Gwangsan District in Gwangju Designated as First "Proactive Employment Crisis Response Area"

Employment Ministry Review Held on the 19th; First Case Alongside Yeosu City
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Gwangsan District in Gwangju has been designated as South Korea's first "Proactive Employment Crisis Response Area." The Ministry of Employment and Labor convened an employment policy review committee the previous day and selected Gwangsan District and Yeosu City in South Jeolla Province as the first designated areas. This is the first case since the system was established at the end of July.

Gwangsan District Office, Gwangju.

According to Gwangsan District and related authorities on August 20, the "Proactive Employment Crisis Response Area" system provides support equivalent to that of an "Employment Crisis Area" to regions at risk of a rapid deterioration in employment conditions, before a surge in unemployment or job losses occurs. Local employment and labor offices can apply for designation after gathering opinions from local governments and experts.

Gwangsan District has raised concerns about the possibility of widespread employment instability following the management crisis at Daewoo Winia and the large-scale fire at Kumho Tire's Gwangju plant in May, which have shaken the local economy. The incident directly affected more than 2,300 plant workers, around 160 partner companies in Gwangju, and nearby commercial districts. The district emphasized that a chain employment crisis could negatively impact the entire regional industrial ecosystem.

District Chief Park Byungkyu visited the National Assembly twice, in June and August, to urge the government and political circles to take preemptive action before the damage worsened. Through this process, the system was established, and Gwangsan District became the first designated area.

With this designation, Gwangsan District will receive various forms of support, including increased employment retention subsidies, expanded training support funds for employers, and greater access to vocational training living expenses and livelihood stabilization loans. Chief Park stated, "We have laid the groundwork for overcoming the regional economic crisis," and added, "We will strive to become a leading region for employment revitalization with the government's support."

The Citizens' Countermeasures Committee for the normalization of Kumho Tire also welcomed the decision. The committee stated, "This designation is a turning point that can prevent an employment crisis in advance, but it is not sufficient on its own." They emphasized that follow-up measures, such as implementing a special labor-management agreement, are essential, given the reality of declining employment and a sharp decrease in self-employed workers in the Honam region. The committee also pledged to support the relocation of Kumho Tire's Hampyeong plant, maintain ongoing communication with the government and related agencies, and develop employment stabilization measures through community solidarity.