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2026-04-248 min read0

2026 Sobujang Special Act Amendment — Defense·Rare Earth Inclusion and SME R&D 21.6B Strategy

The January 2026 Sobujang Special Act amendment officially includes defense and rare earths. This post covers the MSS KRW 21.6B Technology Innovation Program supporting 200 companies and 5 practical strategies to boost selection rates.

KITIM Consulting Team

Background and Key Issues of the 2026 Sobujang Special Act Amendment

The amendment to the Special Act on Strengthening the Competitiveness of Materials, Components, and Equipment Industries and Supply Chain Stabilization (Sobujang Special Act), effective January 2026, marks a turning point in Korea's national supply chain strategy. Moving beyond its original focus on responding to Japan's export restrictions, the Act now officially includes defense industry components and critical minerals, including rare earths, significantly expanding the scope of Sobujang policy.

The amended law reorganizes core strategic Sobujang technologies into four pillars: (1) Market leadership (next-generation semiconductors and displays), (2) Transition response (EV and hydrogen mobility components), (3) Regulatory response (eco-friendly materials for EU CBAM and ESPR), and (4) Supply chain security (rare earths and defense-critical components). These four pillars will serve as evaluation criteria for all future Sobujang R&D support programs.

MSS Technology Innovation Program — 200 Companies, KRW 21.6 Billion

The Ministry of SMEs and Startups will invest a total of KRW 21.6 billion in the Sobujang track of the Technology Innovation Development Program in 2026, selecting 200 companies. The first round (March–April) will select 140 companies for KRW 16.8 billion, with the second round in the second half selecting 60 companies for KRW 4.8 billion.

  • Funding scale: Up to KRW 600 million over 2 years per company (KRW 300 million annual cap)
  • Eligibility: SMEs with annual revenue over KRW 2 billion, operating in core strategic technology fields
  • Technology areas: Semiconductors, displays, batteries, automotive, machinery/metals, electronics, basic chemicals, and bio — 8 major fields
  • Preferential scoring: Up to 5 bonus points for designation as Sobujang Top Company, Strong SME, Startup 100, or Root Company
  • Given the average competition ratio of 6.8:1 in the 2025 first round, early preparation is essential even for the second round.

    New Opportunities from Defense and Rare Earth Inclusion

    Defense component localization and rare earth supply chain security are the hottest R&D themes of 2026.

  • Defense component localization: In response to the era of USD 20 billion K-defense exports, new localization projects are emerging for cutting tools, special alloys, radar materials, and sensors
  • Rare earth alternatives and recycling: Priority support for alternative magnet materials replacing neodymium and dysprosium, and urban mining recycling of waste permanent magnets
  • AI materials data infrastructure: Joint initiative by MOTIE and MSIT to build a 15 million-entry materials database by 2030, aiming to accelerate AI-based new material development by 10x
  • SMEs can now access the Material Bank free of charge, enabling enterprise-level R&D with AI-driven material design and simulation capabilities previously limited to large corporations.

    5 Practical Keys to Boosting Selection Rates

    Sobujang R&D evaluation differs from general R&D. Based on field experience, these 5 factors determine selection outcomes.

  • Core strategic technology mapping: Precise code matching to MOTIE's 200 core Sobujang technology items is mandatory (formal review failure without match)
  • TRL-based proposal strategy: TRL 4–6 (lab/prototype) fits technology innovation tracks; TRL 7+ aligns with commercialization tracks
  • Supply chain contribution: 10 bonus points for presenting buyer LOIs or mass-production adoption roadmaps
  • Patent fast-track examination: Sobujang projects qualify for priority examination, reducing average review time to 2 months
  • Testbed and commercialization linkage: Additional points for utilizing Sobujang demonstration testbeds in Pohang, Gumi, and Changwon
  • KITIM Sobujang R&D Consulting Services

    KITIM is a specialized consulting firm that has supported over 150 companies with R&D project planning and proposal writing in the core Sobujang strategic technology fields. We provide end-to-end services from project planning → proposal writing → evaluation response → commercialization funding design. For the newly added defense and rare earth fields, our advisory team includes former evaluators from MOTIE and DAPA.

    The 2026 first-round application closes in late March, and completing a proposal from planning stage typically requires at least 6 weeks. To seize the opportunities created by the Sobujang Special Act amendment, you need to start preparing now. Contact KITIM for a free consultation to identify the most suitable project fit for your technology field.

    Sobujang Special ActDefense MaterialsRare EarthMaterials Parts EquipmentTech Innovation R&D
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