The Ministry of Trade, Industry, and Energy has designated Seosan in South Chungcheong Province and Pohang in North Gyeongsang Province as proactive response regions to industry crises due to global oversupply affecting key local industries. This designation will last for two years, starting from August 27, 2027.
The designation follows Seosan’s application due to structural difficulties in the petrochemical industry and Pohang’s concerns about the steel industry’s decline from global oversupply and unfair imports. The Ministry examined the applications, conducted on-site inspections, and held discussions with relevant parties.
As a result, the government will enhance support such as emergency management stabilization funds, preferential local investment promotion subsidies, and strengthened policy financial support for small businesses in these areas. Financial institutions will offer maturity extensions and payment deferrals, while guarantee programs will be launched for partners and small business owners.
A new supplementary budget for 2025 will provide interest support for loans related to the main industries in these crisis areas and also offer tailored support for corporate competitiveness and workforce development. The main financial institutions involved in the interest support are KB Kookmin Bank, IBK, NH Bank, Busan Bank, Shinhan Bank, Woori Bank, and Hana Bank. The Korea Institute for Advancement of Technology (KIAT) will oversee the implementation, with further details to be announced via the Ministry and KIAT websites.
Additionally, necessary support projects for overcoming industrial crises, including R&D, management consulting, and employment stabilization, will be reflected in the budget after 2026.