First in the Nation for Petrochemical Industrial Complexes
A Turning Point Toward a Future-Oriented Industrial Structure
Efforts for Designation as an Employment Crisis Area and More
Kim Youngrok, Governor of Jeonnam Province, announced on May 1 that he welcomes the designation of Yeosu as a "Preemptive Response Zone for Industrial Crisis." He also added that the province will make every effort to secure the designation of a CCUS cluster, enact a special law to overcome crises in national key industries, and obtain the designation of an employment crisis area, all to support a new leap forward for the petrochemical industry.
This designation is the first case in which the government has designated a region in anticipation of a major industry’s decline. It is analyzed that the government has recognized the structural crisis facing Yeosu’s petrochemical industry as a serious issue and has taken preemptive action in response.
In his statement of welcome, Governor Kim assessed, "This decision will serve as a crucial turning point for the petrochemical industry to recover its ecosystem and advance toward a future-oriented industrial structure."
He continued, "Building on this designation, we will accelerate the transformation of Yeosu’s chemical industry, pursue the development of Yeosu National Industrial Complex and Myodo as a CCUS cluster and a clean hydrogen energy industrial belt, and devote all our efforts to enacting a 'Special Act for Restructuring and Strengthening Competitiveness to Overcome Crises in National Key Industries.'"
In September last year, Jeonnam Province established the "Yeosu Petrochemical Industry Crisis Response Council," and in November, formulated the "Yeosu Petrochemical Industry Competitiveness Enhancement Plan" to lay the groundwork for response. Since then, the province has worked closely with central ministries and related agencies to secure the designation as a Preemptive Response Zone for Industrial Crisis, and this designation is the result of those efforts.
The designation period is two years. During this period, Yeosu City will receive an additional allocation of approximately 62.2 billion won in local allocation tax. Jeonnam Province and Yeosu City plan to secure government funding by identifying 19 support projects across 5 sectors, totaling 370.7 billion won.
Jeonnam Province intends to use this designation as a decisive opportunity to overcome the industrial crisis centered on the Yeosu Industrial Complex and to transform the region into a hub for future new industries.
The 24.8 trillion won "Petrochemical and Steel Industry Transformation Mega Project" will also be launched in earnest, firmly establishing the foundations for future industries in the region, such as carbon neutrality, hydrogen energy, specialty chemicals, and artificial intelligence (AI). The province will continue to concentrate all administrative resources on restoring the competitiveness of the Yeosu Industrial Complex and revitalizing the local economy.
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