Pohang Designated as 'Preemptive Industrial Crisis Response Area'... Overcoming Steel Crisis and Revitalizing the Regional Economy

Intensive Support for Two Years:
Financial and Fiscal Assistance,
Management and Technical Consulting,
Employment Stabilization Measures
Strengthening Tailored Support for SMEs,
Advancing High Value-Added Steel,
Driving Regional Economic Revitalization

On August 28, Pohang City was officially designated as a Preemptive Industrial Crisis Response Area by the Ministry of Trade, Industry and Energy.

This measure is the result of proactive efforts by citizens and local companies to address the difficulties faced by regional steel companies and their partner firms, which have been hit hard by a global slowdown in steel demand, the spread of protectionism, and the imposition of high tariffs by the United States.

Believing that the Pohang steel industry was at risk due to global oversupply and the influx of unfairly traded imports, the city applied for the Preemptive Industrial Crisis Response Area designation on July 18. After an on-site inspection on August 5 and a review by the Industrial Crisis Response Committee, the designation was finalized.

With this designation, Pohang City will receive enhanced support such as emergency management stabilization funds, preferential rates for local investment promotion subsidies, and strengthened policy-based financial support for small and medium-sized enterprises. Policy-based financial institutions will provide maturity extensions and repayment deferrals for SMEs, while the Korea Credit Guarantee Fund and Korea Technology Finance Corporation will launch preferential guarantee support programs for partner companies and small business owners.

The Korea SMEs and Startups Agency will offer loans of up to 1 billion KRW at an interest rate of 3.71%, with a two-year grace period and a five-year maturity. The Small Enterprise and Market Service will provide loans of up to 70 million KRW at an interest rate of 2.68%, also with a two-year grace period and a five-year maturity.

The subsidy rate for local investment promotion will also be increased: for large companies' facility investments, the rate will rise from 6% to 12%, and for SMEs' facility investments, it will increase from 10% to up to 25%.

Additionally, a range of customized support policies will be implemented, including financial and fiscal support such as funding and loans tailored to the region's characteristics, support for research and development and commercialization, and employment stabilization measures.

With this designation, Pohang City plans to actively promote various tailored support projects, such as expanding emergency management stabilization funds and interest subsidy support for small and medium-sized steel companies, as well as workforce training and technical consulting to strengthen corporate competitiveness. The city is also closely coordinating with North Gyeongsang Province and central government ministries on projects proposed for the structural transformation and competitiveness enhancement of the steel industry.

This achievement is the result of the dedicated efforts of local National Assembly members Kim Jungjae (Pohang Buk-gu) and Lee Sanghui (Pohang Nam-gu and Ulleung), who personally visited relevant ministries to deliver petitions, as well as the close cooperation among the Pohang City Council, North Gyeongsang Province, major local steel companies, and the strong commitment of Pohang City.

Mayor Lee Kangdeok has repeatedly persuaded the National Assembly and central government, raising awareness of the seriousness of the crisis facing the Pohang steel industry and consistently emphasizing the need for this designation. He especially noted that everyone must work together to ensure the swift enactment and implementation of the recently proposed "K-Steel Act."

Mayor Lee added that, for this designation to have an even greater synergistic effect, it is urgent for the government to establish practical support measures, as energy costs such as electricity rates are the biggest burden for steel companies. He also stressed the need for support for projects such as the construction of the "Energy Expressway," an undersea power grid connecting Uljin and Pohang, and the establishment of a hydrogen energy pipeline network.

Mayor Lee stated, "This designation as a Preemptive Industrial Crisis Response Area is the result of the shared aspirations of Pohang City, the local community, the National Assembly, the City Council, North Gyeongsang Province, and local companies to overcome the industrial crisis together," adding, "We will turn the crisis facing the steel industry, which stands at a crossroads of survival, into an opportunity for a new leap forward and lead the revitalization of the regional economy."

The designation as a Preemptive Industrial Crisis Response Area will be in effect for two years, from August 28, 2025, to August 27, 2027. During this period, various support measures will be implemented to overcome the crisis, including financial support such as emergency management stabilization funds, preferential rates for local investment promotion subsidies, maturity extensions and repayment deferrals for SMEs, and preferential guarantee support for partner companies and small business owners, as well as consulting and employment support.

Relay on-site meeting of Pohang steel companies held on the 14th. Provided by Pohang City

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