Yeosu Petrochemical Sector Designated as Preemptive Response Area for Employment Crisis

Expansion of Employment Safety Nets Expected
Including Employment Retention Subsidies and Living Stabilization Support

Jeollanamdo Governor Kim Youngrok stated on the afternoon of the 19th at the provincial government briefing room, "The government’s designation of Yeosu City, the center of South Korea's petrochemical industry, as a 'Preemptive Response Area for Employment Crisis' is welcomed by all the residents of the province." Provided by Jeonnam Province

On the 19th, Jeollanam-do announced that Yeosu City was designated as a "Preemptive Response Area for Employment Crisis in the Petrochemical Sector" at the Employment Policy Council chaired by Minister of Employment and Labor Kim Younghoon.

The Preemptive Response Area for Employment Crisis is a system that provides proactive employment stability support when there are reasons for employment conditions to deteriorate or concerns that such deterioration may occur. This system was introduced for the first time in July, and Yeosu City has become the first case designated under this new system.

Going forward, the Ministry of Employment and Labor will designate Yeosu City as a Preemptive Response Area for Employment Crisis for the next six months and will consider designating it as an Employment Crisis Area for up to two years depending on future employment indicators.

Previously, Jeollanam-do applied for the designation of Yeosu as an Employment Crisis Area to the Ministry of Employment and Labor on April 30 to address employment instability in Yeosu's petrochemical industry, which has been facing difficulties due to global oversupply and other factors. The on-site inspection was completed on May 26.

With this designation, workers and companies in Yeosu will benefit from expanded support for various programs and exemptions from certain qualification requirements.

Major support measures for workers include: ▲Expansion of the Naeil Baeum Card for vocational training expenses (from 3 million won to 5 million won) ▲Living stabilization fund loans (from 20 million won to 25 million won) ▲Living expense loans for workers with unpaid wages (from 10 million won to 15 million won) ▲Vocational training living expense loans (from 10 million won to 20 million won) ▲Exemption from income requirements for the National Employment Support System II (from 100% or less of median income to exemption for those who left their jobs within three months prior to the designation date).

Companies will benefit from employment retention subsidies (increased from 66.6% to 80% of leave-of-absence pay, up to 66,000 won per person per day), and employer vocational training support (from 100% to 130% of employment stability and vocational competency development insurance premiums).

Jeollanam-do is also providing its own special guarantees and low-interest loans for small business owners and SMEs. For small business owners, a total of 30 billion won in special guarantees is being provided, with the guarantee fee rate reduced from 1% to 0.8%. For SMEs, 10 billion won in emergency management stabilization funds is being provided, with up to 300 million won per company at an annual interest rate of 2.5%.

In the future, Jeollanam-do plans to continue requesting national funding from the government and seeking cooperation and attention to protect workers in key industries such as petrochemicals and steel.

To actively promote the "Eco-friendly and High Value-Added Transformation of the Yeosu Petrochemical Industrial Complex," which has been adopted as a national policy task, the province plans to establish a "CCUS Cluster" and a "Clean Hydrogen Industrial Belt" centered around the Yeosu National Industrial Complex and Myodo, and to lay the foundation for systematic government support by enacting the "Special Act on Overcoming National Key Industry Crisis."

Governor Kim stated, "We welcome the designation of Yeosu as a Preemptive Response Area for Employment Crisis, and together with the residents, we will work to make this a turning point for a major leap forward in Yeosu's petrochemical industry." He added, "We will actively pursue job creation projects that provide practical help to workers facing employment instability and local residents struggling due to the regional economic downturn, and we will respond proactively to overcome Jeollanam-do's employment crisis and restore the livelihood economy."