Extra Budget Confirmed, Now It Is 'Time for Execution'
The Ministry of SMEs and Startups (MSS) announced that the first supplementary budget for 2026 has been finalized at a total of KRW 1.6903 trillion following its passage at the plenary session of the National Assembly on April 10. This supplementary budget was prepared to address growing external economic uncertainties and a rapidly changing industrial structure, focusing on minimizing damage to export SMEs, AI transformation for regional small and medium-sized manufacturers, and creating a startup ecosystem for youth job creation.
Although the finalized amount is KRW 247.1 billion lower than the original budget bill of KRW 1.9374 billion submitted by the MSS, the export support budget was maintained as originally proposed, while startup and certain manufacturing transition budgets were partially adjusted. During the National Assembly review process, discussions were also held regarding the necessity of supporting small merchants and expanding the Onnuri gift certificates, and the MSS announced plans to consult with fiscal authorities on expansion measures utilizing the resources of the Small Enterprise and Market Service Fund.
MSS Minister Han Sung-sook stated, "We will swiftly execute the supplementary budget to support the management stabilization of export companies and small merchants struggling due to the Middle East war, and to expand youth jobs through the innovative growth of startups and regional companies."
Following the budget finalization, the policy field is moving rapidly. The first phase of supplementary budget execution has already begun, including the opening of the Donghaeng Festival (April 11), the Vice Minister's on-site inspection of participating companies in the Donghaeng Festival (April 15), and the issuance of a revised notice for the 'Everyone's Startup Project'. This report provides a detailed breakdown of the four major funding support structures and current execution trends of this supplementary budget in a policy briefing format.
Structure of the Four Major Supplementary Budget Support Areas
This supplementary budget is composed of programs to intensively support four major areas: KRW 462.2 billion to minimize Middle East war damages for export SMEs, KRW 495.2 billion for the livelihood stabilization of small merchants and others, KRW 671.9 billion to create a startup boom for youth employment support, and KRW 610 billion for the AI transformation of regional small and medium-sized manufacturers.
Among the four areas, the startup boom creation sector accounts for the largest share by amount, reaching approximately 40% of the entire supplementary budget. Small merchant livelihood stabilization follows at 29%, export SME support at 27%, and regional manufacturing AI transformation at 4%.
In the case of export SME support (KRW 462.2 billion), key detailed projects were arranged including KRW 250 billion in emergency management stabilization funds, KRW 100 billion in export vouchers, and KRW 100 billion in new market entry support funds. Small merchant livelihood stabilization (KRW 495.2 billion) centers on KRW 320 billion in special management stabilization funds, backed by KRW 60 billion in contributions to the Korea Technology Finance Corporation, KRW 50 billion in contributions to the Korea Credit Guarantee Fund, KRW 24.6 billion for the Hope Return Package, and KRW 40 billion for small merchant lifestyle and culture innovation support.
Startup boom creation (KRW 671.9 billion) consists of KRW 155 billion for Everyone's Startup, KRW 150 billion for new startup commercialization funds, KRW 68.4 billion for public-private cooperative open innovation, KRW 60 billion for Korea Fund of Funds contributions, and KRW 24 billion for startup-centered universities. Regional manufacturing AI transformation (KRW 610 billion) is entirely allocated to supporting the AI and digital transformation of regional small and medium-sized manufacturing companies.
We examine the specific execution directions for each sector and utilization strategies by enterprise item.
1. Startup Funds — KRW 671.9 Billion, Centered on 'Everyone's Startup'
The sector with the largest scale in this supplementary budget is startup cultivation. The project put forward by the MSS as the core of the startup budget is the 'Everyone's Startup Project'.
This project aims to provide opportunities for any citizen with creative ideas to take on challenges. Startup activity funds, accountable mentoring, and basic education are provided to 1,000 selected individuals.
Round 1 entrants are selected according to the operational organization TO calculated based on 10% for the capital area and 90% for non-capital areas, and the audition process is divided into 8 regions nationwide: the capital area (Seoul, Gyeonggi, Incheon), the central area (Daejeon, Sejong, Chungnam, Chungbuk), the Honam area (Gwangju, Jeonnam), the Daegyeong area (Daegu, Gyeongbuk), the Dongnam area (Busan, Ulsan, Gyeongnam), Gangwon, Jeonbuk, and Jeju.
To date, the Everyone's Startup project has seen an initial boom, attracting 10,000 applicants within 12 days of launch, and 'CNT Tech' was selected as the operating organization for the Seoul region. This explosive initial response is evaluated as the result of startup aspirations suppressed within the private startup ecosystem meeting policy funds.
According to the revised notice, ideas received by midnight on Thursday, April 23, 2026, will be included for rapid selection, and selection results are scheduled to be announced by the end of April. This schedule has been brought forward from the original plan, a measure in line with the tone of early budget execution.