Government Considers '1.4 Trillion' Support for Pohang... On-site Inspection of Typhoon Damage Tomorrow

Government Reviews Designation of Pohang as an 'Industrial Crisis Preemptive Response Area'

Still Muddy Field
(Pohang=Yonhap News) On the 8th of this month, mud accumulated by Typhoon Hinnamnor remains uncleared and piled up in the slab yard of POSCO Pohang Steelworks' 2nd Hot Plate Plant in Nam-gu, Pohang-si, Gyeongbuk. 2022.9.8 [Provided by POSCO. Redistribution and DB reproduction prohibited]
sds123@yna.co.kr
(End)


＜Copyright(c) Yonhap News Agency, unauthorized reproduction and redistribution prohibited＞

[Asia Economy Sejong=Reporter Lee Jun-hyung] The government is considering designating Pohang City, which was directly hit by Typhoon Hinnamnor, as an 'Industrial Crisis Preemptive Response Area.' If designated as an Industrial Crisis Preemptive Response Area, Pohang City is expected to receive government support amounting to approximately 1.4 trillion KRW.

The Ministry of Trade, Industry and Energy announced that Hwang Soo-sung, Director of the Industrial Innovation Growth Office, chaired the '1st Review Meeting on the Designation of Pohang City as an Industrial Crisis Preemptive Response Area' on the morning of the 27th at the Korea Institute for Industrial Technology Evaluation and Planning in Daegu. The meeting was attended by seven central government ministries including the Ministry of Trade, Industry and Energy, Ministry of Economy and Finance, Ministry of the Interior and Safety, Ministry of Employment and Labor, as well as two local governments, Gyeongsangbuk-do Province and Pohang City. Director Hwang shared the damage status of Pohang’s steel industry and reviewed the necessity and support details for the designation as an Industrial Crisis Preemptive Response Area.

An Industrial Crisis Preemptive Response Area refers to a region where the main local industries are expected to have suffered significant damage due to unforeseen internal or external shocks. When the mayor or governor of the relevant city or province applies, the Industrial Crisis Response Deliberation Committee, chaired by the Minister of Trade, Industry and Energy, reviews and designates the area. Upon designation, the area can receive government financial and fiscal support such as funds and loans, as well as research and development (R&D) and commercialization support.

Pohang City has been designated a special disaster area due to flood damage caused by Typhoon 'Hinnamnor.' On the 23rd, Gyeongsangbuk-do Province requested the Ministry of Trade, Industry and Energy to designate Pohang City as an Industrial Crisis Preemptive Response Area. This request was based on the judgment that intensive government-wide support is necessary to prevent the flooding damage at POSCO Pohang Steelworks and other facilities from leading to a downturn in the entire steel industry.

Pohang City estimates that the damage caused by the typhoon, including flooding and destruction in the Pohang Steel Industrial Complex, amounts to approximately 1.8 trillion KRW. The reason Gyeongsangbuk-do set the scale of support projects at about 1.4 trillion KRW in the application submitted to the Ministry of Trade, Industry and Energy is based on this estimate. Specifically, Gyeongsangbuk-do requested 27 support projects including financial support for POSCO’s small and medium-sized partner companies, emergency infrastructure restoration, improvement of workers’ working conditions, and establishment of facilities and equipment for technology and quality advancement.

Minister Lee Chang-yang of Industry presiding over a meeting with presidents of the top 10 conglomerates
(Seoul=Yonhap News) Reporter Kim Ju-seong = On the afternoon of the 26th, Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is presiding over a meeting with presidents of the top 10 conglomerates at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, to respond to the global energy crisis. 2022.9.26
utzza@yna.co.kr
(End)

＜Copyright (c) Yonhap News Agency, unauthorized reproduction and redistribution prohibited＞

If Pohang City is designated as an Industrial Crisis Preemptive Response Area, it will become the first beneficiary of the related system. The Industrial Crisis Preemptive Response Area designation system was introduced in February alongside the enforcement of the 'Special Act on Regional Industrial Crisis Response and Regional Economic Recovery.' It differs from the Industrial Crisis Response Special Area, which is designated when the impact of damage to the main local industries on the regional economy becomes visible.

The Ministry of Trade, Industry and Energy plans to conduct a joint on-site inspection with related ministries and experts on the 28th. A ministry official stated, "We will promptly proceed with follow-up procedures such as on-site inspections," and added, "We plan to finalize the designation and support details through the Industrial Crisis Response Deliberation Committee."

Meanwhile, the Ministry of Trade, Industry and Energy drew a line regarding the emerging 'POSCO accountability debate' amid the investigation into the flooding damage at Pohang Steelworks. Minister Lee said at a press briefing held at the Government Complex Sejong on the 26th, "I have been informed that a significant number of factories will be operational by the end of this year, and the possibility of market stabilization looks quite high," adding, "The Ministry of Trade, Industry and Energy is not in a position to reprimand or hold POSCO responsible."