Pohang City to Provide Relief for SMEs... 150 Billion Won in Working Capital Support for 2026

Online Applications via G-Fund Accepted from January 8 Until Funds Are Exhausted
Abolishment of Three-Year Consecutive Support Limit, 4% Interest Subsidy on Loans

Good news, like a helping hand, has arrived for business owners in Pohang who have been losing sleep over the wave of high interest rates.

The city of Pohang will implement the 2026 Working Capital Support Project for Small and Medium-Sized Enterprises (SMEs) to help stabilize the management of local SMEs struggling with regional economic stagnation, high interest rates, and rising prices.

The SME Working Capital Interest Subsidy Program, with a total budget of 150 billion won, is a system that provides partial interest support (interest subsidy) for working capital loans to SMEs in the region. Through this initiative, the city aims to ease the financial burden on companies and create a stable business environment.

The program targets SMEs in 13 sectors, including manufacturing, construction, and venture businesses, that have business sites in Pohang. When a loan is executed, an annual interest subsidy rate of 4% will be applied. Each company can receive loan recommendations for up to 500 million won, depending on its sales. The subsidy period lasts for one year from the date the loan is executed.

This year, in particular, the city has abolished the previous “three consecutive years support limit,” improving the system so that companies with recurring temporary funding needs can receive working capital support flexibly according to their business conditions. This measure is intended not only for short-term support but also to ensure ongoing management stability for companies.

In light of the recent economic slowdown and changes in the steel industry environment, Pohang City has focused on alleviating the actual financial burden on local SMEs by maintaining the 4% interest subsidy rate for working capital loans.

Loan applications will be accepted online via the G-Fund system starting from January 8 until the funds are exhausted. New applicants should register as members and upload the required documents related to the working capital application.

Mayor Lee Kangdeok stated, "In a situation where domestic demand recovery is delayed and global economic uncertainty persists, it is more important than ever to ease the financial burden on local SMEs," adding, "We hope that this working capital support will not only stabilize the management of local SMEs facing financial difficulties but also serve as a foundation for their continued growth. We will continue to implement practical support policies that reflect the voices from the business field."

For more details, please refer to the notices section on the Pohang City website or contact the Corporate Support Team at the Investment Enterprise Support Division of Pohang City.