On the 19th, the third day since the fire at Kumho Tire's Gwangju factory, officials from the National Forensic Service, police, and fire department are investigating the fire site at Kumho Tire Plant 2 in Gwangsan-gu, Gwangju. Photo by Yonhap News
The Gwangju Chamber of Commerce and Industry announced on the 20th, "In relation to the fire at Kumho Tire's Gwangju factory on the 17th, we urge the government and local authorities to provide swift and practical support."
In a statement released that day, the Gwangju Chamber of Commerce and Industry said, "It is a matter of great concern that the main production facilities suffered significant damage and the factory's operations have been completely halted due to this fire, as this could have a serious impact on the regional economy and the entire industrial ecosystem."
They stated, "Kumho Tire's Gwangju factory is a symbolic company that has served as a central pillar of Gwangju's manufacturing industry, not only employing over 2,300 workers but also through its connections with numerous partner companies." They added, "There is even greater concern because the damage occurred at a time when the company was continuing its recovery by focusing on the development of high-performance tires for electric vehicles and had just begun to accelerate its growth strategy with the goal of achieving 5 trillion won in sales this year."
They continued, "We urge the government to designate the area where Kumho Tire's Gwangju factory is located as a special disaster zone, and accordingly, to provide emergency restoration funds from the national budget and to promptly implement disaster recovery procedures." "In addition, if the factory shutdown is prolonged, partner companies and workers could face employment instability and threats to their livelihoods. Therefore, we request that the government, through a swift review of employment policies, designate the area as an employment crisis zone and prepare employment stabilization measures, such as expanding employment retention subsidies, providing compensation for temporary business suspension, and supporting partner companies."
They also said, "We urge the Gwangju city government to actively prepare effective support measures for affected companies and partner firms, such as reducing local taxes, providing emergency management stabilization funds, and operating a one-stop administrative support center." "In order to quickly overcome the damage caused by this fire and restore vitality to the regional economy, public and private sectors must work together."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
