SMEs plays significant role in Korean Economy as they occupy 99.9% of total enterprises and 88.4% of total employees. However, SMEs faced difficult challenge in terms of financing, marketing etc. Although the Korean government implements a variety of tax incentives, financial supports and takes other measures to support small businesses, there remain many problems to be solved for the practicality of some policies.


This report classifies problem and alternatives of the government's policy for SMEs into six sectors- Tax, Finance, Marketing, Entrepreneurship, R&D and Human Resource


First, SMEs Act which defines direction and vision of SMEs support plan needs amendment since the act does not meet up changed environment to be caused by FTA and prosperity of venture companies. Second, Budget volume and performance of SMEs programs should be systematically evaluated in the budget process and the parliament's deliberation of budget. Third, government financial support fund should be distributed efficiently depending upon priority of Potential SMEs such as start-up business and companies with high technology. Finally, in order to make public institutions buy more SMEs' product than now, SMEs' public procurement system should be diversified and enlarged.