South Korea is linking this year’s record ₩35.5 trillion R&D budget to commercial technology and startups while adding ₩550 billion to policy funds to support struggling small firms and university spin‑outs. The package increases loans and eases eligibility for firms hit by disruption — including a new category for companies affected by the Middle East conflict — and expands support for AI and deep‑tech scale‑ups.

Cash for distressed firms and export diversification

  • Emergency Management Stabilisation Fund: ₩250bn — loans up to ₩1bn for up to five years; Q2 interest rate 3.64%.
  • New Market Entry Support Fund: ₩100bn — working capital loans up to ₩1bn (five years), facility loans up to ₩3bn (ten years); policy fund base rate Q2 3.14%.
  • Innovative Startup Commercialisation Fund: ₩150bn — working capital loans up to ₩500m; facility loans up to ₩6bn.
  • Restart Fund: ₩50bn — increased support to encourage entrepreneurs who have had honest failures.

The Stabilisation Fund now includes a new category for companies affected by the Middle East war, targeting firms with heavy import–export links to the region and petrochemical supply‑chain firms. For these firms the ministry is relaxing usual eligibility limits on capital and assets and waiving the requirement to show a 10% drop in sales or operating profit.

More cash and looser limits for innovation

The supplementary budget expands direct support for AI and deep‑tech startups and offers larger, longer loans aimed at scale‑up and capital expenditure. Restart Funds will also be increased to encourage new ventures after previous failures.

Systemic changes to turn research into companies

Deputy Prime Minister Bae Kyung‑hoon unveiled a pan‑ministerial 'R&D Outcome Diffusion Expressway' to chain basic research, scale‑up, demonstration and market access. The government plans to expand collaborative budgets and link evaluation methods so projects are not treated as isolated silos, with the aim of converting the ₩35.5 trillion R&D budget into more startups and commercial products.

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Emergency Management Stabilisation Fund loans are available up to ₩1 billion at a Q2 rate of 3.64%; the policy fund base rate for Q2 is 3.14%.

This article was created with AI assistance.