Ministry of SMEs and Startups Begins Full-Scale Reorganization of Affiliated Agencies... Merging Korea Small and Medium Venture Business Distribution Center and Public Home Shopping Co., Ltd.

[Financial News] The Korea Small and Medium Venture Business Distribution Center, which has been responsible for supporting sales channels for small and medium-sized enterprises (SMEs), and Public Home Shopping Co., Ltd. are merging into one. As the government embarks on a structural reorganization to reduce eight agencies under the Ministry of SMEs and Startups, the integration of similar and overlapping functions appears to be gaining momentum.
According to the 'Public Institution DIET 2026' announced jointly by relevant ministries on the 3rd, the Ministry of SMEs and Startups will reduce the number of affiliated and related organizations by eight. This will be done through the integration of similar and overlapping functions, the elimination of requirements for designation as public institutions, and the transfer of jurisdiction.
The biggest change is the integration of the Korea Small and Medium Venture Business Distribution Center and Public Home Shopping Co., Ltd. The government plans to merge the two organizations into a tentatively named 'SME Marketing Promotion Corporation' and establish a unified distribution platform that handles everything from discovering SME products to consulting, store entry, sales, and performance management.
The Korea Small and Medium Venture Business Distribution Center has been responsible for expanding online and offline sales channels, digital transformation, and marketing support for SMEs and small business owners. Public Home Shopping Co., Ltd. supports the sale of products from SMEs and small business owners through TV home shopping and mobile and online sales channels.
Although both institutions support the expansion of sales channels for SMEs, criticism has been raised that the connectivity of support is lacking because policy projects and the operation of actual sales channels are separated. The government plans to consolidate the two agencies into a single support system that covers everything from discovering SME products to actual sales.
However, specific methods, such as which institution will serve as the center for the integration or whether a new legal entity will be established, have not yet been determined. The location of the headquarters, organizational and personnel placement, and detailed schedule following the integration are also expected to be decided through subsequent discussions.
The startup and facility management functions of agencies under the Ministry of SMEs and Startups will also be adjusted.
The Korea Startup Incubation Association will be integrated into the Korea Institute of Startup & Entrepreneurship Development (KISED) to link startup incubation functions with the execution of government startup support programs.
Kibo Mate, a subsidiary of the Korea Technology Finance Corporation (KOTEC); KOSME Partners, a subsidiary of the Korea SMEs and Startups Agency (KOSME); and Hanyuwon Partners, a subsidiary of the Korea Small and Medium Venture Business Distribution Center, will be merged into an entity tentatively named 'SME Venture Management Co., Ltd.' The plan is to consolidate dispersed functions—including facility management, disaster prevention, electrical and mechanical equipment, cleaning, and sanitation management—into one entity to establish a dedicated safety management organization and a standardized inspection system.
Some agencies will be transferred to other ministries or agencies. The Disabled Enterprise Business Center will be transferred to the Korea Employment Agency for Persons with Disabilities (KEAD) under the Ministry of Employment and Labor (MOEL), and the Korea Small Business Institute (KOSBI) will be transferred to the National Research Council of Economics, Humanities and Social Sciences under the Office for Government Policy Coordination.
The Korea Institute of SMEs and Ventures, the Korea Industry-Academic Research Association, and the Women Enterprise Supporting Center were classified as targets for resolving the requirements for designation as public institutions.
The government stated, "We will guarantee the employment succession of employees, excluding executives, during the consolidation process and ensure that treatment does not deteriorate before and after the merger."

[email protected] Kim Hyun-chul Reporter