The government has extended the designation of industrial crisis zones for five local areas by two years.

The Ministry of Trade, Industry and Energy said on Tuesday that the designation for Ulsan, Tongyeong, Geoje, Changwon in Gyeongsang Province and Mokpo in Jeolla Province will be extended by two years to May 28th 2021. 

Those shipbuilding cities were designated as crisis zones in May of last year, largely in response to a slump in the shipbuilding industry.

A designated crisis zone is eligible for special government subsidies such as low-cost loans and financial support for the unemployed. 

The ministry said the extended designation is needed due to the delayed economic recovery in the regions even though major shipbuilders based in the areas are securing new contracts. It added that the government will use funds from the supplementary budget if necessary.