Korea Smart Farm Subsidy and Own Contribution Calculator
Compare 2026 Korean smart farm grants, actual loans, own funds, prefunding gaps and repayment schedules with a self-funded installation, including net savings and simple payback.
1. Program and eligible costs
Total investment is the actual cash price including VAT and excluded items. Enter eligible cost after checking item limits and VAT settlement. Consulting support is separate.
National 25% + local 30% + loan up to 25% + own cash 20%
Eligible projects below KRW 1 million receive no modeled support. Confirm the combined-facility exception to the ICT-only KRW 200 million cap. Item prices and eligibility are not automatically assessed.
Area, crop and equipment notes
Area and crop do not generate prices or income. The young / successor farmer flag is a consultation note and adds no automatic grant.
2. Actual lending and extra local support
Funding basis ₩0 · loan allocation ₩0
Enter only extra local funding confirmed to replace loan allocation. It cannot replace the mandatory 20% own contribution. Undrawn lending becomes additional own cash.
Defaults use 2% fixed interest, 3-year grace and 7-year repayment, modeled as annual equal principal. Interest accrues during grace; actual bank dates and variable rates may differ.
3. Self-funded alternative and savings
Compare equivalent area, crop and performance. Savings mean cash expenses avoided relative to prior operation, excluding crop revenue. Savings less extra maintenance stay constant from the first operating year. The alternative uses only own funds.
4. Cash needed before funding arrives
100% assumes you pay before any grant or loan receipt; 0% assumes funding arrives with payment. Reserve the same operating cash for both options; it is not counted again as a cost or in payback. Monthly peak deficits and bridge interest are separate.
Enter both investment quotes. You can load the example to explore the calculation.
Plan your own contribution before committing to a smart farm
A grant percentage does not tell you how much cash you need to install equipment.
Eligible costs, local funding, bank lending and supplier payment dates can produce very different cash requirements for the same project.
This calculator compares participation in a support program with an installation paid entirely from your own funds.
Korea-based · 2026 guidelines
All amounts are in Korean won (KRW), using South Korean horticultural support guidelines checked on September 7, 2026.
Results do not determine eligibility, award a grant or approve a loan.
Crop revenue, farmland conversion permission and the complete cost of moving to a rural area are outside this calculation.
Decisions this tool supports
- Budgeting for greenhouse controls, nutrient delivery, insulation or automation after taking over a farm.
- Comparing modernization quotes with equivalent scope and performance.
- Checking cash shortages when lending is reduced or grants arrive after supplier payments.
- Estimating repayment obligations and simple payback from energy and labor savings.
Gather the local notice, supplier quote and bank funding estimate before using the results in an application.
Crop and equipment notes preserve the context of your plan; they do not generate market prices or crop income.
2026 facility support and greenhouse construction
The default allocations come from the body of the 2026 guidelines.
A loan percentage is an allocation ceiling, not a guaranteed amount available to borrow.
National and local grants reduce investment cost, while loan principal remains repayable debt.
| Program | National | Local | Loan maximum | Own cash |
|---|---|---|---|---|
| Smart farm facility support | 25% | 30% | 25% | 20% |
| Greenhouse construction | 20% | 30% | 30% | 20% |
Eligible facility costs
ICT-only projects have a KRW 200 million funding-basis cap; facility projects below KRW 1 million are excluded.
Combined support for base facilities and control equipment has an exception to the ICT cap.
Select the matching scope and confirm recognized equipment, unit-cost limits and eligible expenditure with the local authority.
Loans and additional local grants
The default fixed interest rate is 2% annually, with 3 years of grace and 7 years of repayment.
Confirmed extra local grants may replace part of the loan allocation, but cannot replace the mandatory 20% own contribution.
Entering additional local funding therefore reduces the remaining loan ceiling.
The custom-notice mode accepts national, local and loan percentages totaling no more than 100%.
It does not automatically apply the facility minimum or ICT cap; enter costs that already reflect your notice.
The separate 100% national support for consulting must not be applied to the whole equipment investment.
Prepare consistent inputs
Total investment and eligible costs
Total investment means actual cash payable, including VAT and unsupported items.
Eligible cost is the amount you expect the authority to recognize after checking the item limits and settlement treatment.
Eligible cost cannot exceed total investment.
Excluded expenditure and amounts above the applicable funding cap remain your responsibility.
Expected loan drawn
Use the amount the bank expects to lend, which can be below the program maximum because of collateral, credit or the available budget.
Enter zero if you plan to use no borrowing.
Undrawn loan allocation becomes additional own cash rather than extra grant funding.
Savings less maintenance
Enter annual cash expenses avoided relative to the existing operation, such as energy bills or paid labor.
A reduction in your own working hours is not automatically a cash saving.
Deduct additional maintenance, software subscriptions and communications charges.
Net savings are assumed constant from the first operating year.
Self-funded quote
Compare equivalent area, equipment performance and crop requirements.
Enter separate savings and maintenance if the alternatives differ.
The self-funded path assumes no borrowing, so a privately financed alternative needs an additional financing comparison.
Formulas for grants, debt and net burden
Funding composition
Total grant = eligible funding basis × national rate + eligible funding basis × local rate + confirmed extra local grant
Initial own funds = total investment − total grant − actual loan drawn
Economic investment principal = total investment − total grant
Each percentage allocation is rounded down to whole won, leaving any remainder in own funds.
Horizon burden includes remaining debt
Horizon net burden = investment − grants + horizon interest − horizon net savings
Horizon net burden = cumulative net cash paid + outstanding loan principal at the horizon
A comparison period shorter than the grace period still includes all unpaid principal.
Principal is never treated as a grant and is not counted twice as both investment and repayment cost.
Simple payback
Program payback = (economic investment principal + full-term loan interest) ÷ annual net savings
Self-funded payback = self-funded investment ÷ its annual net savings
Nonpositive net savings produce no payback; zero investment produces zero years.
A result beyond the chosen horizon is identified separately.
This is a simple undiscounted measure rather than a discounted cash-flow break-even date.
Worked example: KRW 100 million facility investment
Assume total investment and eligible ICT costs are both KRW 100 million.
A KRW 25 million national grant and KRW 30 million local grant provide KRW 55 million in grants.
Drawing a KRW 25 million loan leaves KRW 20 million in initial own funds.
These are fictional planning inputs, not equipment market prices or guaranteed savings.
| Item | With program | Self-funded |
|---|---|---|
| Investment (KRW) | 100,000,000 | 90,000,000 |
| Principal after grants (KRW) | 45,000,000 | 90,000,000 |
| Ten-year interest (KRW) | 3,500,000 | 0 |
| Annual net saving (KRW) | 7,000,000 | 7,000,000 |
| Ten-year net burden (KRW) | −21,500,000 | 20,000,000 |
| Simple payback (years) | 6.93 | 12.86 |
Annual savings of KRW 8 million less KRW 1 million maintenance leave KRW 7 million in net savings.
At 2% with 3 years of grace and 7 years of equal-principal repayment, total interest is KRW 3.5 million.
The ten-year burden differs by KRW 41.5 million.
A negative burden means modeled expense savings exceed investment and interest; it is not the profit of the farming business.
First-year cash and prefunding exposure
Is KRW 20 million in own funds enough?
With a KRW 10 million operating reserve, initial own funds plus first-year interest of KRW 500,000 require KRW 30.5 million before counting savings.
If the entire supplier payment comes before both grants and the loan, the assumed funding need is KRW 110 million.
With KRW 30 million in available cash, that scenario leaves a KRW 80 million shortfall.
Annual preparation and the gap before funding arrives describe different timing risks.
A prefunding percentage of 100% means paying the full grant or loan amount before receiving it.
Zero means funding arrives with the supplier payment.
The default 100% is a conservative scenario, not a universal payment rule.
Confirm own-fund spending requirements, progress payments and bank drawdown dates.
The reserve is liquidity to retain, not an extra expense in net burden or payback.
Monthly peak deficits and bridge-loan interest are not modeled.
How to use the calculator and repayment schedule
- Check the notice. Select the program and identify the recognized project amount.
- Consult the bank. Separate maximum allocation, feasible lending and extra local funding.
- Compare equivalent quotes. Enter each investment, annual savings and added maintenance.
- Check liquidity. Enter cash, reserve and prefunding assumptions for delayed receipts.
- Save the plan. Print or save PDF/CSV inputs and repayment schedules for discussion with the authority and lender.
Year 0 represents completed installation and one full loan drawdown.
Interest is payable during grace; principal is then repaid in annual equal installments, with the rounding remainder paid in the final year.
Year 1 is the first operating year, not the first construction year.
The greenhouse program has a two-year project schedule, with a default 30% / 70% annual allocation, which requires its own construction cash plan.
The highlighted horizon row and remaining principal help distinguish delayed repayment from actual cost savings.
Test less favorable scenarios
Lower lending
Reducing the example loan from KRW 25 million to KRW 15 million increases initial own funds by KRW 10 million.
The grant stays unchanged and interest decreases, but more of the cost is financed from your cash.
Save both funding options for your bank consultation.
Lower savings
Energy prices, operating practices and growing conditions can change achieved savings.
Reduce the annual savings input and check the effect on burden and payback.
If additional maintenance exceeds savings, net costs keep increasing and no payback is calculated.
A lower modeled burden does not solve an immediate funding shortfall.
Likewise, a cheaper self-funded installation may save less each year if its performance differs.
Review equipment suitability, insurance, post-award management and application dates separately from this cost comparison.
Frequently asked questions
Do young or successor farmers receive an automatic bonus?
No common bonus percentage is assumed.
The flag records a consultation topic; enter only confirmed additional local funding that replaces loan allocation.
Can I enter a zero loan?
Yes.
The undrawn allocation becomes own funding.
The responsible authority still determines eligibility and required evidence of available capital.
What if a grant is received before paying the supplier?
Exclude the received amount from prefunding.
Use different grant and loan percentages when their payment dates differ.
Should I subtract all expected VAT refunds?
Do not subtract them automatically.
Check the refund, grant-share settlement or recovery, and any reinvestment approval before reconciling total and eligible costs.
Is an ICT project over KRW 200 million entirely unsupported?
The ICT-only model caps its funding basis at KRW 200 million and leaves the excess in own funds.
Confirm the combined-facility exception before selecting that scope.
Is a negative burden farm profit?
No.
It means cumulative modeled energy and labor savings exceed investment and interest.
Crop sales, seeds, fertilizer, land costs, taxes and the full business accounts are not included.
Does the schedule reproduce variable rates or monthly bank payments?
It uses a fixed-rate assumption and annual equal principal.
Confirm daily interest, staged drawdowns, monthly payments, construction interest and rate changes with the lender.
Official evidence and future updates
These calculations use the 2026 guidelines and current legislation verified on 2026-09-07.
Article 22 of the Subsidy Management Act concerns use for the authorized purpose; Article 35 restricts disposal of important subsidized assets.
Do not assume subsidized equipment can freely be sold or pledged.
Direct National Law Information OPEN API checks covered the Act effective 2026-06-02 (ID 000729, MST 286449) and Article 4 of its Enforcement Decree effective 2026-08-25 (ID 003650, MST 288975).
- Jeungpyeong County notice with 2026 facility-support guidelines: the 2026 attachment, sections II.4–5, supplies the funding terms.
- MAFRA notice 2026-236 with 2026 greenhouse guidelines: funding composition and greenhouse-modernization loan terms.
- Subsidy Management Act / Enforcement Decree (Korean official texts).
Recheck grant rates, eligible limits, lending terms, substitution of local funds and VAT settlement whenever guidelines change.
A 2026 attachment in a 2027 application notice is not proof of final 2027 terms.
The model excludes inflation, residual value, early-repayment charges, guarantee fees and separate tax effects.
Save a funding plan for your application
Compare the grant, expected loan, own funds and prefunding shortfall with the funding section of your application.
Save the inputs alongside the schedule so a revised quote or lending decision can be compared consistently.
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