth stage and sector to accelerate innovation-driven growth and management stability.
According to the Ministry of SMEs and Startups (MSS) on the 22nd, the total supply of policy funds next year will be 4.4313 trillion won, of which the loan will be 4.0643 trillion won and the interest subsidy on loans from private financial institutions will be 367 billion won.
Policy funds will be operated as tailored support by corporate growth stage, such as startup, growth, and re-jump phases. It will supply 1.6 trillion won in innovation startup commercialization funds to startup corporations with less than seven years in business, and provide 1.7 trillion won, including new market entry support funds and new growth foundation funds, to corporations in the growth stage.
The Ministry of SMEs and Startups (MSS) will sharply expand support for non-capital regions and innovation growth sectors. Of the roughly 4 trillion won in total policy funds, it plans to supply more than 2.44 trillion won, or over 60%, to non-capital regions to back balanced regional development and the growth of local SMEs. It also plans to expand the share of policy funds for non-capital regions going forward.
Support will also increase for corporations in innovation growth sectors such as artificial intelligence (AI) and semiconductors. It will establish a 140 billion won "AX Sprint Preferential Track" for corporations promoting AX conversion or possessing and using AI-related technologies. It will raise the maximum outstanding loan balance limit from 6 billion won to 10 billion won, and support the growth of AI corporations through preferential interest rates and expedited evaluations.
It will double the supply of the "K-Beauty Loan," a policy fund dedicated to the K-beauty industry, from 20 billion won to 40 billion won, and raise the annual support limit from 200 million won to 300 million won.
Support will continue for corporations harmed by changes in the trade environment. To assist corporations affected by protectionism such as U.S. item tariffs, it will incorporate the functions of the temporarily operated "Emergency Trade Risk Response Fund" into the "Emergency Management Stabilization Fund" and continue support next year. The overseas subsidiary support fund for corporations seeking to expand abroad will be increased to 70 billion won, and the loan limit for working capital to turn domestic corporations into exporters will be raised to a maximum of 1 billion won.
In addition, to ease the burden of applying for policy funds, it will introduce a "policy fund navigation" service and strengthen soundness management of policy funds by introducing an early warning system for distressed corporations and a "one-strike-out" rule for misuse. To prevent undue third-party intervention in policy funds, it plans to prepare legislative measures by the first half of next year centered on "formalizing consulting" and "sanctioning illegal acts" through coordination with experts and related agencies.
SME policy funds can be applied for on the Korea SMEs and Startups Agency (KOSME) website starting Jan. 5 next year. Corporations located in Seoul and other regions can apply on Jan. 5–6, and those in Gyeonggi and Incheon can apply on Jan. 7–8.