Pohang City Designated as Special Support Area for SMEs for 2 More Years... Catalyst for Overcoming Steel Industry Crisis

Extension of Special Support Area for SMEs in Five Steel-Related Zones
Support for Resident Companies through Restricted Competitive Bidding, Negotiated Contracts, R&D, and Technology Development

Pohang City has been designated for a two-year extension as a Special Support Area for Small and Medium Enterprises (SMEs) by the Ministry of SMEs and Startups.

The Special Support Area for SMEs is a region designated to provide rapid business normalization support for SME-dense areas such as industrial complexes and industrial zones facing management crises.

The newly designated areas include Pohang Steel Management Complex Zones 1, 2, 3, and 4, as well as the Jenae-ri industrial area in Daesong-myeon, totaling five regions. These areas were initially designated as Special Support Areas for SMEs following damage caused by Typhoon Hinnamnor in 2023, with the designation period set to expire on the 25th of this month.

Many resident companies in these areas are related to the steel industry and have been experiencing severe management difficulties amid the global steel market downturn.

In response, Pohang City analyzed conditions such as production performance and worsening employment situations to overcome the steel industry crisis, and engaged in continuous consultations with the Ministry of SMEs and Startups and Gyeongbuk Province. After on-site inspections and review committee evaluations, the two-year extension of the Special Support Area for SMEs was finally approved.

During the on-site inspection by the Ministry of SMEs and Startups’ Corporate Environment Survey Team last December, Mayor Lee Kang-deok of Pohang personally conveyed the city’s difficult economic situation to the review committee, earning deep sympathy.

With this designation, existing resident companies and newly entering SMEs will be able to participate in public bids through restricted competitive bidding and negotiated contracts using goods they directly produce for the next two years. They will also systematically receive various support such as emergency management stabilization funds, research and development, consulting, and sales assistance from the Ministry of SMEs and Startups.

Mayor Lee Kang-deok stated, “This extension of the Special Support Area for SMEs is expected to greatly help stabilize the management of SMEs facing severe crises amid the global steel industry downturn,” and added, “We will continue to discover practical support measures at the pan-government level to overcome the crises in the steel and secondary battery industries.”

Last December, Mayor Lee Kang-deok briefing during the on-site inspection by the Small and Medium Venture Business Administration's Corporate Environment Survey Team. Provided by Pohang City

This content was produced with the assistance of AI translation services.