Stronger Corporate Support Through Higher Loan Limits and Inclusion of Facility Funds Compared to Last Year
Loan Limit Raised to 1.5 Billion Won and New Facility Fund Support Introduced... Targeting SMEs and Mid-Sized Companies in Pohang
Pohang City is expanding the implementation of the "2026 Regional Industrial Crisis Response Interest Subsidy Support Project" to stabilize the management of small and medium-sized enterprises (SMEs) and mid-sized companies within the Preemptive Industrial Crisis Response Area and to help the local economy recover.
This project provides government support for a portion of loan interest when companies in industrial crisis areas borrow funds from financial institutions for corporate operations and business activities. It is being promoted with the aim of alleviating companies' financial costs.
The support targets SMEs and mid-sized companies with business sites in Pohang City that are engaged in the main industry (primary metal manufacturing) or have business relationships with companies engaged in the main industry. When such companies obtain loans for management stabilization and facility investment through designated financial institutions, they can receive interest subsidy support.
This year, the loan limit per company has been increased from 1 billion won to 1.5 billion won, and the support, which had previously been limited to working capital, has been expanded to include facility funds.
Accordingly, it is expected that not only the financial burden for management stabilization funds such as raw material purchases, but also the financial burden arising from facility investments such as the introduction of production equipment and the construction and expansion of business sites, will be eased.
This project is a financial support policy for companies located in the Preemptive Industrial Crisis Response Area designated under the "Special Act on Regional Industrial Crisis Response and Local Economic Recovery." It is expected to provide substantial assistance in stabilizing management and restoring competitiveness for key local industries and related SMEs that are struggling due to factors such as the slowdown in the steel industry.
Pohang City plans to improve the liquidity of SMEs and mid-sized companies through interest subsidy support and to help ensure that continuous investment and business activities can be carried out even in times of crisis.
Lee Sangyeop, Director of the Job and Economy Bureau, said, "This year, we have strengthened support by expanding the loan limit and including facility funds," adding, "We hope that local SMEs and mid-sized companies in need of funds will actively utilize this project to help stabilize their management and secure corporate competitiveness."
Details such as application procedures can be found in the notices section on the Pohang City Hall website, and inquiries can be made to the Corporate Support Team of the Investment Enterprise Support Division of Pohang City or to Pohang Technopark, which is the receiving institution.
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