The Ministry of SMEs and Startups (MSS), led by Minister Han Seongsook, announced that the National Assembly has approved a total expenditure of KRW 16.5233 trillion (USD 11.32 billion) for 2026 – an increase of KRW 1.2745 trillion (USD 870 million), or 8.4 percent, from the 2025 main budget of KRW 15.2488 trillion (USD 10.44 billion). The approval continues a steady upward trend, with the ministry’s annual budget rising from KRW 13.5 trillion in 2023 to KRW 14.9 trillion in 2024, KRW 15.2 trillion in 2025, and now KRW 16.5 trillion in 2026.
 
A central feature of the 2026 plan is the sharp expansion of SME R&D investment. After falling to KRW 1.3932 trillion (USD 950 million) in 2024, SME R&D funding rebounded to KRW 1.517 trillion (USD 1.04 billion) this year and will surge to KRW 2.1959 trillion (USD 1.5 billion) in 2026 – the largest allocation on record and a full restoration of reductions made under the previous administration.
 
Alongside strengthened R&D outlays, the 2026 budget increases strategic investments across the startup and venture ecosystem. Government contributions to the Korea Fund of Funds will increase from KRW 500 billion (USD 340 million) in 2025 to KRW 820 billion (USD 560 million) in 2026, allowing greater support for regional investment, the startup exit ecosystem, and second-chance investment mechanisms.
 
MSS will also introduce the new Unicorn Bridge Program, allocating KRW 32 billion (USD 22 million) next year to support around 50 high-potential tech startups. The program will deliver an integrated package of assistance – from commercialization funding and technology upgrading to establishing overseas subsidiaries – to help more Korean startups compete successfully in global markets.
 
Support for early-stage founders will also rise. The Startup Package Program will increase from KRW 162.3 billion (USD 111 million) in 2025 to KRW 195.2 billion (USD 135 million) in 2026, offering stage-specific commercialization support and expanded AI-linked training. Funding for deep-tech and frontier innovations under the Startup 1000+ Project for Cutting-Edge Industries will rise from KRW 131 billion (USD 90 million) to KRW 145.6 billion (USD 100 million).
 
Minister Han stated that detailed implementation plans for all 2026 programs will be finalized within the year and that the ministry will ensure supportive and efficient execution of its expanded budget to reinforce small-merchant recovery and accelerate SME, venture, and startup growth.

Additional 2026 Budget Allocations
 
Beyond the major investment items outlined above, the 2026 budget includes a wide range of targeted programs designed to strengthen manufacturing competitiveness, support small merchants, and expand collaborative growth across industries.
 

1. Manufacturing Innovation and AI Transformation

• Smart Factory Adoption and Upgrading

KRW 402.1 billion (USD 275 million), up from KRW 236.1 billion in 2025

• Region-Led AI Transformation (AX)

KRW 49 billion (USD 34 million), an increase from KRW 35 billion in the 2025 supplementary budget
 

2. SME Growth Ladder and Regional Competitiveness

• Jump-Up Program (supporting promising SMEs toward mid-size scale)

KRW 57.8 billion (USD 40 million), doubled from KRW 29.9 billion

• SME Innovation Voucher Program

KRW 65.2 billion (USD 45 million), up from KRW 61.4 billion
 

3. Export Support and Strategic Industries

• K-Beauty Cluster Initiative (new)

KRW 3 billion (USD 2 million)

• Export Consortium Program

KRW 19.8 billion (USD 14 million), up from KRW 15.9 billion
 

4. Small Merchant and Micro-Business Recovery

• Management Stability Vouchers

KRW 579 billion (USD 397 million), following KRW 1.566 trillion in the 2025 supplementary budget

• Hope Return Package (re-employment and restart support)

KRW 305.6 billion (USD 210 million), up from KRW 245 billion

• Onnuri Market Vouchers

KRW 458 billion (USD 314 million), up from KRW 390.7 billion

• Local Commercial District Development (Local Renaissance 2.0)

KRW 37.8 billion (USD 26 million), up from KRW 4.4 billion

• Entrepreneur-Type Small Merchant Development

KRW 131.1 billion (USD 90 million), up from KRW 83.4 billion

• Clean Manufacturing Environment for Small Producers

KRW 12.6 billion (USD 9 million), up from KRW 8.4 billion
 

5. Connected Growth and Open Innovation Ecosystems

• Co-Prosperity Programs for Large and Small Firms (ESG-linked)

KRW 20.1 billion (USD 14 million), up from KRW 17.8 billion

• Smart Factories

KRW 40 billion (USD 27 million), up from KRW 34 billion

• Global Corporate Collaboration Program

KRW 60 billion (USD 41 million), up from KRW 53 billion

• Public-Private Open Innovation Platform

KRW 24.2 billion (USD 17 million), up from KRW 20 billion