Recently, Jeonnam Province’s safety package support project for Yeosu petrochemical workers received great interest, filling its capacity of 1,780 applicants on its first day. On the 4th, Jeonnam Province announced it is taking significant steps to support its key industries, steel and petrochemicals.
Gwangyang Steel Industry and other steel sectors in Jeonnam have been pivotal to the local economy. However, they face complex challenges, including a global demand slowdown, outdated facilities, and rising costs. Recently, the U.S. imposed a 50% high tariff on steel, further threatening export competitiveness. There are concerns about a cascading economic crisis for small steel companies and their partners.
The petrochemical sector in Yeosu’s national industrial complex is also experiencing an unprecedented crisis due to U.S. protectionist measures and a global demand decrease. Last year, Yeosu’s local tax revenue dropped by 26.8% year-on-year. In May, Yeosu was designated as a proactive response region for industrial crises.
The province is accelerating the development of strategies for overcoming these crises and revitalizing industries, focusing on the Gwangyang Bay area steel belt and Yeosu National Industrial Complex’s petrochemical sector.
To address the steel industry crisis, the province is not only focusing on short-term responses but also plans to transform it into a sustainable industrial ecosystem through the “Steel Industry Transformation Mega Project.” This includes transitioning to low-carbon facilities, establishing smart manufacturing systems, nurturing high-value industries, digital manufacturing innovation, and tailored research and development (R&D).
In May, Yeosu was the first in the nation to be designated as a proactive response region for the petrochemical sector. For overcoming the petrochemical industry crisis and securing competitiveness, the province proposed 19 customized support projects totaling 370.7 billion won to the government. These include emergency management stability funds and guarantees for SMEs and small business owners, employment retention subsidies, welfare support, expanded local investment promotion subsidies, and special discounts on Yeosu local love gift certificates.
In the long term, the province plans to invest 2.6628 trillion won as part of the “Petrochemical Transformation Mega Project,” which includes establishing a carbon capture, utilization, and storage (CCUS) cluster, creating an eco-friendly chemical industry specialized complex, and developing low-carbon technology based on bio-naphtha.
For the crisis-hit workers in the steel and petrochemical industries, the province initiated projects like the New Beginning Hope Support Project for crisis workers, aiming to provide tangible help to those experiencing job insecurity.
Seo Eun-soo, the director of the province’s Employment and Investment Promotion Division, stated, “We will prepare comprehensive responses to achieve fundamental restructuring and transformation beyond temporary support, creating new growth engines for the core industries of Jeonnam’s economy, steel and petrochemicals.”