During the second week of April (10th–13th), the policy financing landscape for small and medium-sized enterprises (SMEs) and startups was abuzz.
The core driver was the passage of the Ministry of SMEs and Startups' (hereinafter MSS) 2026 1st supplementary budget through the plenary session of the National Assembly, finalizing a total budget of KRW 1,690.3 billion.
Four pillars form the framework of this supplementary budget: responding to export corporate damage caused by the prolonged Middle East war, stabilizing the livelihoods of small merchants, creating a startup ecosystem for youth employment, and artificial intelligence (AI) transformation for regional manufacturing companies. Additionally, plans for a comprehensive overhaul of the evaluation system to restore trust in policy financing operations were made official on the same day, forecasting major changes spanning both funding beneficiary opportunities and operational methods.
① MSS 1st Supplementary Budget of KRW 1.69 Trillion Finalized… Detailed Breakdown by 4 Major Sectors
The Ministry of SMEs and Startups (Minister Han Seong-sook) announced that its 2026 1st supplementary budget was finalized at KRW 1,690.3 billion following the National Assembly plenary session on April 10.
This represents a total reduction of KRW 247.15 billion compared to the initial government proposal, where export support maintained its original plan while startup and some manufacturing transformation budgets were adjusted.
The finalized supplementary budget is composed of four sectors: KRW 462.2 billion for export SME support, KRW 495.2 billion for small merchant livelihood stabilization, KRW 671.9 billion for fostering the startup boom, and KRW 61.0 billion for AI transformation of regional small and medium manufacturing enterprises.