Jeonnam Province Urges Designation of Yeosu as Employment Crisis Region

Discussion with Ministry of Employment and Labor's On-site Inspection Team on May 26
Explained the Severity of Sharp Declines in Production and Exports

The on-site inspection team from the Ministry of Employment and Labor visited the area on the 26th to conduct an on-site inspection for the designation of Yeosu as an employment crisis region. Provided by Jeonnam Province

On May 26, Jeonnam Province strongly urged the government for active support and cooperation to swiftly respond to the regional employment crisis during the on-site inspection conducted by the Ministry of Employment and Labor's inspection team, which visited the area for the designation of Yeosu as an employment crisis region.

Jeonnam Province and Yeosu City applied to the Ministry of Employment and Labor on April 30 for the designation of Yeosu as an employment crisis region. This was to minimize the spread of the employment crisis across the region, which began with a sharp decline in employment among daily workers at the Yeosu National Industrial Complex due to the downturn in the petrochemical industry.

This on-site inspection was carried out as a follow-up measure. The inspection team directly assessed the impact of the employment shock in Yeosu on the local economy as a whole and reviewed the necessity of designating the area as an employment crisis region.

The team also visited companies such as Lotte Chemical in the Yeosu National Industrial Complex to hear directly from business representatives and workers, and then gained a comprehensive understanding of the employment crisis situation through Yeosu City's employment crisis report and a Q&A session.

Jeonnam Province explained to the inspection committee the seriousness of the regional economic and employment crisis, citing several factors: a sharp decline in production (down 11.6%) and exports (down 15.9%) at the Yeosu National Industrial Complex compared to 2022 due to the global oversupply in the petrochemical sector; an increase in business closures among nearby small business owners and a higher vacancy rate in the old downtown commercial area; a significant drop in local tax revenue, resulting in a chain reaction across the region; and a 36% decrease in employment among daily workers such as plant construction workers, due to reduced orders from large companies following the suspension of production facilities, compared to June of last year.

Jeonnam Province also conveyed the difficult situation faced by companies operating under challenging conditions, such as worsening business performance. Specifically, it was explained that companies are facing increased labor costs as they strive to maintain employment through reassignment of regular workers, rather than resorting to layoffs or workforce reductions. The province further emphasized that, since Yeosu was designated as a preemptive response industrial crisis region on May 1, it is essential for the area to also be designated as an employment crisis region in order to overcome the crisis quickly and ensure sustainable employment stability.

The Ministry of Employment and Labor plans to make a final decision on whether to designate Yeosu as an employment crisis region after comprehensively reviewing the results of this on-site inspection and related materials through the Employment Policy Deliberation Committee.