The Ministry of SMEs and Startups disclosed on the 18th that it has allocated an additional supplementary budget of 5.112 trillion won this year to overcome ongoing domestic and external crises, including trade issues, damage from wildfires, sluggish domestic recovery, and competition in artificial intelligence (AI) technology.

The budget will be used in three areas: response to trade risks, support for recovery of livelihoods, and adaptation to new technologies such as AI.

U.S. President Donald Trump shows a tariff-related executive order at the Rose Garden of the White House in Washington, D.C. on Nov. 2 (local time). /Courtesy of Reuters·Yonhap News

First, measures will be prepared to support export small and medium-sized enterprises (SMEs) that are struggling due to U.S. tariff measures.

To ease the financial burden on small businesses engaged in industries affected by U.S. tariff items or exporting to the U.S., a 'trade risk response emergency fund' of 100 billion won will be temporarily established this year, with support for interest rates, grace periods, and maturity extensions.

In addition, to strengthen the global competitiveness of SMEs, an additional 100 billion won will be supplied for diversifying export countries and entering new markets. An emergency liquidity supply fund of 500 billion won for SMEs experiencing temporary management difficulties will also be supported.

Additionally, 89.8 billion won will be injected into the export voucher program that addresses export issues such as tariff response packages, document agency services, and international transportation, and an additional 10 billion won will be provided to support costs for obtaining overseas certification required by exporting countries.

The government holds an economic relations ministerial meeting and an industry competitiveness enhancement ministerial meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok on Nov. 15, announcing the direction of the supplementary budget. In the livelihood sector, the government supports over 4 trillion won for small businesses and vulnerable groups. It plans to establish a new 'burden reduction credit' program offering 500,000 won annually for small businesses to use for public utility and insurance payments. The photo shows a traditional market in Jongno District, Seoul on that day. /Courtesy of News1

Various business support initiatives will be newly established to help small business owners recover their livelihoods. A new 'small business burden relief credit' program will be created to assist small businesses with annual sales of less than 300 million won by providing 500,000 won each, totaling 1.57 trillion won.

A budget of 1.37 trillion won will be allocated for the 'win-win payback' program to expand sales in traditional markets and among small business owners. Card consumers will receive a 20% refund of the increased card consumption amount compared to the previous year, capped at 100,000 won per person per month, in digital gift certificates.

To ensure short-term operational funds for small businesses with low to medium credit scores, a 'small business Biz Plus card' will also be established. This card will be a credit card for purchases with a limit of 10 million won, offering a 6-month interest-free installment benefit. It will be issued to 70,000 small business owners with credit scores between 595 and 839.

In addition, to support small businesses' stable operation, policy funds for small businesses will be expanded by an additional 500 billion won, and new guarantees worth 2 trillion won will be provided through regional credit guarantee foundations.

To facilitate the rapid recovery of small businesses, an additional 49.4 billion won will be invested in the 'hope return package' program. Support will be provided for store demolition costs and assistance for business recovery. A 10% refund event for digital gift certificates will also be conducted for traditional markets and shopping districts that have been affected by economic downturns and decreased sales for five months.

The U.S. Trump administration and Congress expand export controls on American artificial intelligence (AI) chips to China, taking sanctions against the Chinese AI company DeepSeek. Accordingly, U.S. semiconductor company Intel must obtain government approval to export AI-related chips to Chinese clients, following Nvidia, as reported by the U.S. Financial Times (FT). The photo shows graphics cards displayed in a computer store in Yongsan District, Seoul on Nov. 17. /Courtesy of Yonhap News

Finally, to respond to the rapid changes in new technologies such as AI, support will be provided for the expansion of technological innovation in SMEs in the AI field and the promotion of the adoption and use of AI technology in smart factories.

Support will be expanded for promising technology companies in the AI field to enhance their technological competitiveness through research and development (R&D) programs linked to private investments, known as the Scale-up TIPS.

Additionally, support will be provided for the establishment of manufacturing robots, process automation, and the development of cloud solutions to ensure the application of AI technology in small business manufacturing sites.

Oh Youngju, Minister of the Ministry of SMEs and Startups, stated, 'Through this supplementary budget, we plan to actively support small business owners and SMEs struggling with management difficulties due to U.S. tariff measures, wildfire damage, and a sluggish domestic economy to restore vitality.'