Ministry of Trade Industry and Resources

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it will provide KRW 47.1 billion in government funding each year for the next three years, starting in 2026, to help distribution companies expand overseas. The program will support small and medium-sized consumer goods companies in entering overseas markets alongside distribution companies, with a focus on overseas distribution hubs. It will also scale up cross-border e-commerce as a new driver for expanding exports of K-consumer goods, drawing on the Korean Wave and growing online transactions. 

Distribution companies face constraints from high initial capital outlays and operational burdens when expanding overseas, and online distribution systems that meet foreign consumers’ demand for cross-border purchases of Korean products remain limited. At the same time, demand for K-consumer goods is rising, but access for overseas consumers remains limited. Small and medium-sized consumer goods companies also face difficulties expanding overseas on their own due to burdens across the export process, including customs clearance, certification, and logistics.

Starting in 2026, MOTIR will select eight distribution companies and five cross-border e-commerce companies each year for three years and provide tailored support for overseas market research, marketing, and logistics. It will also encourage distribution companies to pursue joint overseas expansion with small and medium-sized consumer goods companies, fostering mutually beneficial growth.

With cross-border e-commerce up 143 percent—from USD 1.2 billion in 2020 to USD 2.9 billion in 2024—MOTIR will support the localization of domestic cross-border e-commerce platforms, turning them into global marketplaces that are highly accessible to overseas consumers.

MOTIR stated it would review the program’s performance each year and use the findings to refine the program, thereby promoting mutual growth between K-consumer goods manufacturers and distribution companies and expanding exports through new channels.

MOTIR will focus its policy efforts on building a sustainable foundation for K-consumer goods exports and enabling the distribution industry to serve as a new export infrastructure under the program.

Companies wishing to participate in the support program may apply through the Korea Trade-Investment Promotion Agency (KOTRA) website (www.kotra.or.kr) by February 25, 2026.