Pohang Mayor Lee Gang-deok Visits Pohang Steel Management Corporation to Overcome Steel Industry Crisis

Discussion on Steel Industry Issues and Crisis Overcoming Measures with POSCO and Resident Company Representatives

Concerns over Local Consumption Contraction... Request to Unite Efforts for Economic Recovery and Livelihood Stability in Local Commercial Areas

On the 10th, Lee Gang-deok, mayor of Pohang, visited the Pohang Steel Management Complex and held in-depth discussions with representatives of resident companies regarding the crisis situation in the local steel industry.

On the 10th, Lee Gang-deok, Mayor of Pohang, visited the Pohang Steel Industrial Complex to discuss the crisis situation of the local steel industry with representatives of resident companies. Photo by Pohang City

The convening of the extraordinary board meeting of the Pohang Steel Management Complex was arranged to address the difficulties recently faced by the Pohang steel industry and to seek sustainable industrial development measures.

Mayor Lee shared the challenges and crisis factors confronting the steel industry, such as weakening competitiveness, global market uncertainties, and rising raw material prices, with representatives from major steel companies including POSCO and Hyundai Steel, and discussed practical countermeasures to overcome these issues.

The mayor stated, “I would like to thank the executives and workers of the steel industry who are striving to overcome difficulties despite the recent global oversupply and low-price competition,” adding, “Pohang City is continuously requesting cooperation from the National Assembly and government ministries to prepare support measures such as designation as a Special Industrial Crisis Response Area. The city plans to focus all available resources on support, including forming an industrial crisis response TF team and increasing next year’s budget allocation for steel and small and medium-sized enterprises.”

He also said, “Currently, the industry is struggling and the government is in a difficult situation, and with local consumption shrinking, there is great concern for small business owners and neighborhood markets,” urging, “Everyone should work together for the recovery of the local economy and stabilization of livelihoods, including small and medium-sized enterprises, small business owners, and neighborhood markets.”

To respond to the regional industrial crisis, Pohang City has formed an industrial crisis response TF team and submitted an extension application for the special support area for small and medium-sized enterprises to the Ministry of SMEs and Startups at the end of last November, with an on-site inspection forthcoming.

In addition, through continuous cooperation with central government ministries such as the Ministry of SMEs and Startups and the Ministry of Trade, Industry and Energy, efforts are being made to prepare urgent countermeasures to overcome the crisis, including government subsidies for SMEs, domestic company quota systems, and reductions in industrial electricity rates. Next year, administrative efforts will be focused on revitalizing the local economy by establishing a 200 billion KRW special guarantee fund for small business owners and issuing Pohang Love Gift Certificates worth 200 billion KRW.