Considering Difficulties in Steel and Petrochemical Industries
"Manufacturing Downturn Continues... A Grave Situation"
The government has newly designated Pohang in North Gyeongsang Province and Seosan in South Chungcheong Province as Employment Crisis Preemptive Response Areas, following Yeosu and Gwangsan District in Gwangju.
The Ministry of Employment and Labor held the 4th Employment Policy Council of the year from November 14 to November 18, 2025, and reviewed and approved the new designation of these two regions as Employment Crisis Preemptive Response Areas. This decision was made out of concern for employment stagnation, as the main industries in these regions-steel in Pohang and petrochemicals in Seosan-are facing difficulties due to increased global supply, sluggish domestic demand, and growing environmental uncertainty.
Kim Younghoon, Minister of Employment and Labor, is speaking at the 3rd Employment Policy Council held last August. Photo by Ministry of Labor
The Employment Crisis Preemptive Response Area system was newly established in July 2025 to overcome the limitations of the existing Employment Crisis Area system, which could only respond after employment shocks were reflected in indicators, making preemptive action difficult. Previously, in August, the Ministry of Employment and Labor held the 3rd Employment Policy Council and designated Yeosu and Gwangsan District in Gwangju as the first Employment Crisis Preemptive Response Areas.
Employees, unemployed individuals, and self-employed people in Pohang and Seosan will now see increased support limits for the National Tomorrow Learning Card, higher tuition support rates, and expanded vocational training living expense loans. Unemployed individuals can participate in the National Employment Support System regardless of their income level. Business owners will receive preferential support rates for employment retention subsidies and employer-led vocational competency development programs.
Kim Younghoon, Minister of Employment and Labor, stated, "Recently, the prolonged downturn in major manufacturing sectors such as steel and petrochemicals has been caused by both domestic and international uncertainties," adding, "The employment situation in these regions is extremely serious." He continued, "We will actively support employment recovery in Employment Crisis Preemptive Response Areas," and pledged, "We will also monitor employment conditions in other regions to detect crises in a timely manner and respond swiftly."
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