Canadian Government Support Programs: Guide for Canadian Companies
# Canadian Government Support Programs for Entering Korea
Overview
Canadian companies expanding to Korea do not need to rely solely on Korean incentives. The Government of Canada operates a robust ecosystem of export support programs that can fund market research, cover trade show costs, provide export financing and insurance, and offer on-the-ground advisory services in Seoul. When combined with Korean incentives (see INCEN-06), these programs can cover a significant portion of your Korea market entry costs.
This guide covers the six most relevant Canadian government programs for companies entering the Korean market:
1. Trade Commissioner Service (TCS) - Free advisory and introductions in Seoul 2. CanExport SME - Up to $50,000 for international business development 3. CanExport Innovation - Up to $75,000 for technology commercialization abroad 4. Export Development Canada (EDC) - Financing, insurance, and market intelligence 5. Business Development Bank of Canada (BDC) - Advisory and financing 6. NRC IRAP - R&D funding and international collaboration support
Each program has distinct eligibility requirements, funding amounts, and application processes. Understanding these differences allows you to target the right programs and avoid wasting time on applications where you do not qualify.
Canada-Korea Trade Context
South Korea was Canada's eighth-largest trading partner in 2025, with Canadian companies exporting $7.1 billion in merchandise. The Canada-Korea Free Trade Agreement (CKFTA), in force since 2015, has eliminated tariffs on most goods and provides preferential treatment for Canadian service providers. A Team Canada Trade Mission to Korea is scheduled for April 2026, demonstrating continued government prioritization of this market.
Trade Commissioner Service (TCS) - Seoul Office
Program Description
The Trade Commissioner Service is Canada's network of trade professionals in over 160 cities worldwide. The Seoul office provides free, personalized advisory services to Canadian companies exploring or expanding in the Korean market. TCS trade commissioners are Canadian government employees with deep knowledge of the Korean business environment and extensive local networks.
Eligibility
Benefits
| Service | Description | Cost | |---|---|---| | Market intelligence | Sector-specific analysis of Korean market opportunities, competitive landscape, and regulatory requirements | Free | | Qualified contact introductions | Introductions to vetted Korean distributors, partners, agents, and customers | Free | | Visit coordination | Help planning business trips to Korea, including meeting schedules and logistics | Free | | Problem resolution | Assistance navigating Korean regulatory barriers, customs issues, or business disputes | Free | | Event access | Invitations to Canadian trade events, networking receptions, and trade missions in Korea | Free (some events may have participation fees) | | Program referrals | Guidance on which Canadian and Korean incentive programs best fit your situation | Free |
Application Process
1. Register on the TCS website (tradecommissioner.gc.ca) 2. Create a company profile outlining your products/services and Korea objectives 3. A trade commissioner will be assigned to your file based on your sector 4. Engage directly with your assigned trade commissioner via email, phone, or video 5. Visit Seoul and meet your trade commissioner in person for maximum value
Contact
Success Tips
CanExport SME
Program Description
CanExport SME is Canada's primary funding program for small and medium-sized businesses pursuing international market development. The program reimburses eligible costs associated with developing new export markets, including Korea. It is delivered by Global Affairs Canada in partnership with the Trade Commissioner Service.
Eligibility (2026-2027 Fiscal Year)
| Requirement | Details | |---|---| | Business type | For-profit Canadian company | | Employees | Minimum 3 full-time employees (increased from 1 FTE in previous years) | | Revenue | Between $300,000 and $100 million in annual revenue declared in Canada (increased from $100,000 minimum) | | Market | Must be targeting a new export market or new sector in an existing market | | Registration | Must be incorporated or registered in Canada |
Important change for 2026-2027: The minimum revenue threshold increased significantly from $100,000 to $300,000, and the minimum employee threshold increased from 1 FTE to 3 full-time employees. Companies below these thresholds no longer qualify.
Benefits
| Item | Details | |---|---| | Maximum funding per project | $50,000 | | Maximum per fiscal year (all CanExport programs) | $99,999 | | Cost-sharing ratio | Government reimburses eligible costs (varies by activity) | | Total program budget (2026-2027) | Approximately $31 million CAD |
Eligible expenses include:
Expenses NOT eligible:
Application Process
1. Register: Create an account on the CanExport portal (available through tradecommissioner.gc.ca) 2. Prepare: Gather required documents (see Required Documents section below) 3. Apply: Submit application during the open intake window 4. Wait: Applications are reviewed on a first-come, first-served basis. Decisions typically within 4-6 weeks 5. Execute: Undertake approved activities within the project period 6. Report: Submit final report with receipts and proof of activities for reimbursement
Timeline (2026-2027)
| Milestone | Date | |---|---| | Applications open | February 4, 2026 (12:00 PM ET) | | Application deadline | May 29, 2026 (12:00 PM ET) | | Project period | Up to 12 months from approval | | Final report deadline | Within 60 days of project end |
Required Documents
1. Completed online application form 2. Most recent corporate tax return or financial statements 3. Business plan or export strategy for Korea 4. Detailed budget for proposed activities 5. Proof of Canadian incorporation/registration 6. Quote or evidence of proposed expenses (trade show booth contract, market research proposal, etc.)
CanExport Innovation
Program Description
CanExport Innovation supports Canadian organizations that have developed innovative technologies and want to commercialize them in international markets. Unlike CanExport SME, which focuses on general export development, CanExport Innovation targets technology transfer, licensing, and R&D partnerships abroad.
Eligibility
| Requirement | Details | |---|---| | Eligible applicants | SMEs (fewer than 500 FTE employees), academic institutions, non-government research centers | | Technology readiness | Must have a prototype (Technology Readiness Level 4 or higher) | | IP ownership | Must own, co-own, or have decision-making authority over the IP | | Commercialization timeline | Intent to commercially launch within 5 years | | Revenue cap | Less than $100 million annual revenue (for SMEs) |
Benefits
| Item | Details | |---|---| | Maximum funding per project | Up to $75,000 | | Cost-sharing ratio | Up to 75% of eligible costs | | Maximum per 12-month period | $100,000 | | Applicant contribution | Minimum 25% (cash only; in-kind not permitted) |
Eligible expenses include:
Application Process
1. Confirm technology readiness (TRL 4+) and IP ownership 2. Identify specific Korean partners or opportunities for technology commercialization 3. Submit application through the CanExport Innovation portal 4. Applications reviewed on an ongoing basis 5. Execute approved activities and submit final report with documentation
Korean Market Applications
CanExport Innovation is particularly valuable for Canadian companies that:
Export Development Canada (EDC)
Program Description
Export Development Canada is Canada's export credit agency, providing financing, insurance, and market intelligence to help Canadian companies compete internationally. EDC opened a dedicated representation in Seoul, reflecting Korea's importance as an export market.
Eligibility
Benefits
| Product/Service | Description | Typical Terms | |---|---|---| | Export credit insurance | Protection against non-payment by Korean buyers (commercial and political risk) | Premiums based on risk assessment | | Accounts receivable insurance | Coverage for Korean receivables | Up to 90% of invoice value | | Performance security guarantee | Guarantee to Korean buyers for contract performance | Supports bonding requirements | | Direct loans | Financing for Canadian exporters or their Korean buyers | Competitive rates, terms based on transaction | | Foreign buyer financing | Loans to Korean companies purchasing Canadian goods/services | Enables larger deals by financing the buyer | | Working capital solutions | Financing against export contracts and receivables | Supports cash flow during export execution | | Market intelligence | Country risk assessments, sector analysis, economic forecasts | Free (through EDC.ca) | | Partnerships | EDC maintains a partnership with Korea's K-sure (Korea Trade Insurance Corporation) for bilateral trade facilitation | Streamlined processes for Canada-Korea transactions |
Application Process
1. Visit edc.ca and explore available products 2. Contact EDC directly or through your commercial bank (many EDC products are delivered through banks) 3. Provide transaction details (buyer, product, value, terms) 4. EDC assesses risk and provides a quote 5. Finalize insurance or financing arrangement
Key Korean Market Offerings
EDC highlights several sectors of significant potential in Korea:
EDC Seoul Office
EDC's Seoul representation provides Canadian companies with:
Business Development Bank of Canada (BDC)
Program Description
BDC is Canada's bank for entrepreneurs, providing financing and advisory services to Canadian SMEs. While BDC does not have a physical presence in Korea, its services can support Korean market entry from the Canadian side.
Eligibility
Benefits
| Product/Service | Description | Typical Terms | |---|---|---| | Business loans | Term loans for expansion, including international market entry | $25,000 to $100 million; competitive rates | | Working capital financing | Lines of credit and revolving facilities | Based on company financials | | Growth capital | Subordinated financing for high-growth companies | Patient capital with flexible terms | | Advisory services | Strategic consulting on growth, operations, technology | Fee-based; some subsidized programs | | NRC IRAP partnership | Cross-referral program for innovative tech SMEs | Access to combined resources |
Application Process
1. Contact BDC through bdc.ca or call 1-888-INFO-BDC 2. Meet with a BDC advisor to discuss your financing needs 3. Provide business plan, financial statements, and export strategy 4. BDC assesses your application and provides terms 5. Finalize financing and draw funds as needed
Relevance to Korean Market Entry
BDC financing can fund:
NRC Industrial Research Assistance Program (IRAP)
Program Description
The National Research Council's Industrial Research Assistance Program (NRC IRAP) is Canada's premier innovation support program for technology SMEs. IRAP provides advisory services, financial support, and international collaboration opportunities that can directly support Korean market entry.
Eligibility
| Requirement | Details | |---|---| | Business type | Incorporated, for-profit Canadian SME | | Employees | Fewer than 500 FTE employees | | Focus | Technology innovation and commercialization | | Revenue | No specific minimum, but company must be actively generating or seeking revenue |
Benefits
| Service | Description | |---|---| | Industrial Technology Advisors (ITAs) | Dedicated advisors providing technical and business guidance from concept to commercialization | | Financial support | Non-repayable contributions for R&D projects (amounts vary, typically $50,000-$500,000) | | International collaboration | Funding for joint R&D projects with international partners, including Korean institutions | | CanExport partnership | IRAP works with CanExport to provide combined funding for R&D and export development | | BDC cross-referrals | Partnership with BDC for combined innovation and financing support | | Youth employment | Funding for hiring recent graduates for innovation projects |
International Collaboration
NRC IRAP specifically supports international R&D partnerships. For Korean market entry, this means:
Application Process
1. Contact your regional IRAP office (nrc.canada.ca) 2. An Industrial Technology Advisor (ITA) will be assigned to your company 3. Work with your ITA to identify funding opportunities and structure your project 4. Submit a project proposal through your ITA 5. IRAP reviews and approves projects (typically 4-8 weeks) 6. Execute the project with milestone reporting 7. Submit claims for reimbursement of eligible costs
Relevance to Korean Market Entry
IRAP is especially valuable for Canadian tech companies that need to:
Eligibility Summary
| Program | Min Revenue | Min Employees | Funding Type | Max Amount | Time to Access | |---|---|---|---|---|---| | TCS Seoul | None | None | Free advisory | N/A (free services) | 1-2 weeks | | CanExport SME | $300,000 | 3 FTE | Reimbursement | $50,000/project | 4-8 weeks | | CanExport Innovation | None (for academics) / varies | None specified | 75% cost-share | $75,000/project | 4-8 weeks | | EDC | None (varies by product) | None | Insurance/loans | Transaction-based | 2-4 weeks | | BDC | Varies | None | Loans/advisory | Up to $100M | 2-6 weeks | | NRC IRAP | None | <500 FTE | Non-repayable contribution | $50K-$500K | 4-8 weeks |
Benefits
| Program | Cash Funding | Advisory | Market Intel | Financing | Insurance | Korean Connections | |---|---|---|---|---|---|---| | TCS Seoul | No | Yes | Yes | No | No | Yes (strong) | | CanExport SME | Yes | No | No | No | No | Indirect | | CanExport Innovation | Yes | No | No | No | No | Indirect | | EDC | No | Yes | Yes | Yes | Yes | Yes (Seoul office) | | BDC | No | Yes | Limited | Yes | No | No | | NRC IRAP | Yes | Yes | Limited | No | No | Limited |
Application Process
Step 1: Start with TCS Seoul (Free, Immediate Value)
Register with the Trade Commissioner Service and connect with the Seoul office. This is free, provides immediate access to Korean market intelligence, and the trade commissioner can advise on which other programs best fit your situation.
Step 2: Apply to CanExport SME (If You Meet Revenue/Employee Thresholds)
If your company has $300,000+ in revenue and 3+ full-time employees, apply to CanExport SME during the February-May application window. Use the funding to:
Step 3: Apply to CanExport Innovation (If You Have Patented Technology)
If you own IP at TRL 4+ and want to license or commercialize technology in Korea, apply to CanExport Innovation for additional funding (up to $75,000).
Step 4: Engage EDC (If You Have Korean Sales or Contracts)
Once you have Korean customers or contracts, contact EDC for:
Step 5: Explore BDC Financing (If You Need Capital)
If you need working capital or growth financing to support Korean expansion, apply to BDC. Their patient capital approach is well-suited to the longer timelines of international market development.
Step 6: Engage NRC IRAP (If You Are a Tech SME)
If you are developing technology that needs adaptation for the Korean market or want to pursue joint R&D with Korean partners, contact NRC IRAP for advisory support and R&D funding.
Timeline and Cost
| Program | Application Time | Decision Time | Project Duration | Total Timeline | |---|---|---|---|---| | TCS Seoul | 1 day (registration) | Immediate | Ongoing | 1-2 weeks to first meeting | | CanExport SME | 2-4 weeks (preparation) | 4-6 weeks | Up to 12 months | 3-4 months to first reimbursement | | CanExport Innovation | 2-4 weeks | 4-8 weeks | Up to 12 months | 3-5 months to first reimbursement | | EDC | 1-2 weeks | 2-4 weeks | Transaction-based | 1-2 months to coverage | | BDC | 2-4 weeks | 2-6 weeks | Loan term (1-10 years) | 2-3 months to disbursement | | NRC IRAP | 2-4 weeks | 4-8 weeks | 6-18 months | 3-4 months to first payment |
Cost to apply: All programs are free to apply. Some (BDC, EDC) involve standard financial product fees. CanExport programs require the applicant to fund their share of costs upfront and be reimbursed after the project.
Required Documents
Common across most programs: 1. Proof of Canadian incorporation/registration 2. Corporate tax return or audited financial statements (last 1-3 years) 3. Business plan or export strategy 4. Project budget with cost estimates
CanExport SME specific: 5. Evidence of revenue ($300,000+ for 2026-2027) 6. Proof of 3+ full-time employees 7. Detailed activity plan for Korea 8. Supporting quotes or contracts for proposed expenses
CanExport Innovation specific: 5. Proof of IP ownership or co-ownership 6. Technology readiness evidence (prototype, test results) 7. Technology commercialization plan for Korea
EDC specific: 5. Details of the Korean transaction (buyer, amount, terms) 6. Korean buyer financial information (for credit insurance) 7. Export contract or purchase order
NRC IRAP specific: 5. Technical project description 6. R&D budget breakdown 7. Team qualifications and roles 8. International collaboration details (if applicable)
Success Tips
1. Apply to CanExport SME first -- it is the most accessible. If you meet the $300,000 revenue and 3 employee thresholds, this program offers the quickest path to $50,000 in market development funding. Use it to fund your first Korean trip, trade show participation, and initial market research.
2. Coordinate TCS and CanExport. Your trade commissioner can help you identify the most impactful activities to include in your CanExport application. They know which Korean trade shows matter, which market research firms are reliable, and which industry events attract decision-makers.
3. Apply early in the CanExport cycle. Applications are reviewed first-come, first-served, and funding is limited. The 2026-2027 intake opens February 4. Having your application ready to submit on opening day maximizes your chances.
4. Do not overlook EDC's buyer financing. One of the most powerful but underused tools for Korean market entry is EDC's foreign buyer financing. If a Korean company wants to buy from you but needs financing, EDC can provide the loan directly to the Korean buyer. This turns a financing barrier into a competitive advantage.
5. Stack CanExport SME and CanExport Innovation. These are separate programs with separate funding caps. A company with qualifying technology can receive up to $50,000 from CanExport SME and up to $75,000 from CanExport Innovation in the same fiscal year (subject to the $99,999 total CanExport cap per fiscal year).
6. Use NRC IRAP for technology adaptation. If your product needs modification for the Korean market (different standards, integration requirements, language localization of software), IRAP can fund the R&D component of this adaptation.
7. Attend the April 2026 Team Canada Trade Mission to Korea. The Trade Commissioner Service is organizing a Team Canada Trade Mission to the Republic of Korea in April 2026. This is a high-profile delegation with direct access to Korean government officials and business leaders.
8. Keep receipts and documentation from day one. All reimbursement-based programs (CanExport, IRAP) require detailed documentation. Establish a filing system before you start spending.
Rise Partners Can Help
Rise Holdings helps Canadian companies navigate and maximize Canadian government support programs:
Contact Rise Holdings for a complimentary Canadian programs assessment.