The Ministry of SMEs and Startups (MSS) announced the approval of its 2025 budget plan and fund operation, which has been confirmed at KRW 15.248 trillion. This marks an increase of KRW 299.1 billion compared to the 2024 main budget of KRW 14.9497 trillion. The budget was officially approved during the National Assembly plenary session on December 10, 2024.

The 2025 budget focuses on supporting 7.66 million small business owners and self-employed individuals as they navigate challenges and make fresh starts. It also aims to drive the global expansion and innovative growth of 8.04 million SMEs and startups.

The five key directions for the MSS budget in 2025 are as follows:

1. Support for Small Business Owners and Self-Employed Individuals

MSS will provide extensive support to help small business owners and self-employed individuals overcome operational challenges caused by high prices and interest rates. Temporary subsidies for delivery and shipping costs will be offered, and financial support will be enhanced through expanded policy fund loans for small business owners with low credit capabilities. The Ministry will also extend repayment periods through commercial bank partnerships (conversion guarantees).

The Hope Return Package, which offers one-stop support for business closure, re-employment, and re-establishment, will be expanded to help small business owners make a solid new start. In addition, MSS will partner with private platform companies to improve the digital capabilities of small business owners. Efforts to revitalize traditional markets and local commercial districts will also include an increased issuance of Onnuri gift certificates and enhanced collaboration with the private sector and local governments to inject new consumer enthusiasm into these areas.

2. Intensive Nurturing of Deep-Tech Startups

MSS is focusing on the AI and fabless sectors as next-generation growth engines. It also aims to foster global unicorn companies within the deep-tech sector, enhancing connectivity between large corporations and deep-tech startups through advanced open innovation.

The budget for the Fund of Funds, which drives private capital investment into the innovation ecosystem, will be increased. Additionally, R&D support for SMEs will be expanded, focusing on national strategic technologies and global cooperation, to fuel the growth of innovative startups.

3. Export Support for SMEs and Startups

MSS will prioritize the development of new export growth engines by boosting support for tech service exports, which are emerging as a key sector for the future. The Ministry will also expand scale-up financing for exporting SMEs.

A key initiative in 2025 is the creation of a Global Startup Hub, where deep-tech startups will be located, and global tech companies and talent will converge. MSS will continue to expand its efforts under the Startup Korea initiative, broadening collaboration with international firms to help Korean startups go global.

4. Locally Driven Innovation and Digital Manufacturing

To foster locally driven economic growth, MSS will focus on regional specialized R&D support and increase autonomous voucher support for local SMEs. The Ministry will also boost efforts to develop smart factories to enhance digital manufacturing. As part of these efforts, three additional regional manufacturing AI centers will be launched to help manufacturing SMEs increase productivity through AI.

5. Sustainable and Shared Growth for SMEs

MSS will introduce the Jump Up initiative to assist promising SMEs in scaling up to become mid-sized companies. This initiative aims to foster lasting public-private partnerships and promote shared growth between SMEs and large enterprises.

Additionally, the Ministry will increase support for the shared growth network loan, a policy fund designed to strengthen supply chain linkages.

The Ministry of SMEs and Startups will continue to focus its policy efforts on ensuring the successful implementation of the 2025 business plan, enhancing the vitality and dynamism of the national economy and the livelihoods of the people.