The Ministry of SMEs and Startups (MSS), led by Minister Oh Young-joo, announced its 2025 budget and fund management plan totaling KRW 15.2488 trillion (USD 10.6 billion approximately), marking a KRW 299.1 billion (USD 209 million approximately) increase from the 2024 budget. The budget was approved during the National Assembly’s plenary session on December 10 and aims to drive innovation and growth among small and medium-sized enterprises (SMEs) and startups.
The MSS identified four core investment priorities for 2025:
1. Fostering deep-tech startups
2. Supporting exporting SMEs
3. Promoting regional innovative growth
4. Establishing a growth ladder for SMEs
New Initiatives for Deep-Tech and AI Startups
A significant highlight of the 2025 plan is the introduction of a dedicated support program for startups in the AI and fabless semiconductor sectors. This initiative will strengthen collaboration between large corporations and deep-tech startups, aiming to cultivate global unicorn companies. The MSS also plans to shift its R&D support focus toward national strategic technologies and global cooperation, moving away from a broader funding approach.
Boosting Export Capabilities
To enhance global competitiveness, the MSS will introduce support for tech service exports and expand scale-up financing tailored to exporting SMEs. Additionally, the ministry will lay the groundwork for a global startup hub, set to launch in 2025, designed to attract global big tech companies and top talent to South Korea.
Growth Opportunities for SMEs
For SMEs, the MSS will implement a new Jump Up Program, designed to help promising small enterprises transition into mid-sized companies. The ministry will also expand public-private collaboration initiatives, including a strengthened Joint Growth Network Loan, aimed at fostering supply chain partnerships between large and small enterprises.
Focus on Crisis Recovery and Economic Vitality
Recognizing ongoing economic challenges, the MSS plans to actively monitor the execution of its 2025 initiatives to support small business owners and the self-employed. The ministry is committed to using rapid fiscal execution and targeted policies to restore economic vitality and improve livelihoods.
Minister Oh Young-joo emphasized the ministry’s dedication to fostering innovation. “This budget reflects our commitment to helping SMEs and startups overcome challenges, scale new heights, and contribute to a dynamic, prosperous economy,” she said.
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