The Ministry of SMEs and Startups, led by Minister Han Seung-sook, convened the second Small and Medium Enterprises Policy Council on May 22nd, 2026, to discuss strategies for enhancing the efficiency of support systems for small and medium enterprises (SMEs). The meeting emphasized a collaborative dialogue between public and private sectors to drive growth and performance targets in the sector.

The need for reform comes as current SME support initiatives require a restructuring to ensure effective use of limited budgets while fostering company growth. Since early this year, the Ministry, in conjunction with the Ministry of Economy and Finance, has developed efficiency guidelines and reviewed 477 SME support projects across 17 government departments. The council evaluated the outcomes of this review and explored future efficiency strategies.

In addition, the council reviewed proposed amendments to the support system that focuses on fostering growth and performance. This restructured evaluation process aims to concentrate support on high-potential SMEs, enabling them to compete and expand into global markets. The discussion included the necessity for multi-year and large-scale bundled support for innovative firms, underscoring the importance of a detailed reform plan.

Furthermore, the council checked the implementation status of the 'Large-Medium Enterprises Co-Growth Growth Strategy' announced in January. Of the 38 initiatives outlined, two tax-related tasks have been completed, while the remaining 36 tasks, including expanding co-operation financing and introducing a Korean-style evidence disclosure system, are continuing without issues.

Minister Han Seung-sook indicated that discussions from this policy council will lead to a comprehensive redesign of the budgetary structure, assessment systems, and support methods within SME initiatives, driving a focus towards growth and performance. She emphasized the Ministry’s commitment to creating exemplary practices and called for the active participation of relevant departments.