[Gangnam Perspective] The 'Wind and Wish' of the SME Sector in the Year of Byeong-o

Wind refers to the movement of air caused by differences in pressure. Wish, on the other hand, is what we hope for or desire in our hearts.
As we approach the new year, just ten days away, both types of 'wind'—the physical and the aspirational—are present in the small and medium-sized enterprises (SMEs) and venture company sector.
For the SME and venture company sector, the excitement and hope that usually accompany a new year seem distant as we approach 2026, the Year of Byeong-o. With global economic slowdown and rising inflation creating significant uncertainty, SMEs continue to face tough times and are hoping more than ever for a shift in government policy. As domestic demand recovery stalls, global protectionism and supply chain instability are casting a shadow over the entire industry, especially for export-oriented SMEs. Furthermore, with fixed costs such as minimum wage and electricity expected to rise, the business outlook for SMEs and venture companies is expected to be even more sluggish than this year.
Amid these challenges, it is fortunate that the government has announced plans to take proactive measures to support SMEs.
The Ministry of SMEs and Startups recently reported to the President that it will categorize SMEs by their growth stage—rapidly growing companies, stagnant companies, and those needing to change industries—and tailor its support accordingly. Companies with high growth potential will receive financial support, while those lacking potential will be assisted in restructuring. The ministry also plans to strengthen support for local small business owners and provide comprehensive assistance for companies seeking a second chance.
In particular, to boost venture investment, the ministry expressed its intention to expand the Fund of Funds budget and implement step-by-step investment and guarantees, aiming to become one of the world's top four venture powerhouses. The policy direction for venture investment is to establish a virtuous cycle of innovation investment—linking investment, exit, and reinvestment—while building an ecosystem where the early, growth, and exit stages are seamlessly connected.
The essence of these changes lies in a paradigm shift in policy. Unlike in the past, when support was only provided after a crisis had occurred, the new approach aims to use data to detect risk signals early and proactively prepare countermeasures before companies fall into crisis.
This demonstrates that, in an economic environment where uncertainty is the norm, policy can no longer rely solely on past experience or intuition. It is also significant that the policy perspective now extends beyond simply viewing SME growth as a risk or burden, and instead supports them even after they have grown. Adjusting the criteria for SME classification, strengthening scale-up policies, and expanding R&D investment for technology-innovative companies are all representative examples.
It remains unclear when these policies will be fully implemented or how much tangible support will result. However, even amid uncertainty, the fact that a variable has emerged that could bring positive change to the SME and venture company sector—which has been stuck in the worst of environments—is meaningful in itself.
The key question now is whether these winds of change will truly fulfill the wishes of the SME and venture company sector. If these winds amount to nothing more than a gentle breeze, not only will change fail to materialize, but even the growth momentum that has been maintained so far could come to a halt.
Comprehensive institutional support must inject a wind of change into the SME and venture ecosystem and create opportunities to move toward a virtuous cycle. For example, there are calls to provide time to prepare for the Yellow Envelope Act, which will take effect in March next year, and the Amendment to the Commercial Act, which mandates the cancellation of treasury shares, through grace periods and supplementary measures.
It is never easy to bring about changes that fulfill expectations and wishes. However, as the large ship that is the SME and venture company sector stands at a turning point, poised to navigate past reefs and into safer waters, a favorable wind is more necessary than ever. For this ship to sail smoothly, the sails of government policy and institutions must work in harmony with the oars of business. In the Year of Byeong-o, we hope that the SME and venture company sector will ride the winds of change toward growth and recovery.
kim091@fnnews.com Reporter