Application of "Regional Employment Promotion Subsidy"
Expected to Ease Corporate Labor Cost Burden
The designation period for Gwangsan District in Gwangju as a "Preemptive Employment Crisis Response Area" has been extended by six months. With the extension of the designation and the new application of the "Regional Employment Promotion Subsidy," employment support benefits, including wage support for companies, will be expanded.
On February 13, Gwangsan District announced that, as a result of the Ministry of Employment and Labor's "Second Employment Policy Deliberation Committee of 2026," the designation period as a "Preemptive Employment Crisis Response Area" has been extended until August 27.
Since being designated in August last year as the nation's first "Preemptive Employment Crisis Response Area," Gwangsan District has focused on maximizing the impact of government support through on-site, hands-on administration. Ahead of the expiration of the designation period, the district held meetings with local economic stakeholders to listen to their difficulties and, based on this, formally requested an extension of the designation from the central government.
Currently, traditional manufacturing sectors in Gwangsan District, such as home appliances and tires, are experiencing difficulties. The district expects that this extension of the designation will help the local economy recover and stabilize employment.
Along with the extension, support programs have also been expanded. The "Regional Employment Promotion Subsidy," which previously applied only to officially designated "Employment Crisis Areas," will now newly apply to "Preemptive Employment Crisis Response Areas" as well.
Accordingly, business owners who relocate their workplaces within Gwangsan District, or build new factories or expand existing ones and hire local residents as new employees, will be eligible for wage support. The level of support is one-half of the employee's regular monthly wages (one-third for large enterprises).
Gwangsan District Mayor Park Byunggyu said, "This extension of the designation is the result of joint efforts with local economic stakeholders," adding, "We will carefully implement the expanded support policies to minimize employment shocks and focus on stabilizing jobs."
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