The Ministry of SMEs and Startups (MSS) said on the 29th that it will implement the "2026 small business support programs and loan consolidated notice" ahead of schedule. To back small businesses' management recovery and sustainable growth, it will push policies across seven areas.
The 2026 budget related to small businesses at the Ministry of SMEs and Startups (MSS) is set at a record 5.4 trillion won. Of that, 1.341 trillion won is earmarked for programs supporting prospective founders and small businesses. That is up 524 billion won (64%) from a year earlier. The support areas are nurturing entrepreneur-type small businesses, supporting small business growth, specialized support for small manufacturers, revitalizing local commercial districts, strengthening digital capabilities, easing management burdens, and restart support. In addition, policy funds total 3.362 trillion won to ease funding difficulties for general small businesses, improve access for financially vulnerable groups, and promote growth for promising small businesses.
◇ Safety net, stronger second chances… nurturing and discovering innovative small businesses
The Ministry of SMEs and Startups (MSS) will continue in 2026 to operate a program that provides management stabilization vouchers usable for utility bills such as electricity and gas and for the four major insurance premiums to ease small businesses' management burdens. A total budget of 579 billion won is allocated to support about 2.3 million firms, and small businesses with annual sales under 104 million won will receive up to 250,000 won. The Hope Return Package budget for small businesses in crisis is set at 305.6 billion won in 2026. The store demolition subsidy has been raised from up to 4 million won to 6 million won. The linkage with the Employment Ministry's National Employment Support System has been expanded to 3,000 people. For the re-start commercialization support, the self-pay ratio has been eased from 100% to 50%.
The 2026 small business policy funds focus on strengthening safety nets for regions and vulnerable groups and on discovering and nurturing innovative small businesses by type. More than 60% of the policy funds will be directed to non-capital regions and areas facing population extinction. Small businesses in those regions will also get a 0.2 percentage point interest rate cut. Financial support for mid- to low-credit small businesses will be strengthened. To ease accumulated financial burdens, the scope of refinancing loans will be expanded, and the refinancing loan limit for small businesses that used household loans to raise business funds will be raised from the current 10 million won to 50 million won.
Support for exporting small businesses will be strengthened through innovation growth promotion funds. To promote small business exports, a new export category will be created in the baton-pass funds—funds that allow linked access to SME policy funds—providing a 0.4 percentage point interest rate cut when a small business grows into a small enterprise, with a limit of up to 20 billion won. To nurture digital and online small businesses, the inclusive growth promotion funds will also differentiate the loan limit by growth stage so that more policy funds are available as they scale.
◇ Stimulating consumption and commercial districts… supporting the use of AI
To bolster sales at traditional markets and alleyway-style shopping districts, Onnuri gift certificates will be issued in the amount of 5.5 trillion won. The share of digital certificates will increase while paper certificates will be reduced in stages. The ministry will also pursue the "glocal commercial districts" initiative, which promotes inflows of domestic and international visitors by linking with local tourism and culture; the "local hub commercial districts," which focuses on developing local content by connecting with local specialized industries and manufacturing; and the "promising alley commercial districts" program, which supports organization, collaboration, and capacity building for alleyway commercial districts.
A new support program will also be introduced to help innovative small businesses use AI and to nurture them into corporations that lead the global export market. By adopting differentiated product development and services using AI, it will support small businesses in reducing expense and improving work efficiency. At the same time, it will support product development, packaging, and design so that products recognized domestically can be turned into export brands.
Minister Han Seong-sook of the Ministry of SMEs and Startups (MSS) said, "We are focusing on laying the groundwork for small businesses to respond on their own to changing management environments and to grow," adding, "The MSS will link policy tools, including AI and digital transformation, to on-the-ground needs to deliver tangible changes and results that small businesses can feel."