Government to Provide Up to 2 Billion Won for SMEs Entering the U.S. Market Alongside Large Corporations

The Financial News reported that the government will double support for small and medium-sized enterprises (SMEs) that invest in the United States together with large corporations. It also plans to expand public-private win-win finance to a total of 1.7 trillion won. In addition, over the next five years, the government aims to create a 1.5 trillion won win-win cooperation fund so that the results of economic diplomacy led by large companies can be shared with SMEs and startups.
On the 21st, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Koo Yun-cheol announced this "win-win growth strategy for large and small businesses" at an economic ministers' meeting held at Government Complex Sejong.
The government will increase support to a maximum of 2 billion won over three years when large companies and SMEs jointly enter the U.S. market for investment projects. This doubles the previous ceiling of 1 billion won. For joint expansion to countries other than the United States, support will be available up to 1.5 billion won.
The win-win finance program, under which large corporations and financial institutions contribute funds and guarantee institutions provide linked support to partner companies, will be expanded to a total of 1.7 trillion won. When large companies and others contribute to the Trade Insurance Fund for win-win cooperation, the government will introduce a new tax credit that deducts 5–10% of the contribution from corporate tax.
The government will also raise at least 1.5 trillion won for the win-win cooperation fund over the next five years. To this end, it will increase the share of government-matching projects and offer tailored incentives, such as preferential evaluations related to win-win cooperation, for financial institutions and large corporations.
At the same time, the government will establish a Strategic Export Finance Fund to provide stable support for large-scale, long-term export projects. The fund will be designed so that part of the beneficiary companies' profits is channeled back into the broader industrial ecosystem.

The government will also reinforce mechanisms to ensure that the performance of large corporations flows down to SMEs. The performance-sharing system will be expanded from its current focus on subcontracting relationships to cover all types of business transactions, including platforms, distribution, and dealerships. In particular, when cash or cash-equivalent benefits, such as intellectual property rights, are shared, the shared amount will be counted as double in the shared growth evaluation. The corporate tax credit for the win-win payment system will be extended until 2028.
Sanctions against unfair practices will be strengthened as well. To provide swift relief for companies harmed by unfair trade practices, the government will prepare a plan in the first half of this year to establish a fund dedicated to remedying such damage.
To prevent technology theft from SMEs, the government will introduce a Korean-style discovery system and grant courts the authority to order administrative agencies to submit relevant materials. Administrative sanctions will be toughened, shifting from recommendations for corrective action to corrective orders and penalty points, and fines of up to 5 billion won will be imposed for serious violations.
The evaluation framework will also be broadened. Starting this year, the government will conduct Shared Growth Index evaluations for online platform companies and introduce a Win-Win Finance Index to assess the level of win-win cooperation between financial institutions and SMEs. In the defense industry, a separate evaluation system will be created to measure the level of shared growth.
hippo@fnnews.com Kim Chan-mi Reporter