Overview of the 2026 Climate Disclosure & Supply Chain Due Diligence Support Program
With the EU Corporate Sustainability Due Diligence Directive (CSDDD) set to take effect in July 2028, Korean SMEs supplying products to European markets will face direct compliance obligations. In response, Korea's Ministry of SMEs and Startups (MSS) and the Korea SMEs and Startups Agency (KOSME) are offering the Climate Disclosure & Supply Chain Due Diligence Readiness Program to help small and medium enterprises prepare proactively.
While the 2026 application round closed in March, understanding the program structure is essential for potential supplementary rounds later this year and for preparing next year's applications. This year's budget expanded approximately 40% year-over-year to KRW 32 billion, signaling the government's strong commitment to ESG supply chain readiness.
Support Types: In-Depth Assessment vs Advanced Enhancement
Key Innovation: The New Consortium Application Model
The most significant change in 2026 is the introduction of the consortium application model. Previously, SMEs had to apply individually. Now, anchor companies, their SME suppliers, and consulting firms can participate as a unified group.
How the Consortium Works
Individual vs Consortium Applications
Industries with high export exposure—automotive parts, electronics and semiconductors, textiles and apparel—are natural fits for consortium formation, as major OEMs in these sectors are already intensifying supplier ESG evaluations.
Detailed Support by Assessment Level
Level 3–4: Building Foundational Systems
Level 1–2: Global Compliance Enhancement
Companies can check their current ESG level through the ESG Integrated Platform (esg.kosmes.or.kr) self-assessment tool, which also serves as a mandatory document for program applications.
Three Steps SMEs Should Take Now
With roughly two years until CSDDD enforcement, companies that have not yet begun ESG preparations should prioritize these three actions.
1. Establish GHG Emissions Data Collection and Management
2. Conduct a Supply Chain ESG Risk Pre-Assessment
3. Develop a Strategic Consulting Partnership
In government support programs, the choice of consulting firm often determines project success. We recommend identifying experienced ESG supply chain due diligence consultants early and commissioning preliminary assessments and roadmap development ahead of supplementary rounds or the 2027 program cycle.
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KITIM (Korea Institute of Technology Innovation Management) provides end-to-end support for SME ESG strategy development, government program applications, and consortium formation. If your company needs to prepare for climate disclosure and supply chain due diligence requirements, [contact us](/contact) for a complimentary preliminary consultation.