Preemptively Responding to the Steel Shock: Pohang Urges Ministry of Employment and Labor for Prompt Designation as "Preemptive Employment Crisis Response Area"

Proactive Response to Steel Industry Slowdown and Employment Instability, Urging Swift Government Action
Dual-Track Approach Linking Industry and Employment... Strengthening Support for Both Companies and Workers

Pohang City has taken proactive measures to prevent employment instability caused by the slowdown in the steel industry and uncertainties in international trade.

On November 6, the city strongly urged the Ministry of Employment and Labor for the prompt designation of Pohang as a "Preemptive Employment Crisis Response Area."

The "Preemptive Employment Crisis Response Area" system, as defined by the official guidelines on the designation criteria for such areas, is designed to preemptively designate and support regions at risk of a rapid deterioration in employment conditions.

For designation, the head of the local employment and labor office gathers opinions from local governments and experts, then recommends the designation to the Minister of Employment and Labor. The Minister then decides on the designation through the Employment Policy Deliberation Committee, with the designation period lasting up to six months.

The city believes that, as the downturn in the steel industry leads to reduced factory operations and workforce downsizing, and as pressure mounts on partner companies and small and medium-sized enterprises, any delay in designation could result in negative ripple effects such as forced layoffs, the outflow of core skilled workers, and a chain of failures among partner firms, further deepening the local economic downturn.

Accordingly, the city emphasized that what is needed now is speed and certainty in the designation process, and that a swift decision by the central government will be a critical turning point for employment stability in the region.

If designated, requirements for support such as employment retention subsidies, vocational competency development projects, and livelihood stabilization loans will be eased, and the level of support expanded. Together with the "Preemptive Industrial Crisis Response Area" designated in August, this is expected to significantly contribute not only to employment stability for steel companies and workers, but also to mitigating the economic shock to the region.

Mayor Lee Kangdeok stated, "Pohang needs a dual safety net to support both industry and employment," adding, "The city will focus its administrative capabilities on overcoming the crisis in the steel industry, which is the backbone of the nation, and achieving stability in local jobs."

Pohang City Hall.