Korea’s startups agency to boost financial support for struggling SMEs

Kang Seok-jin, Chairman of the Korea SMEs and Startups Agency, announces the four key focus areas at his first anniversary press conference in Seoul on the 4th. [Courtesy of SMEs & Startups Agency]

South Korea’s SMEs & Startups Agency (KOSME) plans to expand the direct loan support for small and medium-sized enterprises by 270 billion won ($202 million), bringing the total to 4.7 trillion won for the second half of the year, its President Kang Seok-jin announced on Wednesday.

The measure comes as SMEs continue to face difficulties due to weak domestic demand and prolonged high-interest rates.

During a press conference marking his one-year anniversary as president, Kang highlighted the achievements of KOSME under his leadership and outlined the agency’s four key focus areas moving forward.

Kang emphasized that 100 billion won in emergency management funds have already been allocated to support SMEs impacted by the recent payment settlement failures of major online platforms, TMON and WeMakePrice.

He noted that 70 to 80 percent of these funds have already been distributed, saying, “We aim to offer swift and sufficient opportunities for SMEs to overcome challenges and regain stability, positioning them for future growth.”

Looking ahead, KOSME plans to inject 30 billion won next year to support innovative SMEs with high growth potential, particularly those focused on global expansion.

The agency will also work closely with the Ministry of SMEs and Startups to build overseas networks and foster the international growth of Korean small ventures.