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Gov't Designates 6 Areas as Employment Crisis Zones

Written: 2018-04-05 14:46:08Updated: 2018-04-05 17:02:03

Gov't Designates 6 Areas as Employment Crisis Zones

Anchor: As major corporate restructuring efforts and downsizing throughout the country take a toll on industrial cities and their workers, the government designated six areas as "crisis zones," rolling out various measures to support local workers and businesses.
Oh Sooyoung has this report.

Report: The government designated six areas, which have fallen under hard times due to the restructuring of shipbuilding and auto industries, as employment crisis zones. 

The labor ministry announced on Thursday that the government designated the cities of Gunsan, Geoje and Tongyeong as well as Goseong county and districts in Changwon and Ulsan. 

The government also designated Gunsan as a special region for industrial crisis response and extended special state assistance for employment projects for shipbuilding industries. 

This comes after U.S. automaker General Motors announced in February its decision to shut down its Gunsan plant, citing poor performance and a lack of sales.

The North Jeolla city had already been suffering from layoffs, following the closure of a shipyard operated by Hyundai Heavy Industries last year.

Under the government's job stability measures, the six crisis-designated regions will be able to benefit from programs including a state-sponsored unemployment insurance system as well as assistance for local employment projects.  

The government will further provide 200 billion won in financial support to supply liquidity for small businesses and subcontractors.

It will also provide corporate and income tax exemptions for five years to start-ups within the designated regions -- and more than double facility investment support for such companies. 

To make these measures possible, Finance Minister Kim Dong-yeon said the government will include urgent tasks in the supplementary budget bill, and also seek to include in the budget bill 250 billion won to prepare for uncertain situations such as additional designations of employment crisis zones.
Oh Sooyoung, KBS World Radio News.

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