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.
