How to Apply for an SME Policy Fund Loan — KOSME Application Procedure, Companies Restricted from Loans and Business Plan Preparation

Procedure

1. 1. Check eligibility and the types of funds

   Small and medium enterprises under the Framework Act on Small and Medium Enterprises are eligible, and the funds are divided into Innovative Startup Commercialization, New Market Entry Support, New Growth Foundation, Turnaround Support, Emergency Management Stabilization and Value Chain Stabilization. Micro enterprises with fewer than 5 regular employees (fewer than 10 in mining, manufacturing, construction and transportation) are excluded in principle and can apply only when they fall under an exception such as manufacturing. Other micro enterprises should check the micro enterprise policy fund announcements of the Small Enterprise and Market Service.

2. 2. Check the grounds for loan restriction

   Loans are restricted for companies that have suspended or closed business, companies with tax arrears, companies with registered credit information such as delinquency or dishonored payment, companies in business types excluded from loans, and companies exceeding the loan-restriction debt ratio for their business type. A record within the most recent 3 years of using working capital for a purpose other than the intended one, or of applying by false or improper means, is also a ground for restriction. Companies in business for less than 7 years are an exception to the debt ratio restriction.

3. 3. Apply for the loan online

   In the online policy fund application on the KOSME website, select the competent regional headquarters or branch, check the application schedule and the funds available for application, then consent to the provision of information and submit the company information. A company that has entered false information in the application is restricted from applying for policy funds for 1 year from the date this is confirmed.

4. 4. Policy priority evaluation and document submission

   Whether a company is given an opportunity for review is decided by a policy priority evaluation that takes into account the budget and the volume of applications at each regional headquarters or branch. A company given an opportunity for review submits the loan application and supporting documents through the website by the set deadline.

5. 5. Corporate evaluation, loan decision and lending

   KOSME evaluates technology, business viability, future growth potential, management capability and the feasibility of the business plan through an on-site visit or remotely, and decides whether to grant the loan and its amount. Lending is divided into direct loans made by KOSME itself and agency loans made through banks, and after the loan is made, checks on the use of the funds follow.

Required documents

• Loan application and supporting documents for each type of fund (KOSME provides the submission list after an opportunity for review is given)
• Business plan (business description, plan for use of funds, sales and employment plans)
• Business registration certificate, and corporate register certificate (for corporations)
• Recent financial statements and proof of sales
• National tax and local tax payment certificates
• Facility funds: proof of required funds, such as quotations and contracts

Fees

Fees in the industry range from several hundred thousand won to several million won. We will advise you of the fee after a consultation, based on the type of fund and the scope of business plan preparation. The review and the loan decision are made by KOSME, so we do not guarantee approval or the amount.

See fees and official charges for this service →

Legal basis and review date

• Small and Medium Enterprises Promotion Act, Article 66
• Small and Medium Enterprises Promotion Act, Article 67
• Public Notice of the 2026 SME Policy Fund Loan Plan (Ministry of SMEs and Startups Public Notice No. 2025-649)
• Amended Notice of the 2026 SME Policy Fund Loan Plan (Ministry of SMEs and Startups Notice No. 2026-287)

Checked against the statutes on 2026-10-05

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

• The loan plan, interest rates and limits change every year. Check against the announcement for the year in which you apply and the notices of the competent branch.
• Using working capital for a purpose other than the one applied for may restrict loan applications for the following 3 years.

Frequently asked questions