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Korea SMEs and Startups Agency
The Korea SMEs and Startups Agency, known as KOSME, was established in 1979 as a non-profit government agency under what is now the Ministry of SMEs and...
Korea SMEs and Startups Agency
The Korea SMEs and Startups Agency, known as KOSME, was established in 1979 as a non-profit government agency under what is now the Ministry of SMEs and Startups. Its founding mandate was to correct a structural imbalance in the Korean economy, where large family-controlled conglomerates dominated credit channels, leaving small and medium enterprises with limited access to growth capital. Over four decades, KOSME evolved from a policy lender into a full-spectrum support platform combining financing, export acceleration, and startup incubation. KOSME deploys capital through several distinct tracks. It provides direct policy loans and credit guarantees to domestically focused SMEs, runs the Startup and Promotion Fund to seed early-stage technology ventures, and collaborates with Korea Venture Investment Corp on the Korea Fund of Funds — a multi-trillion-won mother fund that anchors domestic VC firms. The agency operates a network of Global Business Centers in Washington D.C. and Dubai, and K-Startup Centers in Seattle and Singapore, which place Korean startups inside foreign markets with subsidized office space, local mentorship, and warm introductions to regional investors (per the firm's official communications). Headquartered in Jinju-si, KOSME also runs a dedicated Training Institute in Ansan. The agency participates in cross-border SME policy development through the APEC SME Working Group and maintains membership in the Eureka Network, an intergovernmental R&D collaboration platform. In recent years, KOSME has intensified its focus on deep-tech and software startups, aligning its startup centers in North America and Southeast Asia to pull Korean companies into enterprise sales pipelines abroad. KOSME's structural fingerprint is its hybrid role as both policy implementer and direct market participant. Unlike a sovereign wealth fund that manages a discrete portfolio for financial return, KOSME's balance sheet is a rolling policy instrument — its loan books, guarantee portfolios, and fund commitments are recalibrated annually to match government economic strategy. That makes it a weather vane for Korea's SME industrial policy, but also means its investment pace and sector emphasis shift with each administration.
General information
Firm type
Government / Public Body
Year founded
1979
Location
Region
Asia
Country
South Korea
City
Jinju-si
Corporate office
Jinju-si, Gyeongsangnam-do, South Korea
Additional offices
Ansan, Gyeonggi-do, South Korea · Washington D.C., USA · Dubai, UAE · Seattle, WA, USA · Singapore
Principals
Kang Seok-jin
Chairman and President
Sector focus
Frequently asked questions
What is the relationship between KOSME and Korea Venture Investment Corp (KVIC)?
KOSME and KVIC are separate agencies under the Ministry of SMEs and Startups, but they collaborate closely on the Korea Fund of Funds, a government-anchored vehicle that invests in domestic venture capital firms. KVIC acts as the fund manager for the Korea Fund of Funds, while KOSME's policy lending and incubation programs feed the pipeline of companies those VC firms later back.
Does KOSME take equity positions in startups directly?
KOSME primarily provides policy loans and credit guarantees rather than direct equity investments. Its Startup and Promotion Fund and collaboration with the Korea Fund of Funds allow it to participate in the venture ecosystem indirectly by anchoring funds that then make equity investments. The K-Startup Centers in Seattle and Singapore offer in-kind support but do not typically take equity.
Which Korean government ministry oversees KOSME's budget and strategy?
The Ministry of SMEs and Startups, established as a standalone ministry in 2017, oversees KOSME's operations and sets its annual policy objectives. KOSME's lending volumes and fund commitments are tied to the ministry's five-year SME development plans, meaning the agency's capital deployment priorities shift when a new administration takes office.
How do K-Startup Centers select the companies they support abroad?
K-Startup Centers run competitive application cycles targeting Korean startups with a product or service ready for international expansion. Selected companies receive subsidized workspace, local legal and accounting support, and introductions to regional venture capital firms and enterprise clients. The Seattle center focuses on software and AI companies expanding into North America; the Singapore center targets Southeast Asian market entry.
What role does KOSME play in the APEC SME Working Group?
KOSME represents South Korea in APEC's SME Working Group, a policy forum where member economies coordinate on standards, financing models, and market-access programs for small businesses. Its participation signals that the agency's lending and incubation practices are designed to align with broader regional trade and regulatory goals, not solely domestic employment targets.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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