Three focus areas: semiconductors, AI data centers, physical AI

Government to strengthen support for SMEs entering large conglomerate supply chains

Fair-trade framework to cover ordering, production and payment

Council to link SMEs with large and mid-sized companies in the works

Minister of SMEs and Startups Lee So-young delivers opening remarks at the 2026 SME Leaders Forum, hosted by the Korea Federation of SMEs at Lotte Hotel Jeju on Tuesday. [Ministry of SMEs and Startups]
Minister of SMEs and Startups Lee So-young delivers opening remarks at the 2026 SME Leaders Forum, hosted by the Korea Federation of SMEs at Lotte Hotel Jeju on Tuesday. [Ministry of SMEs and Startups]

The government plans to expand opportunities for small and medium-sized enterprises to participate in three national mega-projects requiring more than 1,500 trillion won ($1.13 trillion) in investment, aiming to ensure that the growth benefits of the massive outlays reach not only large conglomerates but also SMEs, venture firms and regional economies.

The Ministry of SMEs and Startups said Wednesday it held a roundtable on spreading the benefits of the mega-projects to SMEs, chaired by Minister Lee So-young at the Korea Ratings Data auditorium in Yeouido, Seoul.

The three mega-projects are national-scale industrial and infrastructure initiatives centered on semiconductors, AI data centers and physical AI, with more than 1,500 trillion won to be invested in building an AI industry ecosystem and securing new growth engines.

"The mega-projects are a national growth strategy that will carry South Korea for the next 20 to 30 years," Lee said at the event. "The role and participation of small and medium-sized enterprises is critical to spreading the benefits across the industrial ecosystem."

The roundtable was organized to explore ways to channel the gains from large-scale national investment projects to SMEs and regional economies, and to hear directly from the SME sector.

About 20 participants attended, including representatives from nine SMEs, venture firms and startups in the semiconductor, AI data center and physical AI sectors, as well as officials from the Korea Venture Business Association, Inno-Biz Association, Main-Biz Association and Korea Startup Forum.

Participants included not only SMEs already working with large conglomerates that have announced major investment plans, but also companies seeking to enter supply chains for the first time. They discussed how to use the mega-projects as new growth opportunities, what government support they hoped to see, and how they wished to collaborate with large and mid-sized companies.

The ministry said it would build a tailored support framework, recognizing that existing conglomerate suppliers and companies seeking new supply-chain entry face different circumstances.

For existing suppliers, the ministry will help them capitalize on business opportunities arising from expanded investment. For new entrants, it will work to broaden their chances to collaborate with large and mid-sized companies.

"The challenges facing existing suppliers and companies hoping to enter for the first time are different, so we will put in place customized support," Lee said. "We will lay the groundwork to ensure that the entire process — from supply-chain entry through ordering, production and payment — is conducted fairly, and to promote growth together."

To that end, the ministry will begin forming a council to assess the needs of SMEs seeking to participate in the mega-projects and to explore ways to connect them with the anchor large and mid-sized companies leading the major investments.

The council is expected to serve as a cooperative channel linking SMEs with large and mid-sized companies and central and local governments. The aim is to create a foundation for SMEs to secure new business opportunities and share in the gains from large-scale industrial investment.

The key question is whether the massive investment plans will translate into actual orders and sales growth for SMEs. Even as large conglomerates ramp up spending in advanced industries such as semiconductors, AI data centers and physical AI, the growth benefits could remain concentrated among a handful of companies if SMEs fail to break into the supply chains. Follow-up government action — including identifying new partner companies and creating a fair trading environment — will be critical to widening SME participation.

"The Ministry of SMEs and Startups will continue to act as a connector among mega-project-related SMEs, large and mid-sized companies, and central and local governments through the SME council and other channels," Lee added. "We will keep pushing forward with measures to spread the benefits of the three mega-projects to small and medium-sized enterprises."


boo@heraldcorp.com