The Ministry of SMEs and Startups (Minister Han Sung-sook) announced its 2026 SME policy fund management plan on the 22nd. This year's policy funds total 4.4313 trillion won, with 4.0643 trillion won in loans and 367 billion won in secondary guarantees for loans from private financial institutions.
Policy funds are tailored to each company's growth stage, including startup, growth, and resurgence. Companies established less than seven years ago will receive KRW 1.6 trillion in innovation and startup commercialization funds, while growing companies will receive KRW 1.7 trillion in new market entry support funds and new growth infrastructure funds. Companies experiencing management difficulties will receive KRW 0.25 trillion in emergency management stabilization funds.
Key initiatives include strengthening support for non-metropolitan areas, innovative growth sectors, and K-beauty companies. More than 60% of total policy funds will be concentrated in non-metropolitan areas, and a KRW 140 billion AX Sprint Preferential Track will be established for innovative companies in AI, semiconductors, and other sectors, offering maximum loan limits, preferential interest rates, and expedited evaluations. K-beauty loans will be expanded from KRW 20 billion to KRW 40 billion, and the annual support limit will be increased from KRW 200 million to KRW 300 million.
The policy financing support system will be improved to be more demand-oriented. A "Policy Fund Navigation" system will be introduced, recommending suitable policy financing based on companies' input of business history, closure status, export performance, and intended use of funds. Customized non-financial support, including in-depth consulting for high-performance companies, will also be strengthened.
We will strengthen monitoring of insolvent companies through operational system improvements and introduce a "one-strike-out" system to prevent misuse of policy funds. Furthermore, we will provide up to five rounds of policy funding to ultra-low-income startups and companies in key support areas, while small businesses will be eligible for one additional round of funding.
Applications for SME policy funds will be accepted starting January 5th of next year through the SMEs and Startups Agency website. Companies in Seoul and other regions can apply on January 5th and 6th, while those in Gyeonggi and Incheon can apply on January 7th and 8th. Further details can be found on the Ministry of SMEs and Startups website or by contacting the dedicated policy fund call center.
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