Checking the Status of Preemptive Industrial Crisis Response Area Designation
10 Billion Won in Competitiveness Enhancement Through Supplementary Budget
On May 14, the South Jeolla Provincial Government held the second meeting of the "Steel Industry Crisis Response Council" at the Gwangyang Knowledge Industry Center to review the current response status for the designation of a preemptive response area for industrial crisis.
This meeting was the first full-scale session since the council was launched in April. It was attended by more than 20 council members, including representatives from the South Jeolla Province, Gwangyang City, Suncheon City, related organizations, and the industrial sector.
During the meeting, the South Jeolla Provincial Government shared the current structural crisis in the steel industry and the progress of efforts to secure designation as a preemptive response area for industrial crisis. The province also agreed to further strengthen the public-private cooperation system to develop future strategies and make recommendations to the central government.
The steel industry in South Jeolla is a core sector, accounting for 23.1% of the region's gross regional domestic product (GRDP) as of 2022, 34.4% of the nation's total steel production, and 17.9% of the region's exports as of 2024.
However, the industry is currently facing multiple simultaneous crises, including high tariffs imposed by the United States, a slowdown in global demand, accelerated transition to decarbonization, and the expansion of low-priced steel imports from China.
In response, the South Jeolla Provincial Government plans to formally request the central government to designate the region as an "industrial crisis preemptive response area" to overcome the crisis in the steel industry and strengthen its competitiveness. The province expects that such designation would enable comprehensive support in areas such as research and development (R&D), employment and market access, and investment.
To proactively address the industrial crisis, the province is implementing a 1 billion won "Steel Company Competitiveness Enhancement Support Project" through the first supplementary budget of this year. The project targets small and medium-sized as well as mid-sized steel companies in the Gwangyang Bay Area, providing support for process improvement, prototype production, and customized consulting.
In the mid- to long-term, the province is also accelerating efforts to establish a foundation for strengthening industrial competitiveness. It is supporting the development of carbon reduction technologies and the establishment of a steel industry digital transformation demonstration center, helping small and medium-sized companies transition to carbon-neutral manufacturing processes and develop high value-added materials and products. The province is also fostering steel demand companies to meet new industry needs, such as wind power substructures and products for liquefied hydrogen storage and transportation.
The provincial government continues to relay the concerns of companies regarding changes in the trade environment, such as carbon border taxes and tariffs, to the central government. To help key national industries like the steel sector overcome crises, the province plans to include the enactment of a "Special Act on Support for Key National Industries"?covering restructuring support and regulatory exemptions?as a presidential campaign pledge for the next administration, thereby establishing a comprehensive and sustainable government-level support system.
So Youngho, Director General of Strategic Industries for South Jeolla Province, said, "We will actively recommend key initiatives such as the designation of preemptive response areas for industrial crisis and the enactment of special laws to the government and the National Assembly, and will do our utmost to lay the foundation for the region’s industrial resurgence."
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