The Ministry of SMEs and Startups announced that it has approved a partial amendment to the Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act, allowing companies previously excluded from startups to be recognized as startups if they resolve the exclusion reasons. The revised decree will take effect on January 1, 2026.
Current legislation defines ‘startup’ as the establishment of a new SME and specifies exclusion reasons to prevent duplicate benefits from startup support programs. For example, if an individual entrepreneur continues an existing business while starting another, it is not recognized as a startup.
The amendment improves the recognition of startups if the exclusion reasons are resolved within seven years from the business commencement date. The revised decree will also apply to SMEs that started their business before the enforcement date but have not yet passed seven years.
Joo Kyung-won, Director of Startup Policy, stated that the amendment is expected to provide a stable growth foundation for companies previously excluded from startup support programs. He added that the ministry will continue to strengthen the institutional foundation to revitalize the startup ecosystem and expand support targets.