[2024 Budget] Ministry of SMEs and Startups Allocates 14.5 Trillion KRW for Next Year... Supporting Small Business Owners

Expansion of Loan Supply Scale to 3.8 Trillion Won
Dreaming of a Leap to a Global Startup Venture Powerhouse

The Ministry of SMEs and Startups has prepared a budget proposal of 14.5 trillion won for next year. The plan focuses on resolving management difficulties for small business owners and SMEs, as well as fostering ventures and startups.

On the 29th, the Ministry announced that it will submit the '2024 Budget Proposal' to the National Assembly, amounting to 14.5135 trillion won, an increase of 993 billion won (7.3%) compared to this year.

The key investment directions of the budget proposal are set as overcoming crises, nurturing entrepreneurial small business owners, advancing to a global startup venture powerhouse, promoting manufacturing innovation and export expansion for SMEs, and increasing funding.

Minister Lee Young of the Ministry of SMEs and Startups is giving a lecture on the topic "Discussing the 2023 Policies of the Ministry of SMEs and Startups" at the Korea Employers Federation Forum held at the Chosun Hotel in Jung-gu, Seoul, on June 29. Photo by Yoon Dong-ju doso7@

Overcoming Crises and Nurturing Entrepreneurial Small Business Owners

First, to resolve funding difficulties for small business owners and create a stable management environment, the loan supply scale will be expanded from the existing 3 trillion won to 3.8 trillion won. A new small business owner refinancing loan program worth 500 billion won will be established to convert high-interest loans into low-interest ones or to convert loans that are difficult to extend maturity in the private sector into policy funds.

The Hope Return Package, which helps small business owners and self-employed individuals with business closure, re-challenge, and re-employment, has been increased from 146.4 billion won to 151.3 billion won. The support scale for employment insurance premiums for the self-employed will be expanded to an all-time high of 40,000 people annually, allowing 15,000 more people to benefit compared to this year.

To nurture entrepreneurial small business owners with differentiated products and services, previously dispersed projects will be packaged and utilized. About 700 people will be supported through the New Business Startup Academy project (19.6 billion won), which provides startup education, and about 200 companies will be selected for the Strong Small Business Growth Support Project (23.9 billion won), which selects small business owners through an audition method and helps with commercialization funds and funding.

Additionally, through the Smart Store Technology Dissemination Project, about 6,000 small business sites will be assisted in equipping digital infrastructure such as kiosks, smart mirrors, and serving robots.

Advancing to a Global Startup Venture Powerhouse

To become a global startup venture powerhouse, 1.4452 trillion won will be invested next year. This is an increase of 122.3 billion won (9.2%) compared to this year.

A global startup hub called 'Space K' will be established to support startups' overseas expansion and the activities of foreign startups in Korea. Design will proceed next year, and a task force led by the private sector will be formed to prepare programs and other preliminary preparations.

The representative startup support program TIPS will utilize 130.4 billion won, an increase of 20.3 billion won (18.4%) from before. Since 2013, TIPS has provided research and development (R&D), commercialization, and overseas marketing information to promising startups selected and prioritized for investment by the private sector. Next year, support for startups that have attracted domestic investment will be increased, and a global TIPS track will be newly established. The support scale for global companies and startups participating in the 'Global Corporate Collaboration Program' will be expanded from 270 companies to 290 companies, and additional collaborative companies will be discovered.

To revitalize the venture investment market and provide relief for startup funding difficulties, the budget for the Korea Fund of Funds will be significantly increased. Next year, the Korea Fund of Funds will invest to raise about 1 trillion won in investment funds, including the Startup Korea Fund and global funds. The Ministry expects that domestic ventures and startups will be able to advance globally through global funds operated by overseas venture capital funded by the Korea Fund of Funds.

Minister Lee Young of the Ministry of SMEs and Startups is delivering a greeting at the announcement of support measures for SME exports and a meeting with companies held on January 26 at the Export-Import Bank in Yeouido, Seoul. Photo by Yoon Dong-joo doso7@

Manufacturing Innovation, Export Promotion, and Funding Expansion for SMEs

The budget for manufacturing innovation and export expansion for SMEs has been allocated at 7.9098 trillion won, an increase of 74.2 billion won (0.9%) compared to before. Support volumes will be increased to help small manufacturing companies adopt smart manufacturing technologies, and advanced smart factory support will be increased from 550 companies annually to about 800 companies. Considering the decrease in the working population and the increased demand for robots to prevent industrial accidents, manufacturing robots will be distributed to about 270 companies.

Since SMEs, ventures, and startups directly or indirectly account for more than 40% of exports, next year, services such as overseas marketing, legal support, and interpretation/translation will be supported in a voucher format for 3,300 companies.

The Korea SMEs and Startups Agency's loans, focusing on facility, working capital, and startup funds, have been reflected at 4.7 trillion won, an increase of 468.1 billion won compared to this year's main budget. A new loan program that provides production funds based on delivery orders will also be promoted.

Minister Lee Young said, "The budget was prepared with a focus on achieving the 'SMEs and Ventures 50+' policy goal announced last May," adding, "We will check the effectiveness of policies such as the delivery system to ensure that the budget prepared by the end of the year can be executed more effectively and efficiently, and based on this, we will seek improvement measures."

This content was produced with the assistance of AI translation services.