Pohang's Special Support Zone Status Extended Amid Steel and Battery Industry Downturn | Be Korea-savvy

Pohang’s Special Support Zone Status Extended Amid Steel and Battery Industry Downturn


The Ministry of SMEs and Startups has extended the designation of Pohang's small business special support zones in response to economic challenges faced by the city's steel and secondary battery industries. (Image courtesy of Yonhap)

The Ministry of SMEs and Startups has extended the designation of Pohang’s small business special support zones in response to economic challenges faced by the city’s steel and secondary battery industries. (Image courtesy of Yonhap)

POHANG, Jan. 16 (Korea Bizwire) — The Ministry of SMEs and Startups has extended the designation of Pohang’s small business special support zones in response to economic challenges faced by the city’s steel and secondary battery industries.

According to Representative Lee Sang-hwi of the People Power Party on January 15, the ministry has renewed the special support zone status for five small business clusters in Pohang for an additional two years.

Special support zones are designated areas aimed at facilitating rapid business recovery in industrial complexes and manufacturing districts where small and medium-sized enterprises (SMEs) are experiencing or at risk of economic deterioration. 

The five designated areas include Pohang Steel Industrial Complexes 1, 2, and 3, Pohang Fourth General Industrial Complex, and the Jenae-ri Industrial Area in Daesong-myeon. 

These areas were initially designated as special support zones following damage from Typhoon Hinnamnor in 2023. The designation was set to expire on January 25.

The city of Pohang and local business leaders had lobbied for an extension, noting that Pohang’s overall economy was in crisis due to the downturn in steel and secondary battery industries, which are the city’s core sectors. 

In response, the ministry decided on the two-year extension following on-site inspections and deliberation by a review committee. 

SMEs located within these special support zones can participate in public procurement through restricted competitive bidding and private contracts for goods they directly produce. They are also eligible for systematic support including emergency management stabilization funds, research and development assistance, consulting services, and sales support. 

“We hope the government’s decision to extend the special support zone designation will provide some relief to local small businesses in their efforts to stabilize operations,” Lee said.

M. H. Lee (mhlee@koreabizwire.com) 

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