Governor Kim Taeheum: "We Will Give the Steel Industry Room to Breathe...
Rebuilding Industrial Competitiveness Through AI and Green Transformation"
Chungnam Province has launched a comprehensive effort to revive the Dangjin steel industry, which is facing a crisis due to the downturn in the steel market and the trade shocks between the United States and China.
On November 17, Governor Kim Taeheum held the '9th On-Site Economic Situation Inspection Meeting' at KG Steel, a steel company in Dangjin, and stated, "We will secure the designation of 'Industrial Crisis Preemptive Response Area' within this year to significantly ease the financial difficulties of companies." He presented a 674 billion won industrial complex transformation strategy and the transition to AI and green steel as the key solutions.
On this day, the provincial government reported its 'Support Plan for Enhancing the Competitiveness of Aging Industrial Complexes and the Steel Industry,' announcing that it would complete the process of designating Dangjin as an 'Industrial Crisis Preemptive Response Area' within this year. This is in response to external challenges such as low-priced Chinese supply and the United States imposing a 50% tariff.
If designated as a preemptive response area, various forms of support will be available, including 1 billion won in business stabilization funds from the Korea SMEs and Startups Agency, 70 million won from the Small Enterprise and Market Service, extensions of loan maturities and principal repayment deferments, and preferential treatment for local investment promotion subsidies.
To counter the impact of U.S. tariffs, the province has already implemented policies to ease the burden on companies, such as providing 100 billion won in financial support for export companies, expanding trade insurance support from 350 to 1,350 companies, and developing export markets by utilizing overseas offices and trade advisors.
Additionally, the province plans to strengthen support for aging industrial complexes and gradually enhance the competitiveness of 81 out of the total 129 complexes that are over 20 years old.
In particular, for the Dangjin-Asan National Industrial Complex (Bugok District), a total of 674 billion won will be invested by 2028 to implement 33 detailed projects, including the transition to green steel and future mobility, support for industries based on digital transformation (DX), and the expansion of residential and welfare infrastructure for workers.
Furthermore, to facilitate the transition to a smart green industrial complex, an integrated control center and smart logistics and energy platforms will also be established.
In addition, by 2030, the province will enhance transportation, housing, and cultural infrastructure, and through a 166 billion won worker welfare facility project, will create 10 youth complex cultural centers and 400 worker dormitory units. Support will also be provided for dormitory and commuter bus rental fees.
Next year, 33.3 billion won will be invested in the maintenance of basic infrastructure within industrial complexes, such as parking lots, wastewater treatment facilities, and stormwater pipelines. By 2030, 300.9 billion won will be allocated to supply industrial water to 31 complexes.
To achieve the goal of installing 1,524 MW of solar power in industrial complexes, the province will newly implement a 9.32 billion won support program next year for the installation of self-consumption solar power systems.
At the meeting, Governor Kim Taeheum stated, "Overcoming the crisis in Dangjin's steel industry is our top priority, and we will make every effort to provide support," adding, "We will mobilize all available resources to ensure Dangjin is designated as an Industrial Crisis Preemptive Response Area by the end of the year."
He also mentioned Chungnam's artificial intelligence (AI) transformation, emphasizing, "The AI digital transformation of the steel manufacturing industry is absolutely necessary," and added, "The province will actively work to establish the foundations for industrial growth, including green steel, digital transformation, and housing supply."
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