Korea Local Finance Association Expands 2026 Local Finance Support Fund to 212 Billion Won

Strengthening Support for Local Governments through Expanded 2026 Local Finance Support and Special Disaster Relief Funds
Minister of the Interior and Safety Yoon Hojoong Calls for "Proactive Expansion of Mutual Aid Coverage and Strict Internal Controls to Build Trust"

The Korea Local Finance Association (Chairman Jeong Seonyong, hereinafter referred to as the Association) presented last year's key achievements and this year's priority initiatives at the "2026 Ministry of the Interior and Safety Affiliated Agencies Work Report" held at the Government Seoul Office Building on the 14th.

The Korea Local Finance Association (Chairman Jeong Seonyong) announced last year's key achievements and this year's priority tasks at the "2026 Ministry of the Interior and Safety Affiliated Agencies Work Report" held at the Government Seoul Office Building on the 14th. Provided by the Korea Local Finance Association

The meeting was attended by Minister of the Interior and Safety Yoon Hojoong, Chairman Jeong Seonyong of the Association, and executives and staff from four mutual aid and fiscal policy institutions under the Ministry of the Interior and Safety. They discussed this year's main work plans and strategies for implementing national policy tasks.

The Association reported its plans for the year, including: ▲expanding mutual aid and member support projects; ▲strengthening its role as a local finance specialist institution; and ▲broadening financial support for small and medium-sized enterprises in the outdoor advertising sector.

The Association plans to introduce new mutual aid projects tailored to local government needs and to increase the scale of local finance support funds and special disaster relief funds, thereby contributing to the soundness of local government finances. The budget for local finance support funds, which provides low-interest loans to local governments, has been set at 212 billion won, an increase of 12 billion won from the previous year.

In addition, the single payment limit for special disaster relief funds, which are provided for the prompt recovery of areas declared special disaster zones, will be raised to 150 million won and will be allocated differentially to regions experiencing population decline.

Furthermore, the special credit guarantee program for small and medium-sized enterprises in the outdoor advertising sector will be expanded nationwide. The Association will support guarantee fees and offer interest rate reduction benefits.

Chairman Jeong Seonyong stated, "As a specialized institution for local finance that strengthens disaster safety nets for local governments and supports balanced regional development, we will continue to fulfill our responsibilities in line with government policies in 2026."

Minister of the Interior and Safety Yoon Hojoong emphasized, "In response to the rapidly increasing risk factors such as climate change and cyber incidents, the Association should proactively expand the scope and coverage of its mutual aid programs," and added, "We will also focus on preventing conflicts of interest through strict internal controls in the management of mutual aid reserve fund assets."

Meanwhile, the Korea Local Finance Association is the only public interest corporation in Korea established to support sound fiscal management and development of local governments. It has over 420 member institutions and organizations, including all 243 local governments nationwide. Based on the spirit of mutual aid, the Association carries out a variety of projects, including mutual aid programs, local finance support projects, and regional vitality support projects.