- First designation of its kind in the nation
- Intensive two-year support for R&D and employment stability signals a positive outlook for regional economic recovery

Yeosu City has been designated as a “Proactive Industrial Crisis Response Zone,” marking the first such designation in the nation aimed at preemptively addressing a local industrial crisis.

According to Yeosu City, on May 1, the Ministry of Trade, Industry, and Energy held a deliberation committee meeting chaired by the Minister on April 30. It officially confirmed Yeosu’s designation as a Proactive Response Zone.

As a result, Yeosu will benefit from enhanced policy-based financial support for local partner companies and small businesses, along with preferential access to Emergency Management Stabilization Funds and Local Investment Promotion Subsidies.

Additionally, policy-based financial institutions will offer maturity extensions and repayment deferrals to partner companies and small businesses. Meanwhile, the Korea Credit Guarantee Fund (KODIT) and Korea Technology Finance Corporation (KOTEC) will launch preferential guarantee programs for partner companies. To facilitate proactive support, officials at these institutions will be granted immunity from liability for decisions made without intentional misconduct or gross negligence.

Furthermore, various support programs necessary to overcome the industrial crisis—including R&D, management consulting, and employment stability—will be actively incorporated into budgets from 2026 onward.

Separately, in-depth discussions are underway between Jeollanam-do and central government ministries regarding 16 key proposals submitted by businesses, which include legal and institutional improvements.

Earlier, on March 13, Jeollanam-do applied to the Ministry of Trade, Industry, and Energy in response to Yeosu City’s request for designation, citing “serious concerns over a potential downturn in Yeosu’s regional economy.” Following this, the Ministry conducted an on-site inspection in Yeosu on March 24, held working-level consultations with relevant ministries and local governments, and finalized the designation through the Industrial Crisis Response Deliberation Committee on April 30.

Yeosu City anticipates that this designation will play a vital role in revitalizing its petrochemical industry—currently struggling due to the global economic slowdown and oversupply—and in promoting employment stability across the local community.

Moving forward, the city plans to fully leverage government support to strengthen the technological competitiveness of its petrochemical sector and improve industrial infrastructure. In the long term, it will also pursue various initiatives to diversify the local economy.

Mayor Jung Gi-Myoung of Yeosu City expressed his appreciation, stating, “We welcome and sincerely thank the government for this designation. With the government’s proactive support, we will do our utmost further to enhance the competitiveness of Yeosu’s petrochemical industry and inject much-needed vitality into the region’s stagnant economy.”

He added, “We will use this designation as a Proactive Industrial Crisis Response Zone as a crucial stepping stone to overcome our current economic challenges and secure new growth engines.”