"Fostering Local Entrepreneurs and Introducing AI"...Major Overhaul in Small Business Policies (Comprehensive)

2026 Small Business Policy Briefing
Accelerating Sales Growth for Small Businesses
Discovering Local Entrepreneurs Through Nationwide Auditions
Strengthening AI Education Both Online and Offline
Selecting Around 50 Distinctive Markets Each Year
Transforming "First-Come, First-Served" Policy Fund Support

The government will assist small business owners in boosting their sales by discovering competitive local entrepreneurs and introducing artificial intelligence (AI) throughout various regions. The support system for small business owners facing crisis will also be revamped, with plans to provide policy funds on a priority basis—such as through policy priority assessments—for "distressed small business owners" whose financial burdens have reached their limit.

On the 16th, Lee Byungkwon, the Second Deputy Minister of the Ministry of SMEs and Startups, is speaking at the 2026 Small Business Policy Briefing held at the Small Business Digital Education Center in Mapo-gu, Seoul. Ministry of SMEs and Startups

On March 16, the Ministry of SMEs and Startups held the "2026 Small Business Policy Briefing" at the Small Business Digital Education Center in Mapo-gu, Seoul, and announced these initiatives. According to the Bank of Korea, the outstanding balance of loans to self-employed people increased 33.3% over five years, from 804 trillion won at the end of 2020 to 1,072 trillion won in the third quarter of last year. Although domestic demand has gradually entered a recovery phase after a prolonged slump, the business environment for small business owners remains challenging due to financial pressures.

In response, the Ministry of SMEs and Startups has set "Increasing sales for small businesses and commercial districts" as its top priority for this year and will implement detailed policies to achieve this goal. First, an audition will be held to foster promising local entrepreneurs, and 1,000 companies will be selected. The number of local startup towns—where young people in the region can freely network and receive startup information and education—will be expanded from 8 last year to 10 this year. In addition, up to 100 companies will receive support of up to 100 million won each for expanding overseas sales channels, enabling outstanding local businesses to grow into global brands.

AI education for small business owners will also be strengthened. According to a survey by the Korea Federation of SMEs, small business owners are highly aware of AI, but only a few utilize it in practice due to difficulties in adopting the technology (69%) and lack of actual learning opportunities (47%). To address this, the Ministry of SMEs and Startups will enhance AI education both online and offline, aiming to identify around 500 best practices for digital utilization by industry. The ministry will also help 16,000 small business establishments actively adopt smart technologies such as barrier-free kiosks and serving robots.

The government will also focus on fostering traditional markets that reflect the unique characteristics of each region. Every year, about 50 distinctive markets will be selected and developed into core stores that attract both domestic and international visitors. Furthermore, the Companion Festival scheduled for April will be promoted as the "Festival for Everyone" by linking it with various private sector events organized by local small business organizations, traditional markets, and neighborhood shopping districts.

On the 16th, Lee Byungkwon, the 2nd Vice Minister of the Ministry of SMEs and Startups, is speaking at the 2026 Small Business Policy Briefing held at the Small Business Digital Education Center in Mapo-gu, Seoul. Ministry of SMEs and Startups

The ministry also announced plans to strengthen support for vulnerable small business owners, with the goal of "supporting recovery and the ability to try again." The existing support system for small business owners, which focused mainly on sales, will be restructured to reflect income and assets. The system of "first-come, first-served" policy fund support will be improved by implementing policy priority assessments, so that small business owners in urgent need receive assistance first. For those who lack information and are unable to apply for necessary funds, an AI- and data-based "Small Business Policy Fund Navigator" service will be launched.

Care support will also be provided, such as maternity and parenting support for sole female proprietors. Employment insurance contributions for self-employed individuals will be further subsidized so that small business owners can receive unemployment benefits after closing their businesses. In addition, tax burdens will be eased on surrender refunds when canceling the Yellow Umbrella Mutual Aid program due to business deterioration.

The system for delivering small business policies will also undergo a major transformation. A "Small Business Dashboard" will be created by establishing a system for sharing public and private data, so that current small business statistics more accurately reflect reality. Based on these advanced data, customized policies by region and age group will be provided to each small business owner registered with Small Business 24.

Lee Byungkwon, Second Deputy Minister, said, "Whereas the previous small business support system was supply-driven and top-down, we will now strengthen customized support by industry and region by utilizing high-quality data in cooperation with the private sector. We will transform policies into demand-oriented, customized measures that meet small business owners' needs."

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