"Sharing Order and Export Achievements with SMEs"... Government to Supply 1.7 Trillion Won in Win-Win Financing

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 win-win financing to directly share and spread the achievements of large conglomerate-led orders and exports, achieved through economic diplomacy, with small and medium-sized enterprises (SMEs). As a measure to strengthen the foundation for win-win cooperation between large corporations and SMEs, fines for technology theft will be increased to a maximum of 5 billion won. The win-win ecosystem will also be expanded beyond the traditional manufacturing sector to include online platforms, finance, and the defense industry.

On January 21, the government, led by Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol, announced the "Win-Win Growth Strategy for Large Corporations and SMEs" at an economic ministers' meeting with relevant ministries. This initiative is a follow-up to the "2026 Economic Growth Strategy" and outlines tasks to realize "growth for all," where large corporations and SMEs share achievements and grow together. The government has prepared three main strategies for win-win growth between large corporations and SMEs: direct sharing and dissemination of economic diplomacy achievements, strengthening the feedback loop from large corporations to SMEs, and expanding the win-win ecosystem.

Direct Sharing and Dissemination of Economic Diplomacy Achievements

First, when SMEs enter the United States together with large corporations to pursue investment projects, the government will double the existing support and provide up to 2 billion won over three years. For large corporation-SME cooperation projects, preferential funding for exports and orders will be provided 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.

In addition, 1.7 trillion won in win-win financing will be supplied through contributions from large corporations and financial institutions, with guarantee agencies providing support to partner companies. Notably, the win-win financing program, funded by Hyundai Motor, Kia, Woori Bank, and KB Kookmin Bank and supported by guarantee agencies, will be expanded to 1.3 trillion won. A new 15 billion won win-win program for partner companies, funded by POSCO International and guaranteed by the Korea Credit Guarantee Fund, will also be introduced. Furthermore, 400 billion won in preferential funding for steel industry export supply chains, funded by POSCO and Industrial Bank of Korea and guaranteed by Korea Trade Insurance Corporation, will be provided. A new tax credit for contributions to the Trade Insurance Fund for win-win cooperation will be introduced, allowing a 5 to 10 percent deduction from corporate tax on contributions.

The win-win cooperation fund will be established at more than 1.5 trillion won over the next five years. To achieve this, the government will increase the proportion of matching projects, and provide tailored incentives such as preferential evaluations for financial companies and defense sector system integrators regarding win-win cooperation.

A "Strategic Export Finance Fund" will also be established, using a portion of the profits gained by beneficiary companies from export financing as resources. 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 the Feedback Loop from Large Corporations to SMEs

To build an open cooperation ecosystem, such as joint technology development between large corporations and SMEs, the government will allocate about 30 percent of government-secured GPUs to SMEs and startups at usage fees 5 to 10 percent lower than market prices. This year, the number of win-win smart factories in the artificial intelligence (AI) sector will be expanded to 20, and the government subsidy ratio will increase from 30 percent to 50 percent. By 2030, 100 AI factories will be established, developing manufacturing AI that can be jointly utilized by large, mid-sized, and small partner companies and applied in the field.

The performance-sharing system, previously applied only to principal-subcontractor transactions, will be expanded to all business-to-business transactions, including platforms, distribution, and dealerships. The scope of the supply price indexation system will be broadened from major raw materials to include energy costs, and incentives such as exemption from principal-subcontractor investigations will be expanded for companies with excellent indexation practices. To compensate for the weak bargaining power of individual SMEs, a system will be established granting SME cooperatives the right to request negotiations, enabling them to negotiate transaction terms with large corporations and others.

To eradicate technology theft from SMEs, a Korean-style discovery process and the authority for courts to order administrative agencies to submit materials will be introduced. In addition, the number of special judicial police officers dedicated to technology theft will be increased, and guidelines for reflecting R&D costs and estimating damages will be developed to ensure realistic compensation. Administrative penalties and sanctions for technology theft will be expanded to include corrective orders and penalty points, and for serious violations, fines of up to 5 billion won will be imposed.

Expanding the Win-Win Cooperation Ecosystem to Online Platforms

The government will also expand the win-win cooperation ecosystem to online platforms by strictly responding to abuses of monopoly power by delivery platforms and considering measures to reduce commission burdens for participating businesses. Starting this year, a co-prosperity index evaluation will be conducted for online platform companies, and a win-win finance index will be introduced to assess the level of cooperation between financial institutions and SMEs.

In the defense sector, a new win-win cooperation evaluation system will be introduced, providing incentives based on the level of cooperation. For nuclear power SMEs and mid-sized companies, support will be provided for consulting, certification, and marketing costs to strengthen supply chains and facilitate overseas expansion.

The government plans to establish and operate a "Public-Private Joint Win-Win Cooperation Review Meeting," chaired by the President and attended by the Committee for Shared Growth, major conglomerates, and partner SMEs, to review progress on the initiatives.

Minister of SMEs and Startups Han Seongsook said, "We will work closely with relevant ministries and related organizations to ensure that this win-win growth strategy is rapidly established in the field and promptly communicated to the public and businesses. At the same time, we will monitor the situation on the ground through the voices of companies to ensure that the measures are implemented without disruption."