Donghae City to Provide 24 Billion Won in SME and Small Business Support Funds; Applications Open from the 12th

Donghae City Launches Loan Recommendation and Interest Subsidy Program
Support for Local SMEs and Small Business Owners
3?4% Interest Subsidy on Loans for Two Years

Donghae City in Gangwon Province will implement a loan recommendation and interest subsidy program for small and medium-sized enterprises (SMEs) and small business owners in 2026 to help stabilize their operations and revitalize the local economy.

A panoramic view of Donghae City Hall.

The city will begin accepting applications on January 12 and continue until the total loan recommendation limit of 24 billion won is exhausted. Depending on the type of business, recommended loan amounts will range from 30 million won to a maximum of 500 million won.

Companies wishing to receive loan recommendations and interest support must first visit a financial institution for a preliminary loan review. Afterward, they should prepare the required documents, including a business registration certificate, identification, national and local tax payment certificates, and documents verifying sales for the most recent year (for applications exceeding 30 million won), and then visit the Economic Affairs and Business Support Team on the 4th floor of Donghae City Hall’s main building to apply in person.

Companies selected for support will be able to receive loans from 15 financial institutions within the city (excluding post offices and the National Federation of Fisheries Cooperatives), and will receive a 3-4% interest subsidy for two years. Notably, for promising SMEs, the interest subsidy rate has been increased from the previous 3.5% to 4%, further easing the financial burden for growing businesses.

For more details regarding the program, contact the Economic Affairs and Business Support Team at Donghae City Hall or check the notices and announcements section on the Donghae City Hall website.

Since 1997, Donghae City has continuously operated the interest subsidy program. In 2025, the city recommended loans totaling 23 billion won to more than 550 companies and provided 1.225 billion won in interest subsidies.

Im Seongbin, Director of Economic Affairs, stated, "We are well aware of the challenges faced by small business owners due to the economic downturn. We hope this interest subsidy program will serve as a strong stepping stone for their recovery. We will provide prompt and seamless support to ensure it is a practical help for business stability."