The South Korean government will take measures to designate Gunsan as an employment crisis region a week after General Motors(GM) revealed it would shut down its factory in the western port city.

Presidential Spokesman Kim Eui-kyeom announced the decision in a media briefing on Tuesday, saying President Moon Jae-in ordered the government to draft urgent countermeasures, expressing concerns over fallout from GM’s decision on the local economy. 

Kim said that although the current economic situation in Gunsan does not meet the requirements for its designation as an employment crisis region, the government made the decision given the severity of the situation, adding it will revise related laws to make it happen. 

Once designated as an employment crisis region, Gunsan will be eligible to benefit from special job stability measures through the state-sponsored unemployment insurance system as well as special state assistance for employment projects managed by local governments. 

The spokesman added the Trade, Industry and Energy Ministry has also decided to designate Gunsan as an industrial crisis special response region that will ease the financial crunch faced by companies and people doing business in the city.