Korea Distribution Agency for SMEs and Startups

What Korea Distribution Agency for SMEs and Startups does

Korea Distribution Agency for SMEs and Startups (KODMA, 한국중소벤처기업유통원) is a government-affiliated public institution established in 1995 and operating under Korea's Ministry of SMEs and Startups. Statutorily mandated under the SME Promotion Act (Article 69) as the country's sole integrated distribution and marketing support agency for SMEs, venture firms, and micro-businesses, KODMA delivers end-to-end commercialization infrastructure spanning physical retail (Haengbok Department Store — 4,206 pyeong across floors B1–5F in Seoul's Mok-dong; 6 policy duty-free stores at Incheon International Airport T1 and T2 covering >1,039 m²; an in-department policy store at Hyundai Department Store Pangyo), broadcast media sales agency across 7 TV home shopping channels and 10 data home shopping channels, and digital channels including the Panpan Deero integrated support portal, Panpan Seller multi-mall management system, Companion Growth Mall B2B welfare platform (serving 237 subscribing enterprises and institutions and ~1 million employees over ~3,000 SME suppliers and ~200,000 products), Sodam Square regional digital-commerce hubs (10 locations), and Sodam Store O2O flagships.

The technology backbone consists of internally developed platforms — Panpan Deero, Panpan Seller, the live-commerce platform Gachi-Ssapsida, the Companion Growth Mall, the SMPP (Public Procurement Comprehensive Information Network, smpp.go.kr) and the Performance Certification (EPC) system — integrated with equity-owned broadcast sales channels via 50% ownership of Gongyoung Shopping (KRW 80 billion capital) and 14.96% ownership of Home&Shopping (KRW 100.3 billion capital), plus 100% ownership of facility-management subsidiary Han-Yuwon Partners. KODMA also runs EPC product certification (valid 4 years), direct-production verification, trial-purchase and real-world testing programs for SMEs, the Brand K national co-brand initiative (launched 2019) for export positioning, and twice-yearly Korea Together Festival consumer campaigns. Applications include the Haengbok mobile shopping app and integration with major private e-commerce platforms.

Revenue is generated through transaction commissions on home shopping sales (lower than private alternatives), marketplace commissions on Companion Growth Mall sales (with 100% cash payments to suppliers), product sales commissions from Incheon Airport duty-free stores, fees for EPC certification and direct-production verification, and equity income from subsidiaries. Programs are delivered at no or minimal cost to eligible SMEs. The customer base is broad and structurally diversified: thousands of registered SME suppliers plus ~3,000 Companion Growth Mall suppliers, with welfare-point demand from 220 large enterprises, 339 public institutions, and 226 local governments. Marketing reach is supported by Naver Blog, Instagram (@kodma_official), YouTube, the World Korean Business Convention, and dedicated event participation. In November 2024, the institution was rebranded from SME Distribution Center to its current name to formalize its expanded marketing-plus-distribution mandate.

Name

Korea Distribution Agency for SMEs and Startups

Legal name

Korea SMEs & Startups Distribution & Marketing Agency

Website

https://kodma.or.kr

Company type

Private

Founded year

1995

Operating status

Operating

Short description

Korea Distribution Agency for SMEs and Startups (KODMA) is a government-affiliated public institution under Korea's Ministry of SMEs and Startups that provides integrated distribution, marketing, and public procurement support to Korean SMEs, venture firms, and micro-businesses through department stores, duty-free retail, home shopping channels, digital platforms, and certification programs.

Ownership category

akta.pro rank

Product category

SME Distribution & Marketing Support Services

NAICS

Management of Companies and Enterprises (55111), Public Administration (92)

SIC

Retail-Catalog & Mail-Order Houses (5961)

akta.pro primary industry

Sales Support & Customer Retention (Upsell, Win-back, Loyalty) (BPAAABAB)

akta.pro secondary industry

Contract Administration Support (PO/Contract Compliance) (BPAAAJAE)

Keywords

• SME distribution support
• Marketing support services
• Public procurement certification
• TV home shopping agency
• Duty-free retail operations

Headquarters

HQ city

Seoul

HQ country

South Korea

HQ region

Asia

Offices5 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

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

Revenue model

1. TV & Data Home Shopping Sales Agency: KODMA acts as a sales agent for SMEs on TV home shopping and data home shopping channels (7 TV channels including CJ, GS, Hyundai, Lotte, NS, Home&Shopping, KongYoung; 10 data home shopping channels). The agency charges a commission lower than private alternatives, and provides production funding (advance payments secured by guarantee insurance) and early payment services (상생결제) to supported SMEs.
2. Policy Duty-Free Store Operations: KODMA operates policy duty-free stores at Incheon International Airport (6 stores across T1 and T2 terminals as of 2026), providing physical retail space for SME products targeting domestic and international travelers. Revenue is generated through product sales commissions from participating SMEs.
3. Companion Growth Mall (동반성장몰) Platform: An employee welfare e-commerce platform where 237 companies and ~1 million employees access SME products. The platform generates revenue through sales commissions on SME products sold to employees, with 100% cash payment to suppliers and no promissory notes.
4. Performance Certification (EPC) & Direct Production Verification Fees: Fees for operating the Performance Certification (EPC) system that verifies SME tech products for government procurement eligibility, and for conducting direct production verification inspections. Certification is valid for 4 years.
5. Subsidiary Dividend Income: KODMA holds equity stakes in subsidiaries — (주)공영홈쇼핑 (50%), (주)홈앤쇼핑 (14.96%), 한유원파트너스 (100%), 코리아 경기도주식회사 (1.98%) — generating dividend and investment return income.

Pricing tiers

Go-to-market motion1 record

Distribution channels9 records

Marketing channels6 records

Core offering

KODMA is a government-affiliated public institution that provides integrated distribution and marketing support services to Korean SMEs, micro-businesses, and venture companies through a multi-channel ecosystem. Its core offerings include operating an SME-exclusive department store, sales agency services across 7 TV and 10 data home shopping channels, 6 policy duty-free stores at Incheon International Airport, the Companion Growth Mall B2B welfare platform serving 237 enterprises and ~1 million employees, the Panpan Deaelo integrated distribution support portal, the SMPP public procurement information network, the EPC performance certification system, and regional Sodam Square digital commerce hubs and Sodam Store O2O flagship locations. Revenue is generated through transaction commissions, marketplace commissions, certification fees, sales commissions, and dividend income from subsidiary equity stakes.

Product overview

한국중소벤처기업유통원 (KODMA) operates a comprehensive platform-portfolio architecture supporting SME and micro-business distribution and marketing. The core platform is 판판대로 (Panpan Daelo), an integrated distribution support portal that connects to multiple service modules including: 판판셀러 (multi-platform e-commerce management), 동반성장몰 (corporate welfare shopping), and SMPP (public procurement). Key product lines include 행복한백화점 (department store), 정책면세점/정책매장 (duty-free and policy retail stores), and home shopping sales agency services. SME support programs include TOPS (3-stage brand growth), 브랜드 소상공인 점프업 (premium branding), K-수출전략품목 (K-export strategy), and performance certification (EPC). Digital infrastructure comprises 소담스퀘어 (regional digital commerce centers) and 소담상회 (O2O flagship stores). The organization also conducts national promotion campaigns like 대한민국 동행축제 and provides public procurement support through SMPP.

Differentiator

Problem solved

Functional benefit

Brands

• 행복한백화점 (Haengbok Department Store): SME-exclusive department store operated by KODMA, selling quality SME products to consumers. Opened in December 1999, located in Seoul.
• 판판대로 (Panpan Deoro)
• IM Shopping
• Brand K / K-브랜드

Products and services

• Haengbok Department Store (행복한백화점) SME-exclusive department store in Seoul's Mok-dong operating since 1999 with 4 floors of retail space (4,206 pyeong / ~13,900 sqm) and parking for 666 vehicles. Features Kim's Club (B1), restaurant floor (5F), and MegaBox cinema (6F). Sells quality SME products exclusively to consumers.
• TV & Data Home Shopping Sales Agency (홈쇼핑 사업) Sales agency service for SMEs on 7 TV home shopping channels (CJ, GS, Hyundai, Lotte, NS, Home&Shopping, KongYoung) and 10 data home shopping channels. Includes production funding (advance payments secured by guarantee insurance), MD consulting, and early payment services for SMEs with broadcast-ready products. Commission rates are lower than private alternatives.
• Policy Duty-Free Stores (정책면세점) Six policy duty-free stores at Incheon International Airport T1 (Gates 12 and 41) and T2 (Gates 218, 225, 274, 281), selling exclusively Korean SME products (K-beauty, K-food, K-fashion, K-lifestyle) to domestic and international travelers. Total area exceeds 1,039 m². Provides an export testbed function for SME products.
• Companion Growth Mall (동반성장몰) Customized B2B corporate employee welfare shopping mall exclusively featuring SME products. Adopted by 237 companies and approximately 1 million employees spanning large enterprises, public institutions, and local governments. Supports approximately 3,000 SME suppliers with around 200,000 products. Provides 100% cash payment to suppliers with no promissory notes.
• Panpan Deaelo Portal (판판대로) Comprehensive distribution support portal platform integrating various support programs and distribution information for SMEs. Enables businesses to apply for support programs, manage products, and connect with distribution channels through a single digital interface.
• Panpan Seller (판판셀러) Integrated shopping mall management system linking domestic major e-commerce platforms, enabling SMEs to manage product registration, order processing, shipping, and customer service from a single interface across multiple shopping malls.
• Sodam Square (소담스퀘어) Regional digital commerce infrastructure centers operated by 10 partner institutions across Korea, providing comprehensive support from basic digital commerce education to content production and online market entry. Each center provides studio/equipment lending, MD consulting, digital commerce training, product photography/video, and online exhibition support to micro-businesses.
• Sodam Store (소담상회) Smart O2O flagship store for micro-businesses combining offline product display and sales with online linked sales. Features locations at Seoul Forest (opening September 2026, in partnership with Lotte ON), Seongsu (in partnership with Musinsa), and Insadong. Offers zero commission fees and coupon support for participating micro-businesses.
• SMPP Public Procurement Comprehensive Information Network (공공구매종합정보망) Official government portal (smpp.go.kr) providing comprehensive information for SME public procurement market entry, including bid participation information, direct production verification, procurement performance data, EPC certification listings, trial purchase information, and real-world testing support. Used by approximately 3,000 SMEs.
• EPC Performance Certification (성능인증) System verifying and certifying the performance of technology-developed products by SMEs, enabling priority purchasing by public institutions and sole-source contracts. Certification is valid for 4 years and operated by KODMA as the gatekeeper for SME access to public procurement.
• Tech Product Verification Support (기술개발제품 공공기관 실증지원) Program supporting systematic performance and technology verification of SME technology products at public institution sites, covering 80% of costs up to 30 million won per product. 2026 target is approximately 30 companies.
• Policy Store (정책매장) Policy store on the 8th floor of Hyundai Department Store Pangyo (43 m² / 13 pyeong), promoting and selling SME innovative and startup products as a test bed for consumer feedback. Excludes cosmetics and food categories.
• TOPS Program (온라인브랜드 소상공인 육성사업) Three-stage online brand growth program matching government and private platforms 1:1 with small businesses for staged cultivation, progressing from 3,500 companies (Stage 1) to 700 (Stage 2) to 30 (Stage 3) per annual cohort.
• K-Export Strategy Products Program (K-수출전략품목) Program selecting excellent SMEs with products in beauty, fashion, lifestyle, and food sectors showing growth potential for global market expansion through public-private cooperation.
• Brand Microbusiness Jump-up (브랜드 소상공인 점프업) Premium branding program matching verified excellent micro-businesses with private advertising and marketing agencies for comprehensive brand development support including identity establishment, logo/slogan design, and global promotion.
• Win-Win Payment System (상생결제) Receivables monetization program operated with six major Korean banks (IBK, Woori, KB Kookmin, Hana, NH NongHyup, Shinhan) allowing KODMA's trading partners including 1st, 2nd, and 3rd-tier suppliers to monetize receivables from KODMA using the agency's credit rating for early cash flow at favorable rates.

Quantifiable outcome

• 17 home shopping channels (7 TV + 10 data) with 7 major TV channels and 10 data home shopping channels for SME product sales
• +6 more outcomes

Named customers5 records

Segments4 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability3 records

Feature4 records

Partnerships

Eleven partnerships are on record, tiered core, minor and flagship.

• IBK Industrial Bank, Woori Bank, KB Kookmin Bank, Hana Bank, NH NongHyup Bank, Shinhan Bank (상생결제 제휴 금융기관)coreChannel Partner/ Reseller/ Distributor · 1 January 2024Six major Korean banks participate in KODMA's 'Win-Win Payment System' (상생결제), allowing the agency's trading partners (including 1st, 2nd, and 3rd-tier suppliers) to monetize receivables from KODMA using the agency's credit rating, providing early cash flow at favorable rates. Each bank offers a specialized win-win loan product.
• 10 Regional Partner Institutions for Sodam Square (소담스퀘어 수행기관)coreChannel Partner/ Reseller/ Distributor · 1 January 2024KODMA partners with 10 regional institutions to operate Sodam Square digital commerce hubs: OpenNoll (Seoul), Kyungbuk University (Daegu), Busan Economic Promotion Agency (Busan), Jeonju Cultural Industry Promotion Agency (Jeonju), Gangwon Economic Promotion Agency (Gangwon), Gwangju Broadcasting (Gwangju), Korea National University of Transportation (Chungbuk), Chungnam Economic Promotion Agency (Chungnam, opening Oct 2026), Mokpo MBC (Jeonnam, opening Oct 2026), Ulsan Economic Jobs Promotion Agency (Ulsan, opening Nov 2026), and Region & Social Biz (Gyeongbuk, opening Nov 2026).
• Lotte ON (소담상회 with 롯데온)minorChannel Partner/ Reseller/ Distributor · 1 January 2024The Sodam Store Seoul Forest location is being established in partnership with Lotte ON, providing an O2O flagship for micro-businesses with zero commission fees and coupon support.
• Musinsa (소담상회 with 무신사)minorChannel Partner/ Reseller/ Distributor · 1 January 2024The Sodam Store Seongsu location operates in partnership with Musinsa, specializing in fashion and beauty products for micro-business sellers with O2O integration.
• Public Procurement Comprehensive Information Network Partners (공공구매종합정보망 협력기관)coreImplementation/ SI/ Consulting Partner · 1 January 2020KODMA operates the SMPP (smpp.go.kr) in cooperation with public institutions and government ministries. The system provides direct production verification, EPC certification, and public procurement information to ~3,000 SMEs seeking government contracts.
• HanYuwon Partners (한유원파트너스(주))coreChannel Partner/ Reseller/ Distributor · 30 November 2018A 100%-owned KODMA subsidiary (capital: 300 million KRW) that handles facility maintenance, customer service, parking management, building security, and cleaning for the Happy Department Store and KODMA headquarters.
• Hyundai Motor Group (현대자동차)flagshipStrategic or Co-development Partner · 1 February 2018Hyundai Motor Group was the first large enterprise partner to launch the Companion Growth Mall in February 2018, targeting 80,000 employees with 16 billion KRW in welfare spending. This partnership established the model for large enterprise–SME win-win cooperation that KODMA subsequently expanded to 237 companies.
• Incheon International Airport Corporation (인천국제공항)coreChannel Partner/ Reseller/ Distributor · 1 January 2018KODMA operates 6 policy duty-free stores within Incheon International Airport (T1 and T2), providing SME products with direct access to international travelers and K-Wave consumers. The airport corporation provides the retail space infrastructure.
• KGC Brand (코리아 경기도주식회사)minorChannel Partner/ Reseller/ Distributor · 9 November 2016KODMA holds 1.98% equity in KGC Brand, which operates DDP Antenna Shops and Baraji Market to support excellent SME product promotion and sales through both online and offline channels.
• GongYoung Shopping ((주)공영홈쇼핑)coreChannel Partner/ Reseller/ Distributor · 1 February 2015KODMA holds 50% equity in GongYoung Shopping (capital: 80 billion KRW), which operates TV home shopping focused on creative SME products and agricultural/fishery products, plus an internet shopping mall for SME product sales.
• Home&Shopping (주)홈앤쇼핑)coreChannel Partner/ Reseller/ Distributor · 1 April 2011KODMA holds a 14.96% equity stake in Home&Shopping and uses the channel as a key TV home shopping partner for SME product sales. The channel focuses on SME products, supports local government '일사천리' programs for SME growth, and operates a win-win fund and capital program for supplier cooperation.

Scale indicators8 records

Recent moves21 records

Expansion highlights6 records

Broad incumbents

• Enterprise Singapore: Singapore government agency supporting SME growth and internationalization. International analog to KODMA in providing integrated government support for SME development, including market access, capability building, and financing.
• Japan External Trade Organization (JETRO): Japanese government-related organization promoting trade and investment between Japan and the rest of the world. International peer to KODMA in facilitating business internationalization, with overlap in trade promotion and SME export support functions.
• SME Corporation Malaysia: Malaysian government agency coordinating SME development programs under the Ministry of Entrepreneur and Cooperatives Development. Regional peer to KODMA as a national-level SME support institution with similar mission of growing SME contributions to the domestic economy.
• Korea Trade-Investment Promotion Agency (KOTRA): Korean government trade and investment promotion agency under the Ministry of Trade, Industry and Energy. Peer to KODMA as another government-affiliated institution supporting Korean business internationalization, though focused on trade/investment rather than SME distribution channels.
• Korea SMEs and Startups Agency (KOSME): Sister agency under the same Ministry of SMEs and Startups that provides financing, guarantees, and policy support to Korean SMEs. Directly comparable as another ministry-affiliated public institution serving the same SME constituency, though KOSME focuses on capital rather than distribution.
• U.S. Small Business Administration (SBA): U.S. federal agency supporting small business growth through financing, contracting, and counseling. International analog to KODMA in providing comprehensive government-backed support infrastructure for SME development and market access.
• Korea Chamber of Commerce and Industry (KCCI): Largest business chamber in Korea representing companies of all sizes. Comparable to KODMA as an institutional voice for Korean businesses with awards/recognition programs and SME policy advocacy, though KCCI operates as private membership organization rather than government agency.

Regional players

• Small and Medium Enterprise Development Organization (SME DO) Thailand: Thai government organization under the Ministry of Industry supporting SME development. Regional peer to KODMA as a national SME support institution in the Asian market with similar mandates around capability building and market access.

Others

• Korea Customs Service: Korean government agency administering customs, trade facilitation, and duty-free operations. Adjacent peer to KODMA's duty-free store operations and export support programs, particularly relevant for the Incheon Airport policy duty-free retail footprint.

Direct peers

• Korea International Trade Association (KITA): Non-governmental trade association representing Korean trading companies and supporting SME export market entry. Comparable to KODMA in facilitating SME access to domestic and international markets, with overlapping mandates around trade promotion and SME capability building.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• YouTubeyoutube.com/channel/UC1gvZudV6U23NNxvNg-qydg
• Instagraminstagram.com/kodma_official

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries4 records

Funding overview

Funding rounds

Investors

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

M&A

Investments

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

Frequently asked questions about Korea Distribution Agency for SMEs and Startups