Korea Small and Medium Business Venture Promotion Corporation

What Korea Small and Medium Business Venture Promotion Corporation does

KOSME (Korea Small and Medium Business Venture Promotion Corporation, 중소벤처기업진흥공단) is a quasi-governmental policy institution established in 1979 under the Small and Medium Enterprises Promotion Act and supervised by the Ministry of SMEs and Startups of South Korea. The organization administers the SME Venture Promotion Fund, which reached 29.3 trillion KRW (~USD 21 billion) in 2025, and disburses policy loans in market-failure segments (BBB-rated and below) that private banks avoid. It operates as the exclusive vehicle for several government-backed SME support programs unavailable through commercial channels.

The corporation's service portfolio spans the full SME lifecycle: subsidized policy loans, export marketing support, human resource training through six regional institutes, factoring and supply chain stability programs, business diagnosis and ESG consulting, youth entrepreneurship acceleration, and the 내일채움공제 (Tomorrow Benefit) long-term employment savings system. It distributes these services through a nationwide network of 34 regional headquarters and branch offices, a digital self-service portal (디지털지점), an integrated call center (1357), and 27 overseas centers (KSC and GBC locations in Tokyo, Paris, Hanoi, Seattle, New Delhi, Riyadh, and others). The technology stack includes the 디지털지점 online application platform, a factoring platform for accounts receivable monetization, the 중기 원패스 integrated SSO system, and the BizPassFinder big-data analytics platform.

As a non-commercial public institution, KOSME is funded through government budget allocations and the SME Venture Promotion Fund rather than commercial pricing. The 2025 annual budget is approximately 11.6 trillion KRW, with 2026 policy lending scale set at 40.6 trillion KRW across six sub-fund categories. The entity employs approximately 1,457 full-time staff organized across 16 bureaus, 13 departments, 5 training institutes, and the Youth Entrepreneurship Academy, with four wholly-owned subsidiaries (Korea Venture Investment Corporation, Korea SME Distribution Center, Korea SME Certification Center, and KOSME Partners) handling specialized operations.

Name

Korea Small and Medium Business Venture Promotion Corporation

Legal name

Korea Small and Medium Business Venture Promotion Corporation

Website

https://kosmes.or.kr

Company type

Private

Founded year

1979

Operating status

Operating

Headcount range

501–1,000 employees

Short description

KOSME is a South Korean quasi-governmental policy institution that administers subsidized financing, export marketing, and workforce development programs for Korean SMEs and startups through a nationwide network of 34 domestic branches and 27 overseas centers.

Ownership category

akta.pro rank

Product category

SME Policy Finance

NAICS

Sales Financing (52222)

SIC

Short-Term Business Credit Institutions (6153), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

SME Term Loans & Growth Capital (FSAKAGAB)

akta.pro secondary industries

SME Lending Platforms & Embedded SME Credit (FSAKAGAJ), Equipment & Asset Finance (SME) (FSAKAGAF)

Keywords

• SME policy financing
• Export marketing support
• Workforce training
• Business diagnostics
• Startup incubation

Headquarters

HQ city

Jinju

HQ country

South Korea

HQ region

Asia

Offices7 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Policy Fund Lending (정책자금 융자): KOSME operates the 中小企業創業및振與기금 (SME Venture Promotion Fund), disbursing policy loans to SMEs. The fund is replenished through bond issuance, principal/interest recovery from prior loans, and government contributions. KOSME does not charge commercial prices; it acts as a policy bridge lender in market-failure segments (BBB-rated and below) that private banks avoid.
2. Export Marketing Support Services: Provides subsidized export marketing support programs, online export platforms, logistics support, and overseas expansion assistance for SMEs, funded through government budgets.
3. Human Resource Development Services: Operates 6 training institutes and youth entrepreneurship programs, providing subsidized skills development for SMEs. Funded by government allocations and employer/employee contributions to savings programs such as 내일채움공제.

Go-to-market motion1 record

Distribution channels4 records

Marketing channels8 records

Core offering

KOSME is a quasi-governmental policy institution that administers the �29.3 trillion Small and Medium Enterprise Startup and Promotion Fund, disbursing subsidized policy loans to Korean SMEs in market-failure credit segments. It also provides export marketing support through 27 overseas centers, workforce training via 6 training institutes, accounts receivable factoring, business diagnostics and consulting, and youth entrepreneurship acceleration programs.

Differentiator

Problem solved

Functional benefit

Brands

• Global Business Center (GBC): Comprehensive rebranded overseas business support center replacing the Export BI, providing overseas market entry support for Korean SMEs.
• K-Startup Center (KSC)
• Youth Startup Academy (청년창업사관학교)
• 내일채움공제 (Tomorrow Benefit System)
• K-Work Platform

Products and services

• SME Policy Fund Lending (정책자금융자) Subsidized policy loans (up to ₩6 billion per enterprise, ₩7 billion for regional companies) at preferential quarterly-set policy base rates for Korean SMEs in BB-rated and below credit segments where private banks do not serve.
• Export Marketing Support (수출마케팅) Programs supporting Korean SME exporters through online export platforms, export voucher programs, overseas buyer matching, logistics support, e-commerce export market entry, and overseas branch (지사화) establishment assistance.
• K-Startup Centers and Global Business Centers 27 overseas centers providing local support for Korean SMEs and startups entering international markets, including K-Startup Centers (KSC) in Tokyo, Paris, Hanoi, Seattle, and New Delhi, plus Global Business Centers (GBC) worldwide.
• SME Training Institutes (인력양성 연수사업) Six regional training institutes (Ansan, Honam, Daegu/Gyeongbuk, Busan/Gyeongnam, Cheonan, Global Leadership) providing subsidized skills development, AI training, and enterprise HR capacity-building for Korean SMEs.
• Youth Startup Academy (청년창업사관학교) Startup education and support program for young entrepreneurs under 39 years old within 3 years of founding, which has produced 5 unicorn companies and 3 listed companies.
• Accounts Receivable Factoring (매출채권팩토링) Factoring platform enabling SMEs to monetize accounts receivable before buyer payment, with annual support limits of ₩1 billion per selling enterprise and ₩3 billion per buying enterprise.
• Performance Compensation Savings System (성과보상공제사업) Policy-based savings system for SME workers' long-term employment and asset formation, operated under the SME Human Resources Support Act through partner banks including IBK, Shinhan, Woori, Hana, NH Nonghyup, and KB Kookmin.
• SME Business Diagnostics (중소기업 진단사업) Business diagnosis and consulting services for SMEs covering management, ESG, technical, and innovation areas to improve operational efficiency and competitiveness.
• SME Innovation Voucher Program (중소기업 혁신바우처사업) Voucher-based innovation support program enabling SMEs to purchase external innovation services including consulting, technology development, and marketing support.
• Jump-Up Program (도약 프로그램) Acceleration program for SMEs in growth phase providing intensive management support, with Year 1 participants averaging 15.0% revenue growth and 6.3% total employment increase.

Quantifiable outcome

• 도약(Jump-Up) Program Year 1 participants: 100 companies averaged 15.0% revenue growth and 6.3% total employment increase
• +5 more outcomes

Named customers1 record

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration6 records

AI capability4 records

Feature4 records

Partnerships

Nine partnerships are on record, tiered minor and core.

• 한국이민정책학회 (Korean Immigration Policy Association)minorStrategic or Co-development Partner · 23 July 2025KOSME and the Korean Immigration Policy Association signed an MOU to strengthen cooperation linking SMEs with foreign human resources, supporting the hiring of international talent by Korean small and medium enterprises.
• 기업은행 (Industrial Bank of Korea)coreChannel Partner/ Reseller/ DistributorKOSME partners with IBK (기업은행) as a distribution channel for 내일채움공제 (tomorrow's livelihood savings program), one of its core human resource stability products. IBK processes corporate contributions and employee enrollment nationwide.
• 신한은행 (Shinhan Bank)coreChannel Partner/ Reseller/ DistributorShinhan Bank serves as a distribution partner for 내일채움공제, accepting corporate and individual contributions nationwide as part of KOSME's human resource stability initiative.
• 우리은행 (Woori Bank)coreChannel Partner/ Reseller/ DistributorWoori Bank serves as a distribution partner for 내일채움공제, enabling nationwide enrollment and contribution management for the savings program.
• 하나은행 (Hana Bank)coreChannel Partner/ Reseller/ DistributorHana Bank partners with KOSME for distribution of 중소기업 재직자 우대 저축공제 (SME Employee Preferential Savings), accepting enrollments and managing contributions.
• NH농협은행 (Nonghyup Bank)coreChannel Partner/ Reseller/ DistributorNH Nonghyup Bank is a banking partner for中小企业 재직자 우대 저축공제, providing enrollment and savings account management services.
• 국민은행 (KB Kookmin Bank)coreChannel Partner/ Reseller/ DistributorKB Kookmin Bank is a banking partner for中小企业 재직자 우대 저축공제, offering enrollment and contribution management nationwide.
• 금융감독원 (Financial Supervisory Service)minorOthersKOSME works with FSS to address illegal financial brokers and unauthorized intermediaries in the policy fund application process, operating a joint illegal broker reporting center.
• 경찰청 (Korean National Police Agency)minorOthersCooperation with police for reporting financial fraud, voice phishing, and cyber financial crimes related to policy fund applications.

Scale indicators6 records

Recent moves19 records

Expansion highlights4 records

Emerging players

• Funding Circle: UK-headquartered digital SME lending platform serving small business borrowers underserved by banks. Comparable in serving SME credit gap but operates as private fintech rather than policy institution.
• OnDeck Capital: US digital SME lender specializing in short-term working capital to small businesses. Comparable in addressing underserved SME borrower segment but as private fintech with automated underwriting.

Broad incumbents

• Korea Development Bank (KDB): Korea's largest state policy bank, offering broader corporate and project finance. Larger scope than KOSME but serves overlapping policy lending mandate for industrial development and SME support.
• China Development Bank: Chinese state policy bank with policy lending mandate to support SMEs and strategic sectors. Comparable institutional form as a state policy bank though much larger in scope and capital base.
• KfW (Germany): German state development bank providing SME and mid-market financing. Broader mandate than KOSME but directly comparable in providing subsidized SME credit and policy-based export/transition financing.

Direct peers

• Korea Credit Guarantee Fund (KODIT): Korea's primary SME credit guarantee institution under the Ministry of SMEs and Startups. Directly comparable as a Korean government-backed institution addressing SME credit access gaps, though operating via guarantees rather than direct lending.
• Korea Technology Finance Corporation (KOTEC): Korean quasi-governmental institution financing technology-oriented SMEs and startups. Directly comparable mandate of supporting SME technology commercialization and growth capital, similar policy-finance structure.
• Japan Finance Corporation: Japanese policy-based financial institution providing SME financing, export support, and human resource development. Closest functional international counterpart to KOSME in scope and structure.
• Industrial Bank of Korea (IBK): Korean state-owned commercial bank focused on SME lending. Directly comparable SME customer focus, and is also a KOSME distribution partner for Tomorrow Benefit System — overlapping mission and customer base.
• Small Business Administration (US SBA): US federal agency administering SME loan guarantee programs and counseling services. International functional equivalent to KOSME in addressing SME credit access gaps through policy instruments.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/channel/UCwA_dkk1AbBOgwr0nTsUZ8A
• Facebookfacebook.com/kosmekr
• Instagraminstagram.com/kosme_official
• Xx.com/kosme_kr

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Subsidiaries4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments21 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Korea Small and Medium Business Venture Promotion Corporation