2026 Youth Startup Grants: Programs, Eligibility, and Applications

2026 Korea youth startup grants and application guide

If you are a young person preparing to start a business, these are government-supported projects that you would not want to miss.In 2026, the budget to support start-ups and small business owners will be the largest ever, increasing the scale of existing businesses and partially changing the support structure.

In addition to representative businesses, we have also summarized benefits that vary depending on the region.

Startup support in 2026, what will change?

The main trend of the 2026 integrated notice is that more emphasis is placed on supporting the growth of early-stage and take-off companies that are already operating a business, rather than expanding new startups.While the budget for existing projects such as the initial startup package, startup leap package, and youth startup academy increased, the proportion of some new startup-oriented projects decreased.

Additionally, the scope of support has been expanded.In the meantime, support was often provided only up to the prototype (mock-up) stage, but starting in 2026, businesses with expanded support structures have emerged to include mold production, initial mass production, and testing and certification, all the way to actual product launch.

Representative start-up support funds – a step-by-step look

1. Pre-startup package (idea stage)

Target: Prospective entrepreneurs without a business registration certificate and without corporate representation rightsSupport details: commercialization funds (average approximately 40 million won), entrepreneurship education, mentoringCharacteristics: Often operated on a university/region basis, the host organization and recruitment track may vary depending on the university or region of residence.As this is a highly competitive business, the completeness of the business plan is a key factor in determining success.

2. Youth Entrepreneurship Academy (representative program for early-stage young entrepreneurs)

Target audience: Under 39 years of age, business representative within 3 years of starting a businessSupport details: Project cost up to KRW 100 million (within 70% of total project cost), startup preparation space, startup education and coaching, and technical supportSelection size: 850 people in total — 330 global, 310 local, 140 investment typeRecruitment schedule (example): Project announcement (January) → Application/reception (January-February) → Evaluation/announcement (February-March) → Program progress (March-)In particular, since the regional-specific track separately selects young people who start businesses in rural areas rather than the metropolitan area, local entrepreneurs may have an advantage in terms of competition.3. Initial Startup Package · Startup Leap Package (if already running a business)Funding and infrastructure support that goes beyond prototypes to product launchAs the budget expands in 2026, the scope of support for growth-stage companies expands.

Suitable for young entrepreneurs who already have initial sales or are well on their way to starting their business.

Youth Startup Tax Reduction System

This is a system that reduces the tax burden in the early stages of starting a business, and if you meet the requirements, you can receive tax relief for up to 5 years.⚠️ Change in 2026: The tax reduction rate has been revised to vary depending on the region of business start-up.In other words, the amount of tax benefits you can receive may vary depending on where you start your business, so it is a good idea to check the difference in tax reduction rates in advance before deciding on a business location.

Things to take care of by region

Local governments’ own start-up support projects: In addition to the government’s large-scale projects, each metropolitan and basic local government often operates separate youth start-up subsidies, rent support, and start-up space provision projects.Regional-specific track: Projects that have a separate track for selecting local youth, such as the Youth Entrepreneurship Academy, may have lower competition compared to the metropolitan area.

Differential tax reduction rates: As explained earlier, tax benefits vary depending on the region where you start your business, so if you plan to relocate, you must compare regional conditions.Since the types and conditions of businesses operated in each region are very diverse and change frequently, rather than listing all individual businesses, we recommend that you check the comprehensive notices on K-Startup (k-startup.go.kr) and the Startup Support Center/Economic Promotion Agency website in your (planned) region of residence.

How to apply and contact information

K-Startup (k-startup.go.kr): Check and apply for government start-up support project integrated noticeCorporate website (bizinfo.go.kr): Check detailed announcements for each businessSmall and Medium Business Integrated Call Center: 1357 without area codeEach project has a set application/reception period and sometimes revised notices are issued, so be sure to check the latest version of the notice.

Finishing Tips

If you have not yet registered your business, consider the Preliminary Startup Package, and if you have already started a business within 3 years, consider the Youth Startup Academy first.If you are planning to start a business in a local area, you can find a more advantageous combination by comparing regional specialized tracks, the local government’s own business, and tax reduction rates.

The more competitive the business, the more important the completeness of the business plan is, so it is also worth considering a strategy of applying to multiple businesses at the same time.This article has been written for general information purposes.

Qualification requirements, support amounts, and schedules for each business may change every year, so please be sure to check the latest announcements through K-Startup (k-startup.go.kr) or the Small and Medium Business Integrated Call Center (1357) before applying.