Gwangyang Steel Industry and Related SMEs to Receive Full-Scale Financial Support

Full-Scale Launch of Secondary Compensation Support Project...
Applications Open Until December 11
Up to 1 Billion Won Per Company...
Additional Announcement Scheduled for Mid-January Next Year

Gwangyang City in South Jeolla Province announced on December 2 that, following its designation as an "Industrial Crisis Preemptive Response Area" by the Ministry of Trade, Industry and Energy on November 20, a secondary compensation support project for the local steel industry and related small and medium-sized enterprises will be actively promoted.

The "Regional Industry Crisis Response Secondary Compensation Support Project" is a financial support measure aimed at alleviating the management burden of companies in industrial crisis areas and proactively responding to the contraction of the steel industry. The core of the program is to help companies secure liquidity by providing government-backed secondary compensation (interest support) for new working capital loans.

Following the designation as an "Industrial Crisis Preemptive Response Area" by the Ministry of Trade, Industry and Energy on November 20, a secondary compensation support project for the local steel industry and related small and medium-sized enterprises will be actively promoted. Provided by Gwangyang City

The support targets are primary metal manufacturing (C24) companies based in Gwangyang City, as well as small and medium-sized enterprises operating in closely related upstream and downstream industries. The loan limit is up to 1 billion won per company.

If a company receives a new loan from a financial institution for business operations or sales activities, it will be eligible for secondary compensation benefits of up to 3 percentage points of the loan interest rate from the date of the loan contract until December 31. Loans for facility funds (such as the purchase of machinery and equipment, factory establishment, land acquisition, construction, and facility expansion) that are intended for refinancing existing loans are excluded from the program.

Applications will be accepted online via the Korea Institute for Advancement of Technology (KIAT) project management system until 6:00 p.m. on December 11. Companies that miss this year's application period will have another opportunity to apply through an additional announcement scheduled for mid-January 2026.

Gwangyang City plans to link this support project with the expansion of local investment promotion subsidies and emergency management stabilization funds to strengthen the stable business foundation of local companies. In addition, the city will focus its administrative efforts on seeking designation as an "Employment Crisis Preemptive Response Area" to further enhance support for workers.

Jung Haejong, Director of the Investment and Economy Division, stated, "We expect that this secondary compensation support project will provide practical help for local steel companies to secure liquidity, which will ultimately revitalize the local economy. We will continue to develop various support measures that companies can truly feel, and do our utmost to strengthen industrial competitiveness and stabilize the regional economy."

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