Jeonbuk Province Confirms 2-Year Extension for Gunsan Industrial Crisis Response Special Zone

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Jeonbuk Province announced on the 11th that the designation period for Gunsan, where the special industrial crisis response area designation is set to expire next month, has been extended for two years following the Industrial Competitiveness Enhancement Ministers' Meeting.

Due to the prolonged economic stagnation in the shipbuilding and automobile industries and the local economy following the suspension of operations at the Gunsan shipyard (July 1, 2017) and the closure of the GM Gunsan plant (May 30, 2018), the province applied for an extension of the designation period to the Ministry of Trade, Industry and Energy on February 7.

The province, together with the Jeonbuk Research Institute and the Korea Institute for Industrial Economics & Trade, conducted a thorough analysis of economic indicators for Gunsan City and gathered opinions from the field to publicize the extension of the special industrial crisis response area designation. They focused on building consensus by continuously proposing the extension in advance through visits to government ministries, the Prime Minister’s on-site briefing for the special industrial crisis response area, meetings between the Chief Presidential Secretary for Economic Affairs and hydrogen car companies, and the Deputy Prime Minister for Economy.

Following the province’s extension request, the Ministry of Trade, Industry and Energy conducted on-site inspections, consultations with the Regional Industrial Crisis Deliberation Committee and related ministries, and the Industrial Competitiveness Enhancement Ministers' Meeting before deciding to extend the designation.

Through the extension, tax support for new investments by small and medium-sized enterprises and mid-sized companies within the crisis area will be maintained, and package support including financial, tax, and location incentives for attracting new companies will continue.

Additional support projects requested from the central government to improve the economic situation and establish a foundation for regional development will be decided later, and the provincial government plans to focus its capabilities on promoting these through continuous consultations with related ministries.

Governor Song Ha-jin expressed gratitude for the government’s decision to extend the special industrial crisis response area designation for Gunsan, which brought a spark of hope to the region’s rigid economy affected by the delayed recovery of the automobile and shipbuilding industries and the COVID-19 pandemic. He stated, “We will make the most of this opportunity by joining forces with the residents to do our best until the very last moment to overcome the economic crisis and the shock of regional economic devastation in Gunsan. We will tirelessly refine and improve the industrial structure for the future to ensure that we never again endure the painful experience of being designated as a special industrial crisis response area for a second time.”

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