Agri-food firms with strong technology eligible for up to 5 billion won in low-interest policy loans

Small and medium-sized agri-food enterprises with proven technology will be able to access low-interest policy loans of up to 5 billion won ($3.24 million) starting in the second half of this year.

The Korea Agency of Education, Research and Technology in Agriculture announced Wednesday that it is launching the "2026 Second-Half Technology Startup Fund Support Project."

The program targets small and medium-sized enterprises holding patents or other advanced technology in the agriculture, forestry, livestock and food sectors. Applicants must first undergo a technology assessment by the agency before proceeding to a loan review by NongHyup Bank.

Working capital loans are available at up to 2 billion won per company, at a variable interest rate of 2.13 percent per year as of June, with repayment spread over three years following a two-year grace period.

Facility improvement loans are available at up to 5 billion won, with borrowers able to choose between a fixed rate of 2.5 percent per year or a variable rate of 2.13 percent per year. Repayment runs over six years after a four-year grace period.

Last year, the agency provided about 69 billion won to 57 companies through the program. Of the 53 companies that received technology assessment certificates, 39 had secured loans by the end of the first half of this year, for a utilization rate of 73.6 percent.

"We will actively support agri-food companies that have excellent technology but are struggling due to a lack of funding, so they can use this support as a springboard for growth," said Lee Seok-hyeong, president of the agency.