Gangwon Province Ushers in the ‘1 Trillion Won Era’ for SME Promotion Fund… Loan Limit Raised to 5 Billion Won per Company

Gangwon Special Self-Governing Province has finalized its 2026 operational plan for the Small and Medium Enterprise (SME) Promotion Fund, totaling 400 billion won, to support the management stability of local SMEs and revitalize the regional economy.

A view of Gangwon Provincial Government Building. Provided by Gangwon Provincial Government

Starting this year, the total loan limit per company will be increased from 4 billion won to 5 billion won. The management stabilization fund for general companies will be raised from 800 million won to 1 billion won, and for centennial and promising SMEs, the maximum support will be adjusted to up to 2 billion won.

Preferential support for companies in border areas will also be strengthened. The eligible regions will be expanded to include Chuncheon and Sokcho, and interest support of 2-3% will be provided within a maximum limit of 1.6 billion won. Additionally, the province plans to gradually expand the support limits over the coming years.

Furthermore, to foster a venture investment ecosystem that will drive Gangwon’s future industries, a new working capital support program will be established for companies that have received investments from the ‘Gangwon-type Strategic Industry Investment Fund’ sub-funds, offering 2.5% interest support.

Financial support will also be expanded to proactively respond to the rapidly changing economic environment. The size of the special purpose fund with a fixed interest rate of 1.5% will be increased from 25 billion won to 30 billion won, and a new 7 billion won fund will be created to support companies affected by customs duties, thereby strengthening their ability to manage export and import risks. In addition, the eligibility for industrial and agro-industrial complex support funds will be expanded from ‘companies scheduled to move in and early-stage companies (within one year)’ to include ‘already established companies,’ actively responding to on-site demand.

Along with these measures, a separate reserve fund of 5 billion won will be created to establish a rapid financial response system in the event of large-scale economic crises such as COVID-19 or major wildfires.

As of 2025, a total of 1,831 companies in the province are receiving support from the SME Promotion Fund, with the remaining loan balance reaching 998.4 billion won. The average support amount per company is approximately 540 million won, and the scale of fund operations is expanding each year. Considering this trend, the province expects that the total SME Promotion Fund support will surpass 1 trillion won for the first time this year, which is anticipated to serve as a robust financial safety net for local businesses.

Kim Manho, Director of the Economic Bureau of Gangwon Special Self-Governing Province, stated, “Through this operational plan, we have established a stronger and more comprehensive financial support system for SMEs,” adding, “We will maximize the effectiveness of financial support by making timely adjustments to swiftly reflect rapidly changing economic conditions.”