[War Supplementary Budget] Ministry of SMEs Allocates 1.9 Trillion Won for Export-Affected SMEs and Startup Promotion

Export Vouchers Allocated 100 Billion Won,
Emergency Management Stabilization Funds Set at 250 Billion Won

The Ministry of SMEs and Startups has allocated an additional supplementary budget of approximately 1.9 trillion won to support export-oriented small and medium-sized enterprises (SMEs) affected by the Middle East war and other related challenges.

The business agreement ceremony for proactive and comprehensive support of small business owners and vulnerable low-income groups facing management crises was held on the 27th at the Bankers' Hall conference room in Jung-gu, Seoul. Han Sung-sook, Minister of the Ministry of SMEs and Startups, attending the event, is delivering a greeting. 2026.03.27 Photo by Dongju Yoon

On March 31, the Ministry announced that this supplementary budget proposal was approved at the Cabinet meeting and will be submitted to the National Assembly. The budget will be primarily focused on four key areas: minimizing damage to SMEs, stabilizing the management of small business owners, promoting youth employment and entrepreneurship, and facilitating the transition to artificial intelligence (AI) for regional SME manufacturers.

To address crises such as transportation disruptions and rising logistics costs caused by the Middle East war, the Ministry has allocated 100 billion won for export voucher support. An additional 250 billion won will be supplied as emergency management stabilization funds for companies facing difficulties due to high exchange rates and surges in raw material prices. The number of export vouchers will be doubled from 7,000 to 14,000, and joint logistics centers will be established in the Middle East. The Ministry also plans to provide a total of 7.1 trillion won in policy-based export financing to help ease liquidity constraints.

In addition, the Ministry will provide an extra 12.2 billion won to help companies affected by the Middle East war ease export regulatory burdens and strengthen online export support. Furthermore, to enable diversification of export destinations beyond the Middle East, the budget for new market entry support funds will be increased by 100 billion won.

The Ministry has also expanded the special management stabilization fund for small business owners with limited financial capacity by 320 billion won. It will contribute 100 billion won each to the Korea Technology Finance Corporation and the Korea Credit Guarantee Fund to strengthen guarantee support. The budget for the Hope Return Package, which assists small businesses facing closure and supports new business challenges, has also been increased by 24.6 billion won. Additionally, a new project will be launched to enhance the added value of products from local small business owners.

To help young people secure jobs through entrepreneurship, the Ministry has allocated a budget to foster a startup boom. The 'Startup for All' project, a talent development platform that provides coaching and supports commercialization through phased competitions, will receive 155 billion won. The budget for expanding deep-tech, startup-centered universities linked to startup cities has been set at 24 billion won. Furthermore, 60.3 billion won has been earmarked to support local entrepreneurs utilizing regional resources, including commercialization funds. To create venture funds that focus on early-stage startups, business re-challenges, and local companies, a 170 billion won investment will be made through the Korea Venture Investment Fund (the so-called 'Mother Fund').

Support for the AI transformation of regional SMEs to strengthen manufacturing competitiveness will also be expanded. An additional 75 billion won will be invested to establish leading models for manufacturing AX (AI transformation) and further disseminate smart factories through collaboration between large corporations and SMEs. The Ministry also plans to launch new initiatives to nurture AI specialists for practical application in manufacturing sites.

Minister Han Sungsook stated, "Through this supplementary budget, we plan to actively support export companies and small business owners struggling due to the Middle East war, as well as revitalize startups and regional manufacturing companies that create youth jobs and restore business vitality."

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