Gwangju Employers Federation Calls for Administrative and Financial Support After Kumho Tire Gwangju Plant Fire

On the afternoon of the 17th, smoke is spreading at Kumho Tire Gwangju Plant in Songjeong-dong, Gwangsan-gu, Gwangju. Photo by Yonhap News

Economic organizations in the Gwangju region have expressed concerns about the potential impact on the local economy following the fire at the Kumho Tire Gwangju Plant, and have called for swift administrative support to restore stability.

On May 19, the Gwangju Employers Federation issued a statement, saying, "Recently, an unexpected fire broke out at the Kumho Tire Gwangju Plant, a local company that plays a key role in our regional economy, resulting in the complete destruction of the factory. The situation is so severe that it is still difficult to accurately assess the extent of the damage, causing significant concern among local residents."

They stated, "The stability of employment for workers and the local economy must not be undermined. The Kumho Tire Gwangju Plant generates annual sales of 4.5 trillion won and employs about 2,000 local residents, making it a core driving force of the regional economy." "In particular, the Gwangju Plant is a key production base that accounts for a significant portion of Kumho Tire's total output, and it stands as a symbol of our region's manufacturing industry."

They continued, "However, due to the complete suspension of factory operations caused by this fire, the substantial damages faced by around 60 partner companies are now becoming a reality." They emphasized, "This is not simply a matter of production disruption. It directly leads to employment instability and livelihood issues for numerous workers, and furthermore, it could trigger a chain of difficulties throughout the regional parts and materials industry, posing a very serious threat to the entire Gwangju economy."

They appealed, "We urge the government, Gwangju City, the Gwangju Regional Employment and Labor Office, and other relevant authorities to mobilize all possible administrative and financial support to help the Kumho Tire Gwangju Plant resume production and recover from the damage as quickly as possible." "We also call on Kumho Tire to take this accident as a painful lesson, to establish more thorough safety inspections and measures to prevent recurrence, and to make every effort for the normalization of the plant through its own initiatives."

Additionally, they said, "We hope that local economic institutions and civil society will demonstrate solidarity by providing practical support, such as promoting the use of local products." "If all relevant agencies, companies, and citizens unite their wisdom and capabilities to wisely overcome this crisis, we will be able to build a safer and more sustainable industrial ecosystem," they added.