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Feb. 19, 2025                                    
                                                  
Ministry of SMEs and Startups Unveils Export Support Measures for SMEs and Startups

SEJONG – The Ministry of SMEs and Startups (MSS) has unveiled its 2025 Export Support Measures for SMEs and Startups at the 6th Export Strategy Meeting held on Tuesday, February 18.

Exporting SMEs play a crucial role in the Korean economy, driving higher sales and employment compared to other SMEs. However, these businesses face increasing challenges in the global market, including rising protectionism in key export destinations and the accelerating pace of digital transformation.

In response, MSS introduced the ‘Support Measures for Globalization of SMEs and Startups’ in May 2024 and has been working to refine export support policies to better align with the changing external landscape.

The new '2025 Export Support Measures for SMEs and Startups is the result of analyzing key domestic and international factors, including high exchange rates, the Second Trump administration's tariff measures, and the export performance of SMEs in 2024. The updated measures aim to enhance and strengthen the measures established in 2024.
The key components of the measures are as follows:

1. MSS will establish a support system to swiftly address export challenges, including tariff measures under the Second Trump administration.

➊ MSS will set up Export Difficulties Reporting Center at 15 export support centers nationwide, streamline the policy fund evaluation process, and, if needed, increase the logistics support limit for export vouchers.

These centers will assist in filing export damage claims and simplify the evaluation process for policy funds aimed at SMEs seeking to diversify their export destinations. The initiative is designed to mitigate the impact of U.S. tariff measures on exports. Additionally, in anticipation of potential management crises for SMEs, MSS is considering further support measures, such as emergency funds for stabilization and an increase in the export voucher logistics support limit (from KRW 30 million to KRW 40 million).

➋ To respond to the restructuring of global supply chains, MSS will allocate an initial policy fund of KRW 60 billion to overseas subsidiaries and establish an “Global Expansion Support Hub"” in Silicon Valley.

To support the stable establishment and operation of Korean SMEs' overseas subsidiaries, MSS will announce an operational plan for the policy fund in March. The fund will be piloted at subsidiaries in countries hosting Global Business Centers (GBCs) and Korea Startup Centers (KSCs), including the United States. Additionally, MSS will increase financial guarantees for companies expanding into overseas markets, raising the amount from KRW 10 billion in 2024 to KRW 30 billion in 2025.

The pilot Global Expansion Support Hub in Silicon Valley will integrate the functions of GBCs, KSCs, and the Korea Venture Investment Corp. (KVIC) overseas offices. This hub will offer comprehensive support, from entry space and management services to legal and administrative assistance, startup incubation, and support with local investment attraction.

➌ MSS will select around 50 high-priority SME export items for special management.

In the future, MSS will focus on approximately 50 SME export items likely to be impacted by U.S. tariff measures. This will include analysis and provision of information for export diversification, as well as consulting services.

➍ MSS will promptly provide information on changes in national policies, such as export regulations.

MSS will proactively identify and share updates on evolving policies, including U.S. regulations against China. In collaboration with law firms and other organizations, MSS will publish dedicated guides to help SMEs navigate complex overseas regulations and policy changes.

2. MSS will establish a resilient export structure for SMEs, capable of withstanding external environmental changes.

➊ In 2025, MSS will support 1,000 promising early-stage exporting companies, each with exports of less than USD 1 million, helping them reach USD 1 million in exports.

To meet the 2027 goal of nurturing 3,000 SMEs with exports exceeding USD 1 million, as outlined in the 2024 export strategy, MSS will launch a new program offering expert consulting and mentoring for these early-stage companies. Additionally, MSS will expand export corporatization support for innovative domestic companies with high export growth potential and robust microenterprises.

➋ MSS will actively support SME tech service exports by introducing an exclusive export voucher worth KRW 14 billion.

Starting in 2025, MSS will implement a product-centered export support system for SMEs. The new export voucher for tech services will cover specialized areas, including costs for using foreign cloud services—expenses not covered by existing export vouchers. This initiative will be announced in March. Additionally, a “K-Innovation Delegation,” composed of innovative tech service companies, will be dispatched overseas.

➌ In response to the situation under the Second Trump administration, MSS will establish the ‘K-Beauty Loan,’ worth KRW 20 billion, to support cosmetics production. It will also host the International K-Beauty Exhibition.

To ensure K-Beauty, which achieved the highest export performance in 2024, maintains its status as a global premium brand, MSS will introduce the K-Beauty Loan to support SME production. Additionally, the K-Beauty International Exhibition will feature major overseas cosmetics distributors from countries such as France, Germany, and Japan as buyers. The exhibition aims to elevate K-Beauty's global standing while actively supporting export diversification.

➍ MSS will select three major new Hallyu (Korean Wave) items from SMEs and introduce specialized programs to support them

The selected items, “Apparel and Personal Accessories,” “Fashion Accessories (such as Jewelry),” and “Stationery and Toys”, were chosen for their high export proportion among SMEs and significant growth potential driven by the Korean Wave. MSS will implement specialized programs, including support for entering local global distribution networks.

➎ MSS will introduce customized global expansion support projects for emerging markets.

In response to changing economic policies and export conditions, MSS will identify strategic products for four regions: ASEAN, the Middle East, India, and Latin America. Tailored support programs will be provided for these products, including buyer consultations and assistance with attracting local investments.

3. MSS will strengthen existing networks and collaboration foundations, such as the Council to Support Internationalization of SMEs and Startups

➊ To enhance the collaborative foundation of the Council, established in 25 overseas missions across 17 countries, MSS will introduce a new direct support program involving overseas diplomatic missions.

Since the memorandum of understanding was signed between MSS and the Ministry of Foreign Affairs in April 2024, the Council has been active in 25 overseas diplomatic missions. To date, 64 meetings have been chaired by heads of missions, and 631 corporate complaints have been resolved with the support of participating organizations.
Additionally, the Council has provided 515 pieces of information regarding host countries. In 2025, overseas diplomatic missions will further solidify this cooperation by establishing programs, such as business forums, to directly assist Korean companies entering local markets. These programs will offer valuable information, identify cooperation opportunities, and address challenges.

 ➋ A 'Global Navigator' will also be established to systematically provide overseas information identified by the Council.

Minister Oh Youngju stated, “This measure focuses on swiftly addressing urgent export issues faced by SMEs, such as high exchange rates and the Second Trump administration, while establishing a robust export structure for SMEs that can withstand future external challenges.” She added, “Since all exporting Korean SMEs will inevitably be impacted by U.S. tariff measures, we will operate Export Difficulties Reporting Center nationwide, where SMEs facing challenges can access immediate consulting support. Additionally, we will quickly mitigate these difficulties through emergency management stabilization funds and support for export diversification.”