"Preferential Interest Rates from Supply Chain Fund Extended to Non-Security Materials, Parts, and Equipment Projects"

Incentives of 0.3 to 0.5 Percentage Points Possible with Fund Application
Support Strengthened by Linking Special Account and Fund for Materials, Parts, and Equipment

Even if a business involving materials, parts, and equipment (commonly referred to as "so-bu-jang") is not classified as an economic security item, it will still be eligible for preferential interest rate support from the Supply Chain Stabilization Fund if it is deemed to have a high impact on supply chain stabilization. The government plans to strengthen support for companies with a high potential for follow-up projects by expanding the linkage between the special account for materials, parts, and equipment and the fund.

On the 23rd, the government, led by Deputy Prime Minister and Minister of Economy and Finance Koo Yuncheol, held the 14th Committee on Strengthening Competitiveness of Materials, Parts, and Equipment and announced the “Support Plan for Materials, Parts, and Equipment through the Supply Chain Stabilization Fund.” The Supply Chain Stabilization Fund is a policy finance fund with a scale of 10 trillion won, designed to proactively respond to supply chain crises and stably secure key materials, parts, equipment, and logistics networks. In addition to various industrial support measures, the fund includes financial support such as loans, guarantees, and investments.

Deputy Prime Minister and Minister of Economy and Finance Koo Yuncheol presides over the 14th Committee on Strengthening Competitiveness of Materials, Parts, and Equipment at the Government Seoul Office in Jongno-gu, Seoul on the 23rd, delivering opening remarks. Provided by the Ministry of Economy and Finance

The government’s plan includes applying preferential interest rates from the fund to projects related to materials, parts, and equipment, even if they are not classified as economic security items. If a fiscal project supported by the special account for materials, parts, and equipment is found to have a significant effect on supply chain stabilization, the fund will provide support even if the item is not an economic security item. Companies participating in fiscal projects for materials, parts, and equipment that receive fund support will be eligible for incentives such as preferential interest rates, receiving a benefit of 0.3 to 0.5 percentage points.

The plan also includes clarifying support for companies in the materials, parts, and equipment sector. For items classified as both economic security and materials, parts, and equipment, the government will provide preferential financial support, such as ultra-low interest loans, at the same level as for key supply chain sectors like secondary batteries and semiconductors. When promoting the fund, the government will make it clear that materials, parts, and equipment are also eligible for preferential interest rate support, and will work to improve accessibility for these companies to the fund system.

The linkage between the special account for materials, parts, and equipment and the fund will also be expanded. Projects selected through the special account will be regularly shared with the fund, and the fund will recommend that companies apply for support in areas with high potential for follow-up projects, such as commercialization and mass production. The government will also strengthen the foundation for policy coordination and information sharing by including the Korea Institute for Advancement of Technology in the Supply Chain Policy Institutions Council.

The government stated, “We expect to establish a system of division of labor and complementary support between fiscal and financial measures,” and added, “By clarifying the scope of preferential interest rates and linked support, we will expand accessibility for companies and enhance effectiveness.” The government also said, “We will support the entire cycle from research and development (R&D) to commercialization to enhance supply chain stability.”

Meanwhile, on the same day, the government established the “Basic Plan for Industrial Competitiveness in Materials, Parts, and Equipment (2026-2030).” The government considers strengthening industrial competitiveness amid the full-scale restructuring of supply chains surrounding materials, parts, and equipment-essential for high-tech industries-to be a core element of economic security and a vital condition for national survival. The government plans to promote policy support centered on the basic plan to strengthen not only the related market but also the capabilities of the ecosystem.

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