Korea Expands Social Media Marketing Support to 1,200 Small Firms

By Grace Kim

Korea will put 1,200 small businesses through a government-backed social media marketing program this year, up 60% from 750 firms in 2024. The Ministry of SMEs and Startups and the Korea SMEs and Startups Distribution Center announced the expansion on the 3rd, running the program through the end of the year.

The shift is as notable as the scale. Instead of one-off advertising subsidies, the program now aims to build marketing capability merchants can keep using after the government money stops. That means expert-designed ad campaigns, one-on-one consulting and, new this year, training in artificial intelligence tools.

The center's own numbers explain where the money goes. More than 90% of participating merchants last year preferred Meta's platforms, so advertising concentrates on Instagram and Facebook.

How does the program actually work?

It runs in three stages: diagnosis and consulting, targeted ad placement, then performance analysis and follow-up management.

Before any ad runs, a merchant sits down with an expert to analyze the strengths of their industry and products and to set an advertising strategy. Preliminary testing then identifies the ad version that draws the strongest consumer response, and placement follows the characteristics of each platform. When the campaign ends, each participant receives a performance analysis report.

Starting this year, the center adds AI training so merchants can continue marketing on their own once the program closes. In plain terms: the government wants to hand over the toolkit, not just the ad budget.

What can a merchant expect in returns?

One case gives a concrete answer. Coffee bean brand Beompyo Coffee Bean Factory drew 2,659 customers to its NAVER Smart Store while running Meta ads through the program. Those customers spent a combined 25.94 million won.

"Working with a marketing expert, we analyzed Smart Store customer data and were able to set targeting and an advertising strategy suited to the characteristics of new and repeat customers," said Yoon Ki-sun, head of Beompyo Coffee Bean Factory.

The numbers are modest in absolute terms, but the mechanics matter more: the brand used its own customer data to split targeting between new and returning buyers. That's the self-directed capability the program is designed to seed.

Why is Seoul moving beyond subsidies?

The distribution center frames the program as a way to narrow the information gap small business owners face as commerce shifts digital. Small merchants rarely have in-house marketers or media buyers, and ad platforms reward exactly that expertise.

"The social media marketing support program goes beyond simply injecting funds and provides a practical foundation for self-reliance, including detailed consulting," an official at the center said. "We will establish it as a leading model for building the competitiveness of small business owners in a sustainable way."

The center's bet is that consulting plus AI training outlasts a straight subsidy check. If the 60% expansion holds and merchants keep campaigning after exit, expect the program to become a template for other SME support schemes.