On the 29th, Korea Federation of Small and Medium Enterprises Chairman Kim Ki-moon said in his 2026 New Year's address that "we will make this year the 'first year of restoring the growth ladder for small and medium-sized businesses,'" adding, "we will concentrate our policy capacity so that small and medium-sized businesses and microbusiness owners can once again leap to the center of Korea's economy."
Regarding internal and external business conditions, Kim said, "last year, a tariff war sparked by the United States, the European Union's strengthened non-tariff barriers, and China's low-price offensive placed a heavy burden on exports and investment by small and medium-sized businesses," and noted, "on top of that, changes in the demographic structure brought a contraction in domestic demand and entrenched low growth."
Kim went on, "even so, Korea's exports topped $700 billion for the first time ever, surpassing Japan to rank as the world's No. 5 exporter," and said, "products of small and medium-sized businesses such as K-beauty, food, and household and kitchen goods were recognized for their competitiveness in the global market, and SME exports also achieved an all-time record."
On the policy direction for small and medium-sized businesses in 2026, Kim said, "among Korea's 8.3 million enterprises, about 95% are microbusiness owners, while small and medium-sized firms account for only 4.7%, creating a thumbtack-shaped structure," and added, "we will shift the government's SME policy from 'survival-centered' to 'growth-centered' and focus all the capabilities of the Korea Federation of Small and Medium Enterprises on restoring the growth ladder that leads from microbusiness owners to small businesses and from small to medium-sized businesses."
To that end, the Korea Federation of Small and Medium Enterprises plans to pursue six key tasks: ▲support for SME AI transition and utilization ▲creating a fair market environment ▲restoring the growth ladder for micro and small businesses ▲expanding SME entry into global markets ▲regulatory reform and labor structure innovation ▲revitalizing regional SMEs and regional economies.
Meanwhile, the Korea Federation of Small and Medium Enterprises chose jagangbulsik (自强不息), meaning "to discipline oneself and move forward without stopping," as the four-character idiom that forecasts next year's business environment for small and medium-sized businesses. A Korea Federation of Small and Medium Enterprises official said, "even amid difficult internal and external conditions, if we keep challenging ourselves with a jagangbulsik mindset, small and medium-sized businesses and microbusiness owners will be able to create opportunities for a new leap."