Gyeongnam Province Addresses Corporate Challenges to 'Aerospace Manufacturing Recovery'

Government Moves Quickly to Designate 'Special Employment Support Industry' to Maintain Aviation Workforce

[Image source=Yonhap News]

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] Gyeongsangnam-do is accelerating efforts to support the rapid recovery of the local aerospace manufacturing industry by conveying companies' difficulties to the central government and promoting domestic helicopter sales.

Gyeongnam Province listened to the challenging situations on the ground from 53 aerospace manufacturing companies suffering from the dual hardships of Boeing's B737Max production suspension and the COVID-19 pandemic.

On the 4th, Park Jong-won, Deputy Governor for Economic Affairs of the province, directly visited the central government, policy banks, and local governments to deliver industry demands such as the swift designation of the aerospace manufacturing industry as a special employment support sector, loan repayment deferrals, credit easing, expanded financial support, and increased purchases of the domestic helicopter Surion.

If the aerospace manufacturing industry is designated as a special employment support sector, additional support such as employment retention subsidies, vocational skill development training, and increased living expense loan limits will be provided.

Benefits such as extended payment deadlines for employment and industrial accident insurance premiums and health insurance premiums, as well as deferrals of delinquency measures, will be granted, which is expected to help maintain employment in the aerospace manufacturing industry.

Additionally, reflecting the characteristics of the aerospace industry, the province conveyed to the government, Financial Services Commission, and Korea Development Bank plans to expand financial support, including loan repayment deferrals and credit easing.

Since last year, the Industrial Stabilization Fund has had strict conditions such as total borrowings exceeding 500 billion KRW and more than 300 employees, resulting in no utilization by domestic aerospace manufacturing companies.

Accordingly, the province plans to expand support such as increased loan limits and loan repayment deferrals for companies verified for technological performance and competitiveness, such as those selected for the 'Innovative Companies National Representative 1000' program.

Furthermore, the province proposed to related agencies measures to ensure the effectiveness of financial support systems, focusing on easing the total borrowing criteria for the Industrial Stabilization Fund, lowering loan interest rates for partner company support programs, extending repayment periods, and relaxing credit standards.

Cho Hyun-jun, Director of the Industrial Innovation Bureau of the province, stated, "The aerospace manufacturing industry is a key core industry that we must nurture as a future industry. We will actively consult with relevant ministries to ensure the early recovery and revitalization of the aerospace manufacturing industry, which has fallen into stagnation."

This content was produced with the assistance of AI translation services.