Politics · South Korea · 4 hrs ago
South Korea supply-chain fund gives 90.9% of support to large firms
South Korea’s supply-chain fund is meant to help domestic companies respond to global supply risks.
The fund’s support grew from 2.11 trillion won in 2024 to 8.11 trillion won in the first nine months of 2026.
Large companies received 90.9% of the support in that period, or 7.37 trillion won.
Small companies’ share fell from 3.6% in 2024 to 1.3% in January–September 2026.
Lawmakers have questioned whether so much public funding should go to large firms, which may be better able to attract private investment.
Democratic Party lawmaker Jeong Tae-ho called for reviewing the fund’s effects and improving support for small and midsize businesses.
South Korea’s Supply Chain Stabilization Fund directed 90.9% of its support to large firms through September 2026.
The fund provided 8.1121 trillion won in support during that period, including 7.3738 trillion won for large firms.
The share going to small businesses fell from 3.6% in 2024 to 1.3% in 2026.
Lawmaker Jeong Tae-ho called for changes to improve support for small and medium-sized firms.
A parliamentary report warned that expanding policy finance for large firms could displace private investment.
- Who
- South Korea’s Supply Chain Stabilization Fund supported domestic companies. Lawmaker Jeong Tae-ho called for changes to its support system.
- What
- Large firms received 90.9% of the fund’s support through September 2026, while the small-business share fell to 1.3%.
- When
- The figures cover January to September 2026. The article was published on October 13, 2026.
- Where
- South Korea.
- Why
- The fund supports domestic companies in response to global supply-chain risks. Jeong said support should help reduce supply-chain risks and expand domestic production.
This story does not have two clearly opposing sides.
The fund provided 2.1119 trillion won in support, of which 3.6% went to small businesses and 87.9% to large firms.
The fund provided 7.1329 trillion won in support, with 1.9% going to small businesses and 85.5% to large firms.
The fund provided 8.1121 trillion won, including 7.3738 trillion won for large firms; small businesses received 1.3% of support.
Jeong Tae-ho called for a review of support for small businesses and improvements to the fund’s support system.
- Total support, January–September 2026
- 8.1121 trillion won
- Support for large firms, January–September 2026
- 7.3738 trillion won
- Large firms’ share, January–September 2026
- 90.9%
- Small businesses’ share, January–September 2026
- 1.3%
- Total support, 2025
- 7.1329 trillion won
1 source
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What people are saying
As the scale of fund support expands, we must closely examine its policy effects, including whether it actually reduces supply-chain risks and expands domestic production.
We should review the declining share of support for small businesses each year and improve the support system so small and medium-sized firms can strengthen their ability to respond to supply-chain challenges.
Excessive expansion of policy funding for large firms, which have relatively easy access to private funding, could crowd out private capital in those industries.