Seoul’s small businesses are the backbone of the city’s economy, and the Seoul Metropolitan Government (SMG) has implemented a range of initiatives to support them throughout their business lifecycle.
Financial Assistance Programs
In 2026, the SMG announced a substantial support package totaling 2.4 trillion won to assist small and medium enterprises (SMEs) and small business owners facing challenges due to economic fluctuations. This package includes:
- 180 billion won in direct loans at fixed rates from the SME development fund.
- 2.02 trillion won in commercial bank cooperative funds with city-subsidized interest.
- 200 billion won in overdraft-style “relief accounts” with special guarantees.
These funds are allocated to support vulnerable small business owners, promote startups, and aid in the growth of excellent companies. [Source]
Digital Transformation Support
Recognizing the importance of digitalization, the SMG launched a digital transformation support program in 2023 aimed at middle-aged small business owners unfamiliar with online platforms. This program offers:
- Digital competency assessments.
- Tailored consulting and training.
- Solution support and post-program follow-up.
Participants have reported an average sales increase of 9.8%, with top performers achieving up to 352% growth. Encouraged by these results, the city plans to expand the program’s scale by 20% to benefit more business owners. [Source]
Lifecycle-Based Support
The SMG provides comprehensive support tailored to different stages of a business’s lifecycle:
- Entry Phase: Aspiring entrepreneurs receive startup consulting, training, mentoring, and funding up to 50 million won to build a solid foundation.
- Growth Phase: Existing businesses benefit from customized consulting and facility improvement funding to enhance their operations.
- Re-Start Phase: For businesses preparing to close, support includes assistance with closure procedures and guidance for resuming economic activities post-closure. [Source]
Addressing Challenges in AI Adoption
Despite the benefits of digital tools, a survey revealed that only 9.7% of small business owners in Seoul are currently using AI, with cost being the primary barrier to adoption. To address this, the SMG is working on initiatives to make digital tools more accessible and affordable for small businesses. [Source]
Through these multifaceted support programs, Seoul aims to empower its small businesses, fostering a resilient and dynamic local economy.