Sharing of 19 Projects Worth 370 Billion KRW at Council Meeting
Initiating Structural Improvement with Special Act on National Key Industries and Mega Project
Participants are taking a commemorative photo after the Yeosu Petrochemical Industry Crisis Response Council meeting. Photo by Jeonnam Province
Jeonnam Province held a meeting of the Yeosu Petrochemical Industry Crisis Response Council, where it shared plans for short-term support measures totaling 370 billion KRW, as well as fundamental structural improvement initiatives such as the Special Act on Strengthening and Supporting National Key Industries and the Petrochemical Grand Transformation Mega Project.
In May, Yeosu became the first region in the country to be designated as a "Preemptive Industrial Crisis Response Zone" in the petrochemical sector. The meeting, held at the Yeosu Industry-Academia Convergence Center on July 16, was attended by more than 20 council members, including representatives from Jeonnam Province, Yeosu City, related organizations, industry, and labor sectors.
The Yeosu petrochemical industry is the world's largest single chemical industrial complex and serves as a core pillar of Jeonnam's economy. However, the industry's competitiveness has recently deteriorated significantly due to several factors: global oversupply, sluggish exports, increases in industrial electricity rates, and the strengthening of environmental regulations. As a result, urgent national-level support and response are required.
Accordingly, Jeonnam Province has proposed to the government a total of 19 customized support projects for the Yeosu region, amounting to 370.7 billion KRW.
The main ongoing projects include: emergency management stabilization funds and guarantees for small and medium-sized enterprises and small business owners; support for employment retention subsidies and welfare expenses; expansion of local investment promotion subsidies; and special discounts on Yeosu local gift certificates, among various on-site customized support measures.
In particular, to implement these support projects, the province secured a total of 5.2 billion KRW for industrial crisis response projects in the government's second supplementary budget. This is expected to enable swift support for businesses and the local economy.
Mid- to long-term strategic projects are also being promoted in the region, including the establishment of a carbon capture, utilization, and storage (CCUS) cluster; the creation of an eco-friendly chemical industry specialized complex; and the development of low-carbon technology based on bio-naphtha.
Through this meeting, Jeonnam Province is continuing its efforts to submit proposals to central government ministries to secure next year’s main budget and future national funding support. The province also plans to maximize the effectiveness of these projects through cooperation with the local industrial sector.
In addition, to fundamentally strengthen industrial competitiveness, the province is proposing to the National Assembly the enactment of the Special Act on Strengthening and Supporting National Key Industries. The goal is to establish a legal and institutional foundation for overall industrial restructuring and a new leap forward, including government-led restructuring and regulatory exceptions.
Alongside this, the province is working to have the Petrochemical Grand Transformation Mega Project included as a national agenda item, and plans to systematically promote it by securing selection as a preliminary feasibility study target and obtaining national funding.
Kim Gihong, Director of Strategic Industries at Jeonnam Province, stated, "We will do our best to ensure that the Yeosu petrochemical industry, the backbone of Jeonnam’s economy, not only receives short-term support but also establishes comprehensive countermeasures for fundamental structural improvement and transformation, thereby creating new growth engines."
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