Ministry of SMEs and Startups to Support Equipment Installation for SMEs Seeking Carbon Reduction

Recruitment of 30 Companies for the "Supply Chain Track"
of the Carbon Neutral Equipment Investment Support Program

The Ministry of SMEs and Startups announced on April 13 that it is recruiting small and medium-sized enterprises (SMEs) to participate in the "2026 Carbon Neutral Equipment Investment Support (Supply Chain Track)" program.

The "Carbon Neutral Equipment Investment Support" program is designed for SMEs that are not subject to mandatory carbon reduction regulations such as the Emissions Trading System. The program provides support packages of up to 300 million won, including consulting for process-specific carbon emissions reduction equipment, market research, and equipment adoption.

With the implementation of comprehensive domestic and international carbon regulations throughout the supply chain, such as the EU Carbon Border Adjustment Mechanism (CBAM), EU supply chain due diligence, and the institutionalization of ESG disclosures, it has become increasingly urgent for SMEs within the supply chain, as well as large and mid-sized companies, to prepare their responses.

This program focuses on supporting partner SMEs that are connected to prime contractors (large companies, first-tier suppliers, etc.) within the supply chain. If a prime contractor supports a partner SME in reducing its carbon emissions, the government will also help companies within the supply chain respond to carbon regulations. Applications must be submitted jointly (as a consortium) by the prime contractor and the partner company. The prime contractor is required to cover either the full 50% or 40% (with the partner company covering an additional 10%) of the total project cost for installing equipment at the partner company's site, while the government provides the remaining 50% of the project funding.

After application and registration, the final companies to receive support will be selected through a process that includes document review, on-site inspection, and presentation evaluation. After the project is completed, post-management will be conducted for five years, including optimization of equipment operation and assessment of reduction effects. Kim Daehee, Director of SME Strategic Planning at the Ministry of SMEs and Startups, stated, "As supply chain regulations, such as the upcoming EU supply chain due diligence directive and climate-related disclosures, are expected to increase the burden of carbon reduction, we hope that this program will enable prime contractors and supply chain companies to overcome these challenges together through mutual cooperation, and that it will serve as a positive example for the entire supply chain."

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