The Ministry of SMEs and Startups and the Small Enterprise and Market Service (SEMAS) will foster local corporations that create new business models by combining the region's unique resources with innovative ideas, as well as entrepreneur-type small business owners.
SEMAS said on the 28th that it is carrying out the "local corporations cultivation program" and the "strong small business growth support program," which support small business owners who create business value by using regional characteristics and resources.
The local corporations cultivation program is an expanded and reorganized version of the previous "local creator cultivation program." SEMAS will select 291 local corporations with high growth potential and support them through 2026. Of the selected corporations, 90% were chosen from outside the greater Seoul area and 10% from the greater Seoul area.
Local corporations refers to small business owners who create new business value by combining the region's natural and cultural characteristics with the founder's ideas. They are "regional-value entrepreneurs" who contribute to revitalizing the local economy by grafting innovative ideas onto the region's unique characteristics and resources.
Local corporations are classified into seven types by business model: ▲ regional value ▲ local food ▲ region-based manufacturing ▲ region-specialized tourism ▲ base brand ▲ digital cultural experience ▲ nature-friendly activities.
SEMAS provides commercialization funds along with education and consulting, mentoring, and networking to help selected corporations develop and advance new products and form local communities. In particular, commercialization funds needed for upgrading business models and developing products and services are provided on a differential basis up to 50 million won per corporation, considering each corporation's business plan and growth potential.
The strong small business growth support program discovers new business models through open collaboration among creators, startups, and small business owners in different industries, and focuses support so that small business owners can grow into entrepreneur-type small business owners.
Eligible applicants are business operators who, as of the application date, are operating normally among small business owners under Article 2 of the Small Business Framework Act. This year, a total of 243 corporations will be selected for support.
The strong small business growth support program consists of 143 local-type corporations and 100 innovation-type corporations. In particular, the local type will be selected with a ratio of 10% from the greater Seoul area and 90% from outside the greater Seoul area.
The local type targets corporations that are achieving results based on ideas that utilize the region's unique resources and culture. The innovation type targets corporations with differentiated content that reflects lifestyles such as personal preferences and values.
Selected corporations will receive, in stages, growth support funds, team building, business model (BM) advancement, and type-specific specialized programs. Growth support funds needed for commercialization, such as expanding and refining product lineups and branding and design, will be provided on a differential basis up to 100 million won.
SEMAS will hold a final audition in Sep. and make the final selection of 20 local corporations and 60 strong small business owners for follow-up support.
The Ministry of SMEs and Startups (MSS) and SEMAS plan to use this support to discover business models that combine the region's unique resources with small business owners' creative ideas and to continuously foster entrepreneur-type small business owners who grow based on their regions.