Gyeongnam Province Submits Government Petition to Extend Designation as Special Industrial Crisis Response Area

Gyeongnam Province and 4 Cities/Counties Make Every Effort to Extend Designation as Special Industrial Crisis Response Area

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Gyeongsangnam-do announced on the 14th that it has submitted a government petition requesting the extension of the designation of Changwon-si Jinhae-gu, Tongyeong-si, Geoje-si, and Goseong-gun as Special Industrial Crisis Response Areas.

The designation period for these four regions will expire on the 28th.

Accordingly, Governor Kim Kyung-soo held a meeting on the same day with National Assembly member Kim Jeong-ho (Gimhae Eul) and the heads of the four regions to request the extension of the Special Industrial Crisis Response Area designation.

At the meeting, Governor Kim said, "Although the order performance of the three major shipbuilders, including LNG ships, is continuously improving, it takes nearly a year for subcontractors, suppliers, the regional economy, and residents to feel the effects, which is a difficult issue," adding, "If the COVID-19 situation is overcome this year, let's work together so that the Special Industrial Crisis Response Area can graduate after this extension."

Gyeongnam's shipbuilding industry accounted for 17.2% of the world's orders and 25.5% of the order amount as of the end of last year.

However, compared to 2015, which was a boom period for shipbuilding, last year's export volume decreased by 40%, and the number of workers dropped by 48%.

Although news of new orders from the three major large shipbuilders has been coming in one after another this year, medium-sized shipbuilders and partner companies in the Gyeongnam region still seem unable to escape the aftermath of COVID-19.

To expect a trickle-down effect from the orders of large shipbuilders, they need to endure until next year, so government support is still necessary.

The Ministry of Trade, Industry and Energy conducted an on-site inspection last month.

At that time, in-depth interviews were conducted with local shipbuilding companies and raw material suppliers. It is known that they visited sites such as HSG Sungdong Shipbuilding and Geoje Okpo Market to check the situation of companies and local commercial districts.

Meanwhile, the Ministry of Trade, Industry and Energy plans to decide on the extension after the Regional Industry Crisis Deliberation Committee meeting and the Ministerial Meeting on Industrial Competitiveness Enhancement, scheduled for the 18th of this month.