Ministry of SMEs and Startups to Recruit Companies for 'Core Carbon Reduction Technology Development Project for Key Export Items'

The Ministry of SMEs and Startups will support the development and demonstration of carbon reduction technologies for small and medium-sized enterprises (SMEs) exporting steel and aluminum in response to global carbon regulations.

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On April 27, the Ministry of SMEs and Startups and the Korea Technology and Information Promotion Agency for SMEs announced that they will be recruiting SMEs to participate in the "2026 Core Carbon Reduction Technology Development (R&D) Project for Key Export Items of Small and Medium Enterprises" from May 13 to May 27.

The "Core Carbon Reduction Technology Development (R&D) Project for Key Export Items of Small and Medium Enterprises" aims to support the development and demonstration of carbon reduction technologies for the two key export items-steel and aluminum-of export-oriented SMEs, in response to the increasing visibility of global carbon regulations such as the Carbon Border Adjustment Mechanism (CBAM).

Starting this year, the European Union's CBAM has been fully implemented, and major countries are also either strengthening or gradually introducing carbon reduction regulations. The CBAM is a system that imposes a cost on the amount of carbon emitted during the production process of carbon-intensive products exported to the European Union. SMEs now face the necessity of not only boosting product competitiveness but also responding to carbon reduction requirements to maintain their export competitiveness.

Overview of the 2026 Small and Medium Enterprises Export Core Item Carbon Reduction Technology Development Project. Ministry of SMEs and Startups

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To alleviate the burden of carbon regulations on SMEs and enhance their export competitiveness, the Ministry of SMEs and Startups will comprehensively support the development and acquisition of competitive carbon reduction technologies, as well as on-site demonstration for export SMEs.

Eligible applicants include: ▲ SMEs that develop and supply carbon reduction technologies ▲ export SMEs (at least two companies) that can apply the developed technologies on-site ▲ consortia including universities and research institutes as joint research organizations (if necessary). Selection will be made through a designated competitive application process.

The Ministry plans to invite proposals for a total of 26 designated tasks (RFPs) in three core technology areas with high carbon reduction demand in the steel and aluminum industries: ▲ combustion fuel/raw material substitution ▲ unit process improvement/power reduction ▲ reuse and commercialization of raw materials and components.

Following written and in-person evaluations, the final 18 projects will be selected, with each project receiving support for R&D, consulting, and demonstrations for three to five years, up to a maximum of 5.5 billion won per project.

Companies wishing to participate in the project can apply online via the Integrated Inter-Ministerial Research Support System website from May 13 to May 27. Detailed announcements and application procedures are also available on the Ministry of SMEs and Startups and Korea Technology and Information Promotion Agency for SMEs websites.

Kim Daehee, Director of SME Strategic Planning at the Ministry of SMEs and Startups, stated, "With the full implementation of CBAM and the strengthening of global carbon regulations starting this year, it has become even more important for export SMEs to respond. We hope that this project will help SMEs secure core carbon reduction technologies and thereby enhance their export competitiveness."

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