Ministry of SMEs and Startups Launches Major Small Business Funding Program to Support Local Brands and Regional Innovation

The Ministry of SMEs and Startups in South Korea has unveiled a major small business innovation program, committing ₩40 billion to strengthen local brands and revitalize regional commercial districts.

The initiative aims to help small businesses grow into competitive lifestyle and culture brands by leveraging regional specialties, tourism assets, and traditional skills.

Under this new program, the government plans to support around 400 small businesses across the country, with a strong focus on innovation, commercialization, and long-term sustainability.

A Major Push for Small Business Innovation

For the first time this year, the ministry is rolling out a structured package support program worth up to ₩100 million per business.

The program targets entrepreneurs operating in lifestyle sectors such as:

  • Food and beverages
  • Beauty and personal care
  • Fashion and design

Selected businesses will receive funding and structured support to help them move from early ideas to fully developed market-ready products.

The goal is to turn creative concepts into scalable small business brands that reflect local identity and consumer demand.

Funding for Product Development and Commercialization

The program provides end-to-end support covering both product development and market expansion.

Key areas of support include:

  • Eco-friendly material development
  • Product and recipe innovation
  • Prototype creation
  • Branding and packaging design
  • Marketing and commercialization strategies

The initiative also aims to solve real-world challenges faced by small business owners during product development and market entry.

In addition, the government will encourage collaboration with private sector partners to strengthen technical expertise and market competitiveness.

Mentorship, Training, and Business Networking

Beyond financial support, the program includes a strong focus on mentorship and capacity building.

Participants will be connected with experienced entrepreneurs and industry experts who can guide them through the business growth process.

The program will also offer:

  • Business training sessions
  • Networking opportunities
  • Peer collaboration platforms
  • Step-by-step commercialization support

This ecosystem approach is designed to ensure that small businesses do not just start, but also scale successfully.

Strong Focus on Regional Development

A key feature of the initiative is its emphasis on balanced regional development.

More than 70% of selected projects will come from non-metropolitan areas, ensuring that rural and regional economies benefit directly from the program.

Projects that highlight local identity — such as those using:

  • Regional specialties
  • Traditional craftsmanship
  • Tourism resources

will receive priority support.

The aim is to transform these businesses into representative local brands that strengthen regional economies.

Government Vision for Local Brand Growth

Kim Jungjoo, Director of Small Business Policy at the ministry, said the program is designed to help small business owners turn creative ideas into innovative regional brands.

He emphasized that the initiative will help revitalize local commercial districts and support entrepreneurs who are driving new economic activity outside major cities.

Applications for the program will be accepted through the Small Business 24 platform from May 18 to June 8.

Building the Future of Small Business in South Korea

With its combination of funding, mentorship, and regional focus, the South Korea small business innovation program represents one of the country’s most ambitious efforts to strengthen local entrepreneurship.

By investing in creative founders and regional identity-driven businesses, the government hopes to build a stronger, more self-sustaining small business ecosystem.