Government Announces Win-Win Growth Strategy for Large Corporations and SMEs
Achieving ‘Growth for All’ Through Cooperation Between Large Corporations and SMEs
The government will provide 1.7 trillion won in inclusive finance to directly share and spread the achievements of large conglomerate-led contract and export successes, achieved through economic diplomacy, with small and medium-sized enterprises (SMEs). As a measure to strengthen the foundation for cooperation between large companies and SMEs, the maximum fine for technology theft will be raised to 5 billion won. The inclusive business ecosystem will also expand beyond traditional manufacturing to include online platforms, finance, and the defense industry.
On January 21, Deputy Prime Minister and Minister of Economy and Finance Koo Yuncheol presided over a meeting of economic ministers, where the government announced the "Inclusive Growth Strategy for Large Companies and SMEs" in collaboration with related ministries. This initiative is a follow-up to the "2026 Economic Growth Strategy" and contains tasks aimed at realizing "growth for all," where large companies and SMEs share achievements and grow together. The government has established three main strategies for inclusive growth between large companies and SMEs: direct sharing and dissemination of economic diplomacy achievements, strengthening the feedback channels from large companies to SMEs, and expanding the inclusive business ecosystem.
Direct Sharing and Dissemination of Economic Diplomacy Achievements
First, when SMEs enter the United States to promote investment projects together with large companies, support will be doubled from previous levels, providing up to 2 billion won over three years. Collaboration projects between large companies and SMEs will receive preferential funding for exports and contracts through the Export-Import Bank of Korea, Korea Development Bank, and Korea Trade Insurance Corporation. To address global supply chain barriers such as those in the European Union (EU), a simplified due diligence support system for SMEs and mid-sized companies will be established.
Additionally, inclusive finance programs-jointly funded by large companies and financial institutions and supported by guarantee agencies-will be supplied at a scale of 1.7 trillion won. A representative example is the expansion of the inclusive finance program, funded by Hyundai Motor, Kia, Woori Bank, and KB Kookmin Bank and supported by guarantee agencies, to 1.3 trillion won. A new 15 billion won cooperative partner support program will be launched, funded by POSCO International and guaranteed by the Korea Credit Guarantee Fund. Furthermore, a 400 billion won preferential export supply chain fund for the steel industry, funded by POSCO and IBK Industrial Bank and guaranteed by the Korea Trade Insurance Corporation, will be provided. A new tax credit for contributions to the trade insurance fund for inclusive cooperation will also be introduced, allowing a 5-10% deduction from corporate tax on such contributions.
The scale of the inclusive cooperation fund will be raised to over 1.5 trillion won over the next five years. To this end, the government will increase the proportion of government-matching projects and provide tailored incentives, such as preferential evaluations for financial institutions and defense industry system integrators in relation to inclusive cooperation.
A "Strategic Export Finance Fund," financed in part by the profits of beneficiary companies from export finance, will also be established. This is expected to strengthen support for large-scale and long-term export projects that were previously difficult to support through existing export finance institutions.
Strengthening Feedback Channels from Large Companies to SMEs
To build an open collaboration ecosystem, such as joint technology development between large companies and SMEs or startups, about 30% of government-secured graphics processing units (GPUs) will be distributed to SMEs and startups at usage fees 5-10% lower than the market price. This year, the number of inclusive smart factories in the artificial intelligence (AI) sector will be expanded to 20, and the national funding share will increase from 30% to 50%. By 2030, 100 AI factories-manufacturing AI solutions jointly developed and applied by large, mid-sized, and small partner companies-will be established.
The performance-sharing system, previously applicable only to subcontracting transactions, will be expanded to cover all types of transactions between companies, including platforms, distribution, and dealerships. The scope of the supply price indexation system will be extended from major raw materials to include energy costs, and incentives such as exemption from direct investigation of subcontracting for outstanding companies will be expanded. To compensate for the weak bargaining power of individual SMEs, a system will be introduced that grants SME cooperatives the right to request negotiations and negotiate transaction conditions with large companies.
To eradicate technology theft from SMEs, a Korean-style discovery system and a court order for administrative agencies to submit materials will be introduced. The number of special judicial police officers dedicated to technology theft cases will be increased, and guidelines for reflecting development costs and assessing damages will be established to ensure realistic compensation. Administrative sanctions and penalties for companies involved in technology theft will be expanded to include corrective orders and penalty points, and for serious violations, large-scale fines of up to 5 billion won will be imposed.
Expanding the Inclusive Cooperation Ecosystem to Online Platforms
The government will also expand the inclusive cooperation ecosystem to online platforms by strictly responding to abuses of monopoly power by food delivery platforms and reviewing measures to reduce commission burdens on participating businesses. Starting this year, the government will evaluate online platform companies using a co-growth index and introduce an inclusive finance index to assess the level of cooperation between financial institutions and SMEs.
In the defense sector, a new evaluation system for the level of inclusive cooperation will be introduced, with incentives provided according to the level of cooperation. For nuclear power SMEs and mid-sized companies, consulting, certification, and marketing expenses will be supported to strengthen supply chains and facilitate overseas expansion.
The government plans to establish a "Public-Private Joint Inclusive Cooperation Review Meeting," chaired by the President and attended by the Committee for Shared Growth, major conglomerates, and partner SMEs, to review the progress of these initiatives.
Minister of SMEs and Startups Han Seongsook stated, "We will work closely with relevant ministries and related associations to ensure that this inclusive growth strategy is quickly embedded in the field and promptly communicated to the public and businesses. We will also monitor the implementation status through feedback from companies to ensure that the measures are carried out without any setbacks."
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