Pohang Faces "Employment Red Alert" as Proactive Employment Crisis Response Area Designation Set for the 18th

Employment Retention Subsidies, Vocational Training, and Livelihood Stabilization
Easing the Burden on Workers and Businesses Expected
Steel Industry Downturn and Employment Instability Addressed Proactively
Special Employment Stabilization Measures in Place for Six Months

On November 18, the city of Pohang was officially designated as a "Proactive Employment Crisis Response Area" by the Ministry of Employment and Labor.

With the government's commitment to intensive support, there are expectations for employment stability across Pohang's depressed industrial ecosystem and for the inflow of new investments.

The designation period is six months, during which both workers and businesses will be eligible for expanded employment support and relaxed qualification requirements.

The "Proactive Employment Crisis Response Area" system is a policy that preemptively designates regions at risk of a sharp deterioration in employment, according to the "Notice on the Criteria for Designation of Proactive Employment Crisis Response Areas," and provides employment stabilization measures in advance.

Pohang City determined that, due to the recent downturn in the steel industry, factory operations have been reduced and workforce downsizing has continued, and that these impacts are spreading to partner companies and local small and medium-sized enterprises, increasing employment instability.

To proactively address this, Pohang City actively pursued the designation as a "Proactive Employment Crisis Response Area." During this process, the Pohang City Council, local National Assembly members, and North Gyeongsang Province worked closely together by sharing related issues and making recommendations, thereby supporting the designation effort.

With this designation, local workers and businesses will receive tangible benefits such as expanded support programs and eased eligibility requirements.

Key support measures for workers include: ▲ expansion of the "Tomorrow Learning Card" for vocational training expenses (from 3 million won to 5 million won); ▲ increased living stabilization loans (from 20 million won to 25 million won); ▲ increased livelihood loans for workers with unpaid wages (from 10 million won to 15 million won); ▲ increased vocational training living expense loans (from 10 million won to 20 million won); and ▲ exemption from income requirements for the National Employment Support System (Type II) (from 100% of median income to exemption for those who resigned within three months prior to the designation date).

For businesses, benefits include an increase in employment retention subsidies (from 66.6% to 80% of leave-of-absence pay) and an increase in employer vocational training support (from 100% to 130% of training cost per capita).

These support benefits are only available to those who apply during the designation period. The city plans to actively inform employers, workers, and citizens by producing and distributing informational brochures, holding briefings, and conducting online promotions.

Following its designation as an "Industrial Crisis Proactive Response Area" in August, Pohang now has a dual safety net supporting both industry and employment with this new "Proactive Employment Crisis Response Area" status.

The city plans to leverage this designation as a foundation to secure additional national and provincial funding. Previously, when designated as an "Industrial Crisis Proactive Response Area," Pohang requested a 5 billion won budget allocation from the Ministry of Employment and Labor and a 7.3 billion won increase from the National Assembly. Based on this, the city will focus on discovering and expanding related national and provincial projects for employment retention, career transition support, vocational training, and livelihood stabilization.

The city also stated that it will closely coordinate with the Ministry of Employment and Labor, central government agencies, and North Gyeongsang Province on public recruitment and job creation projects to develop more tailored and robust employment stabilization policies for the region.

Mayor Lee Kangdeok said, "This designation is an important milestone in further strengthening Pohang's industrial and employment safety nets," adding, "We will actively support workers and businesses facing employment instability so they can experience real benefits, and we will secure national and provincial funding to ensure more resources are devoted to regional employment stability."

Based on this designation, Pohang City plans to minimize employment shocks amid the economic slowdown and contribute to local economic recovery and the creation of sustainable jobs.

Pohang City Hall.