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KRW 4.2 Trillion Fund Saves Jobs, Sparks Growth Concerns

10/11/2025

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Summary

Story summary

The KRW 4.2 trillion policy financing fund has helped 19,000 SMEs avoid closure and preserve more than 100,000 jobs, but analysts warn it may hinder growth.
The Ministry of SMEs and Startups (MSS) plans to shift to performance-linked financing to boost market vitality.
Global venture capital is AI-dominated, with half of funding directed to AI startups, risking reduced support for traditional sectors and prompting government diversification.

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Story summary

The KRW 4.2 trillion policy financing fund has helped 19,000 SMEs avoid closure and preserve more than 100,000 jobs, but analysts warn it may hinder growth.
The Ministry of SMEs and Startups (MSS) plans to shift to performance-linked financing to boost market vitality.
Global venture capital is AI-dominated, with half of funding directed to AI startups, risking reduced support for traditional sectors and prompting government diversification.