The Ministry of SMEs and Startups and the Korea SMEs and Startups Agency (KOSME) said on the 3rd that, under the "2026 loan plan for small and midsize businesses," they will begin accepting policy funds using a growth-sharing method.
A growth-sharing loan is a method in which KOSME acquires convertible bonds (CB), redeemable convertible preferred shares (RCPS), and convertible preferred shares (CPS) of corporations with strong initial public offering (IPO) potential. The support scale is 60 billion won in loans, with a maximum of 2 billion won per corporation.
To address imbalances in venture investment, the program will support corporations that are not known in the private investment market, corporations located outside the greater Seoul area, and startups. Applications will be accepted starting on the 4th.
Since Jan., KOSME has also been accepting applications, on an annual scale of 50 billion won, for "investment-conditional loans," a bridge-loan format that supports funding gaps between initial and follow-on investments. It provides low-interest loans mainly to corporations with strong technology but without financial performance yet.
Eligible recipients for investment-conditional loan support are corporations that have received at least 100 million won in venture investment from an investment institution within the past 24 months as of the application date. When KOSME provides a loan, it receives warrants equivalent to 5% of the total loan amount, and the supported corporation repays early by using investment funds when it attracts follow-on investment, repaying up to 20% of the loan principal.
Kang Seok-jin, chair of KOSME, said, "Growth-sharing loans and investment-conditional loans are policy finance focused on corporations' future value and growth potential," adding, "We will strengthen stage-by-stage funding so startups can cross the 'death valley' and connect to private investment."