President Kim Ki-moon of the Korea Federation of Small and Medium Enterprises said on the 29th in the 2026 New Year's address that he would make this year "the first year of restoring the growth ladder for small and medium-sized enterprises," adding that he would focus policy capabilities so that small and medium-sized enterprises and small merchants can once again leap to the center of Korea's economy.
Regarding internal and external business conditions, Kim said that last year small and medium-sized enterprises faced heavy burdens on exports and investment due to a tariff war triggered by the United States, strengthened non-tariff barriers by the European Union (EU), and China's low-price offensive, adding that the difficulties were compounded by a contraction in domestic demand and entrenched low growth due to demographic changes.
Kim added that despite this, Korea's exports surpassed $700 billion for the first time ever and overtook Japan to rank as the world's No. 5 exporter, and that small and medium-sized enterprise products such as K-beauty, food, and household and kitchen goods were recognized for their competitiveness in global markets, leading SME exports to also post all-time record results.
On policy directions for small and medium-sized enterprises in 2026, Kim said that among Korea's 8.3 million enterprises, about 95% are small merchants, with small enterprises and medium-sized enterprises accounting for only 4.7%, leaving them in a thumbtack-shaped structure, and added that the Korea Federation of Small and Medium Enterprises would focus all its capabilities on shifting the government's SME policy from "survival-centered" to "growth-centered" to restore the growth ladder that moves from small merchants to small enterprises and from small enterprises to medium-sized enterprises.
To that end, the Korea Federation of Small and Medium Enterprises plans to push six key tasks: ▲ supporting AI transition and utilization by SMEs ▲ creating a fair market environment ▲ restoring the growth ladder for small merchants and small enterprises ▲ 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 the four-character idiom jagangbulsik (自强不息), meaning "to train oneself and press on without stopping," as the phrase forecasting next year's business environment for SMEs. An official at the Korea Federation of Small and Medium Enterprises said that if they continue to take on challenges with the spirit of "self-strengthening without rest" even amid difficult internal and external conditions, small and medium-sized enterprises and small merchants will be able to create opportunities for a new leap forward.