2026 Korean Small Business Policy Fund Complete Guide: Eligibility, Rates & Refinancing

In 2026, the Korean government has allocated a total of 3.36 trillion won for small business policy funds, reflecting a continued commitment to supporting micro-enterprises and self-employed individuals. This guide covers every major fund type, eligibility criteria, interest rates, and practical application tips—including the new internet-only bank channels and expanded non-face-to-face applications.

Overview: 3.36 Trillion Won in 2026 Policy Funds

The Small Enterprise and Market Service (소상공인시장진흥공단, 소진공) manages six main categories of policy funds in 2026. These government-backed loans offer interest rates of 2–3.7%, far below commercial bank rates. Whether you need working capital, refinancing of high-interest debt, or growth investment, there's likely a fund that fits your situation.

Fund Types at a Glance

• General Business Stabilization Fund (일반경영안정자금): Up to 70 million won per business, 2.0–3.0% annual rate. For working capital such as rent, payroll, and inventory.
• Credit-Vulnerable Fund (신용취약자금): For business owners with NCB credit score 839 or below. Up to 70 million won, 2.0–2.5% rate.
• Debt Refinancing Loan (대환대출): For NCB score 919 or below. Refinance high-interest commercial loans (7%+) into 2.0–3.0% policy loans. Up to 50 million won.
• Re-challenge Special Fund (재도전특별자금): For business owners who closed a previous business and are starting again. Up to 70 million won at 2.0% rate.
• Youth Employment-Linked Fund (청년고용연계자금): For businesses employing workers aged 15–34. Up to 100 million won, 2.0–2.5% rate.
• Growth Foundation Fund (성장기반자금): For facility investment and business expansion. Up to 100 million won at 2.5–3.7% rate.

Key Changes in 2026

• Internet-only banks (Toss Bank, K Bank, Kakao Bank) now included as lending partners, expanding access.
• Non-face-to-face one-stop application system expanded—apply online without visiting a regional center.
• Debt refinancing eligibility broadened: NCB score threshold raised to 919 (previously 839).
• Digital transformation business plans now given bonus points in evaluation.

How to Apply

• Step 1: Check eligibility at the official Small Business Policy Fund website (소상공인정책자금 홈페이지).
• Step 2: Prepare documents—business registration, financial statements, business plan, tax filings.
• Step 3: Submit online or visit one of 78 regional Small Enterprise Centers (소진공 지역센터).
• Step 4: Evaluation and approval typically take 2–4 weeks.
• Step 5: Loan disbursement through partnered banks (including internet-only banks in 2026).