Support for Two Years in R&D and Employment Stabilization
Mayor Jung Kimyung: "A Positive Signal for Local Economic Recovery"
Yeosu City in South Jeolla Province has been designated as an 'Industrial Crisis Preemptive Response Area.' This is the first case in the country where such a designation has been made as a measure to respond to a local industrial crisis.
According to Yeosu City on May 1, the Ministry of Trade, Industry and Energy held an Industrial Crisis Response Deliberation Committee chaired by the Minister on April 30 and officially designated Yeosu as a preemptive response area.
As a result, emergency business stabilization funds and preferential local investment promotion subsidies will be provided, and policy-based financial support for Yeosu's partner companies and small business owners will be strengthened.
In addition, policy finance institutions will support maturity extensions and repayment deferrals for partner companies and small business owners, while Korea Credit Guarantee Fund and Korea Technology Finance Corporation will launch preferential guarantee support programs for partner companies. Notably, to encourage active support from policy finance institutions, staff members will be exempt from liability in cases without intentional or gross negligence.
Furthermore, the city plans to actively reflect various support projects needed to overcome the industrial crisis?such as research and development, management consulting, and employment stabilization?in the budget after 2026.
Separately, in-depth consultations are underway between South Jeolla Province and central government ministries regarding 16 major issues raised by businesses, including legal and institutional improvements.
Previously, South Jeolla Province submitted an application to the Ministry of Trade, Industry and Energy on March 13 in response to Yeosu City's request for preemptive designation, citing "serious concerns about the deterioration of Yeosu's local economy." The Ministry conducted an on-site inspection in Yeosu on March 24, held working-level consultations with relevant ministries and local governments, and finalized the designation through the Industrial Crisis Response Deliberation Committee on April 30.
The city expects that the designation as a preemptive response area will help revitalize Yeosu's petrochemical industry, which has been struggling due to the global economic downturn and oversupply, and will make a significant contribution to stabilizing local employment.
Going forward, the city plans to actively utilize government support to strengthen the technological competitiveness of the petrochemical industry and improve infrastructure, while also making ongoing, multifaceted efforts to diversify the local economy in the long term.
Mayor Jung Kimyung stated, "We welcome and appreciate this government designation," adding, "Based on the government's active support, we will do our utmost to further enhance the competitiveness of Yeosu's petrochemical industry and inject positive momentum into the overall local economy, which has been stagnant."
He added, "We will use this designation as an industrial crisis preemptive response area as an important stepping stone to overcome local economic difficulties and secure new growth engines."
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