Ministry of SMEs and Startups to Invest KRW 280 Billion Over Two Years in Regional SMEs, Accelerating R&D Support

306 New Projects Selected
Participation Threshold Lowered... Number of Applications Up 2.7 Times

The Ministry of SMEs and Startups will launch large-scale research and development (R&D) support to strengthen the technological competitiveness of small and medium-sized enterprises (SMEs) outside the Seoul metropolitan area.

Signboard of the Ministry of SMEs and Startups. Ministry of SMEs and Startups

On May 6, the Ministry announced that it has selected 306 new projects under the “Regional Innovation Leading Enterprise Development (R&D)” initiative and will invest a total of KRW 280 billion over the next two years. The goal is to reinforce the foundation for regional economic growth by simultaneously promoting technological innovation and the establishment of collaborative ecosystems centered around key local industries.

This initiative is divided into two categories: “Core Industry Ecosystem Building” through industry-academia-research collaboration, with 157 projects selected, and “Regional Enterprise Capacity Enhancement,” which supports individual companies, with 149 projects selected. Major research institutions—including Pohang University of Science and Technology and Gwangju Institute of Science and Technology—will participate to support technology development linked to local industries.

This year, participation requirements have also been eased. Previously, only companies with annual sales of KRW 10 billion or more could apply, but now any company with an R&D investment ratio of 5% or higher is eligible, regardless of sales size. The intent is to expand support to companies that may have smaller revenues but possess strong technological capabilities and growth potential.

Thanks to these policy improvements, the number of submitted projects increased to 738, about 2.7 times higher than the previous year. The evaluation process was also made fairer through the introduction of technology sector-specific assessments and standardized scoring. The average R&D intensity among the final selected companies was recorded at 11.7%, with the bio sector reaching as high as 407.9%.

For example, the development of a high-pressure hydrogen storage module combining titanium layering and carbon composite materials is recognized as a core next-generation mobility technology that ensures both light weight and safety. Other high-value-added technologies—such as a large language model (LLM)-based integrated logistics control platform, on-site edge artificial intelligence inspection modules, and digital PCR-based diagnostic technology that counts genes individually—are expected to accelerate innovation in regional economies by integrating data and AI across manufacturing, bio, and mobility sectors.

The Ministry has also implemented institutional improvements to reduce the burden on companies. The traditional in-person evaluation process has been moved online, reducing time and costs. In addition, the Ministry plans to support the hiring of technical personnel and the execution of R&D by linking with the “SME Innovation Voucher” program.

A Ministry official stated, “Through this project, we aim to strengthen the technological competitiveness of local SMEs and build a sustainable foundation for regional economic growth, centered around an innovation ecosystem focused on core industries.”

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