On March 20, 2026, South Korea’s Ministry of SMEs and Startups, Ministry of Employment and Labor, and Fair Trade Commission jointly announced new policy directions for small and medium-sized enterprises (SMEs). The event, held at the Blue House State Guest House, gathered over 170 participants including government officials, SME representatives, and experts. The main objective was to introduce the government’s SME policies to the public and gather feedback from stakeholders. The policies aim to strengthen SME competitiveness through innovation, regional development, and the creation of a fair market environment.
The reforms directly impact SME owners, employees, and regional talent pools, as well as large corporations engaged with SMEs. Key measures include doubling the scale of TIPS-style R&D support, launching a Korean-style STTR program, and improving public procurement to favor innovative SMEs. Regional initiatives focus on nurturing advanced talent in AI and semiconductors, establishing 20 AI joint training centers, and supporting long-term employment through incentives such as master’s degree programs. The Fair Trade Commission will enhance SME bargaining power, introduce new franchise and subcontractor rights, and strengthen technology protection.
Implementation of these policies began in early 2024, with several new programs and legal reforms scheduled for the first half of the year. The government will introduce the Regional Employment Activation Act and expand support for non-metropolitan youth employment and safety infrastructure. The Fair Trade Commission will increase investigation staff to reduce case processing times by 40% and raise penalties for repeated unfair practices. Financial incentives and differentiated support will be applied to encourage SME growth, regional preference, and large-SME collaboration.
Frequently asked questions include: How will SMEs benefit from these reforms? SMEs will gain greater access to R&D funding, export support, and legal protections against unfair practices. What support is available for regional talent? Regional SMEs can access new training centers, AI skill development, and incentives for long-term employment. How will unfair practices be addressed? The government will strengthen monitoring, increase penalties, and provide legal and financial support for affected SMEs.
South Korea’s comprehensive SME policy reforms demonstrate a strong commitment to fostering innovation, regional development, and fair market practices. By expanding R&D support, nurturing regional talent, and enhancing legal protections, the government is addressing key challenges faced by SMEs. The inclusion of stakeholder feedback and phased implementation signal a practical approach. These measures are likely to strengthen the SME ecosystem and promote balanced economic growth across the country.