'We generated W400m in sales from just one shopping mall': SME online sales program delivers results

Jang Dong-min, CEO of Sanguadeulae [Korea SMEs and Startups Agency]

"We were able to grow our sales by generating more than 400 million won ($269,000) from Lotte On alone."

Sanguadeulae, a small nut manufacturing company, raised its brand profile and gathered valuable customer data last year after joining the Ministry of SMEs and Startups and the Korea SMEs and Startups Agency's integrated online sales support program, laying the groundwork for further growth.

Jang Dong-min, CEO of Sanguadeulae, said Tuesday that after being selected for the program, the company secured prominent exposure through exclusive product showcases and dedicated promotional events on the online shopping platform Lotte On. "We were also chosen for home shopping broadcast support and generated more than 30 million won in additional sales," he said. Jang added that government policy support is essential for small and medium-sized enterprises to sustain themselves in the online market.

Program helps SMEs compete online with exclusive product showcases

South Korea's online shopping market has grown to exceed 270 trillion won in annual transactions, yet securing online sales channels remains a steep challenge for small and medium-sized enterprises. As platforms multiply, competition intensifies — search advertising, discount campaigns and live commerce have all become battlegrounds where cash-strapped, understaffed SMEs struggle to stand out. Unlike large conglomerates with deep pockets and established brand recognition, smaller companies lack the marketing resources and distribution reach needed to win over consumers.

In response, the Ministry of SMEs and Startups and the Korea SMEs and Startups Agency are running the integrated online sales support program as part of a broader SME marketing support initiative to help small businesses break into online retail channels. First introduced last year, the program links companies through a step-by-step process — from e-commerce platform entry to home shopping broadcast support — to build their overall capabilities. The agency plans to identify and intensively support 300 outstanding small and medium-sized enterprises this year.

Companies selected for the program first receive e-commerce platform entry support. The program helps each business join the platform of its choice based on its specific needs, and provides a tailored package of promotional tools offered by each platform, including live commerce and SNS marketing.

To drive tangible sales growth, the program also supports top-placement promotions such as exclusive product showcases and dedicated sales events. This year, participating companies can choose from four online shopping platforms: major general retailers Lotte On and Hyundai H Mall, fashion and lifestyle vertical platform 29CM, and fresh food specialist Oasis Market.

Sanguadeulae products being sold on a home shopping channel. [Korea SMEs and Startups Agency]

Program opens doors to home shopping, a channel long out of reach for SMEs

The Korea SMEs and Startups Agency also offers companies with high growth potential a chance to break into higher-tier distribution channels. Beyond e-commerce support, participating businesses can be selected for TV and data home shopping broadcast support — a pathway to a larger retail network. This component is open to 70 companies chosen through an expert product review panel from among those already receiving e-commerce entry support.

Companies selected for this support gain access to home shopping channel listings and broadcast slots — channels that have historically been difficult to enter. TV home shopping runs through Public Home Shopping, while data home shopping runs through SK Stoa, Shopping NT and GS My Shop. The agency also provides broad marketing support, including broadcast listing fee subsidies and reduced home shopping commission rates, to help participating SMEs secure stable revenue.

To ease the financial burden on small businesses, the program offers broadcast listing fee support and reduced sales commission rates. Home shopping can rapidly build brand recognition and drive high-volume sales, but its high barriers to entry and cost burden have long kept SMEs at bay. The agency said its aim is to lower upfront costs so that quality products can reach consumers more easily.

Lee Tae-sik, CEO of the Korea SMEs and Startups Agency, said the core of the program is building an "integrated sales linkage" system spanning e-commerce through home shopping, overcoming the limitations of one-off sales support. "We will continue to provide full backing so that outstanding domestic small and medium-sized enterprises can grow beyond the marketing barriers they face," he said.

boo@heraldcorp.com