South Korea is expanding a policy approach that links the global infrastructure of large corporations with the export ambitions of smaller companies. The Ministry of SMEs and Startups (MSS) has launched the 2026 Large–Small Business Joint Overseas Expansion Support Program, allocating KRW 16.9 billion to help SMEs enter international markets through corporate partnerships.

The initiative signals a structural effort to convert corporate global networks into a practical export pathway for smaller technology and product companies.

MSS Launches 2026 Joint Overseas Expansion Support Program

On March 8, the Ministry of SMEs and Startups (MSS) announced that it will recruit small and medium-sized enterprises to participate in the 2026 Large–Small Business Joint Overseas Expansion Support Program.

The program is designed to support SMEs that possess technological capability but lack overseas infrastructure. It achieves this by leveraging the global networks and operational infrastructure of large corporations and other industry-leading companies.

MSS confirmed that 25 projects have already been selected as the first round of supported initiatives after a call for lead companies conducted with the Korea Foundation for Cooperation of Large & Small Business, Rural Affairs.

Recruitment is now open for SMEs that will participate in these projects.

The total budget for 2026 amounts to KRW 16.9 billion, with around 50 projects expected to receive support during the year. A second round of project recruitment is scheduled for May.

Government support typically covers up to 60 percent of the total project cost, with a maximum of KRW 200 million available per participating SME.

New Collaboration Models Introduced in 2026

This year’s program introduces several structural changes.

A new multi-corporate collaboration model will allow two or more lead companies such as distribution firms, digital platforms, or broadcasting companies to form a consortium with SMEs. These corporations will cooperate at different stages based on their operational strengths.

Previously, initiatives such as K-content promotion or distribution support operated as separate projects. The new approach aims to combine content production and distribution capabilities within a single collaboration structure.

MSS also expanded support for mid- to long-term projects, increasing the funding cap per SME from KRW 50 million to up to KRW 200 million.

In addition, the program now includes a “P-turn” model, which supports the relocation of overseas production bases to a third country. Long-term projects can receive up to KRW 2 billion in total support over a three-year period.

The ministry also plans to expand sector-focused initiatives supporting overseas expansion in areas such as K-beauty and artificial intelligence (AI).

Examples cited in the program include CJ Olive Young’s “K-Super Rookie with Young” beauty initiative and MegazoneCloud’s AI solution overseas expansion project.

SMEs interested in participating can review recruitment announcements posted by lead companies through the “Sangsaeng Nuri” platform, operated by the Cooperation Foundation, starting March 9.

Korea’s Strategy to Reduce SME Export Barriers

The program reflects a long-standing structural challenge in Korea’s industrial landscape.

Large conglomerates possess global distribution networks, local subsidiaries, and overseas procurement relationships. Many SMEs, even those with competitive technologies, struggle to access those international channels independently.

By connecting SMEs with corporate partners that already operate internationally, the government aims to lower the operational barriers that often block early-stage global expansion.

The initiative therefore positions corporate infrastructure as a form of export platform for smaller firms.

Programs of this kind are typically coordinated by public institutions such as the Korea Foundation for Cooperation of Large & Small Business, Rural Affairs, which acts as an intermediary between lead corporations and participating SMEs.

A Core Collaboration Model

Lee Soon-bae, Director General for Global Growth Policy at the Ministry of SMEs and Startups, described the initiative as a core collaboration model.

The Director said,

“The Joint Overseas Expansion Support Program has developed into a representative cooperation initiative that promotes global market entry by combining the capabilities of large corporations with the innovation of SMEs.
We will continue expanding cooperation with leading companies so that SMEs can sustain stable export performance.”

What This Means for Korea’s Startup and SME Ecosystem

The policy highlights an evolving feature of Korea’s startup support system: corporate infrastructure increasingly functions as a market entry channel for smaller firms.

Large corporations in sectors such as retail, content distribution, and digital platforms maintain extensive global supply chains and commercial networks. When those assets are opened to SME partners, startups can gain access to overseas buyers, marketing channels, and operational infrastructure that would otherwise require years to build.

The structure also reflects Korea’s broader industrial policy approach.

Rather than relying only on financial subsidies or export promotion agencies, the government is integrating corporate capabilities into SME internationalization programs. This approach connects private-sector networks with public policy funding.

Sector focus within the program also reflects Korea’s export priorities. Industries such as K-beauty and AI solutions are increasingly viewed as internationally scalable segments of the Korean technology and consumer economy.

For global investors and founders observing the Asia-Pacific startup ecosystem, the policy offers a signal about how Korea attempts to translate domestic innovation into international market access.

Large companies often act as operational bridges between local startups and overseas buyers. When those relationships are formalized through government-backed programs, collaboration can become more predictable.

At the same time, the practical impact will depend on execution.

Programs built around corporate collaboration often begin with marketing support or pilot initiatives. The long-term success of this model depends on whether those collaborations translate into sustained export contracts, distribution agreements, or long-term partnerships.

Corporate Infrastructure as a Policy Tool for SME Globalization

South Korea’s export economy has historically been shaped by large conglomerates with extensive international operations. The Joint Overseas Expansion Support Program suggests a policy effort to extend that global infrastructure to smaller companies.

If implemented effectively, the model could help SMEs bypass early logistical barriers that typically limit global expansion.

The next stage will be measurable outcomes.

Policy announcements create the framework. The real test lies in whether the participating SMEs secure durable export channels and repeat commercial relationships through these partnerships.

Key Takeaways on Korea’s Large–Small Business Joint Expansion Program 2026

• South Korea’s Ministry of SMEs and Startups launched the 2026 Large–Small Business Joint Overseas Expansion Support Program.
• The initiative allocates KRW 16.9 billion to support SME global expansion through partnerships with large corporations.
• 25 projects have been selected in the first round, with recruitment underway for the participating SMEs.
• The program expects to support around 50 projects in total during 2026, with a second recruitment round planned for May.
• SMEs can receive up to KRW 200 million per project, with government support covering up to 60% of project costs.
• New program features include multi-corporate consortium projects, expanded long-term funding, and support for P-turn production relocation models.
• Sector initiatives include K-beauty and AI overseas expansion programs, including collaborations involving CJ Olive Young and MegazoneCloud.
• SMEs can apply through the Sangsaeng Nuri cooperation platform beginning March 9.

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