The government has newly designated Gwangyang-si in Jeollanam-do as a Preemptive Employment Crisis Response Area, as employment is expected to slow due to sluggish performance in key industries such as steel and petrochemicals, and has decided to extend the designation period for Yeosu-si and Gwangsan-gu in Gwangju by six months.
On February 12, the Ministry of Employment and Labor held the "2026 2nd Employment Policy Council" at the Government Complex Seoul and reviewed and approved regional employment support measures reflecting these decisions, as well as the list of tasks to be subject to the 2026 Employment Impact Assessment.
In this decision, Gwangyang-si was assessed as having deteriorating employment conditions. Although steel and related industries form the core of its industrial structure, the number of employment insurance subscribers in related sectors has declined for more than three consecutive months due to the recent downturn in the steel industry.
In Yeosu-si, the prolonged slump in the petrochemical industry has continued to reduce the number of employment insurance subscribers in that sector, and the scale of the decline has widened compared with the time of the initial designation. Gwangsan-gu in Gwangju is also experiencing a continued decrease in employment insurance subscribers in the "household appliance manufacturing industry" due to the downturn in the home appliance sector, and, following the fire at Kumho Tire, the number of employment insurance subscribers in the "rubber products manufacturing industry" has also shifted to a downward trend.
Previously, on February 5, the Ministry of Employment and Labor revised the relevant public notice to extend the maximum designation period for Preemptive Employment Crisis Response Areas from the existing six months to one year, and to allow existing designated areas to have their designation extended by up to six months.
Once designated as a Preemptive Employment Crisis Response Area, a region becomes eligible for preferential treatment in terms of requirements and levels of support for Employment Retention Subsidies, Vocational Competency Development Support Programs, and livelihood stabilization loans. In addition, as the coverage of the Regional Employment Promotion Subsidy has been expanded to include Preemptive Employment Crisis Response Areas, business owners who relocate, expand, or newly establish operations in these areas and hire local residents can receive support equivalent to between one-third and one-half of employees' monthly ordinary wages.
At the council meeting on the same day, 11 tasks to be subject to the 2026 Employment Impact Assessment were also finalized. By category, there are 5 tasks in promising industrial fields such as AI, 2 tasks in demographic structure fields such as foreign worker employment, and 4 tasks in regional policy fields such as youth employment and the social economy.
Major tasks include "The employment impact of the Smart Manufacturing Innovation Support Project (Smart Factory)," "The employment effect of the core AI talent development project," "The impact on rural employment of policies to expand foreign public seasonal workers," and "The employment impact of youth employment policies in Busan Metropolitan City."
Minister of Employment and Labor Kim Younghoon stated, "For regions where the potential for employment slowdown is emerging, we will provide earlier, tailored support through the Preemptive Employment Crisis Response Area system," adding, "We will strengthen the management function of regional employment policies so that employment shocks do not escalate."
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