Extension Allowed for Special Industrial Crisis Response Areas... Total Designation Period Extended from 4 to 5 Years

Partial Amendment to the Enforcement Decree of the Special Act on National Balanced Development Approved at the Cabinet Meeting

Key Contents of the Partial Amendment to the Enforcement Decree of the Special Act on National Balanced Development. (Source: Ministry of Trade, Industry and Energy)

[Sejong=Asia Economy Reporter Joo Sang-don] The government has allowed the re-extension of the designation period for Industrial Crisis Response Special Zones and expanded the total designation period from a maximum of 4 years to 5 years. Accordingly, Gunsan, which was designated in April 2018 and extended once until April 2022, can now have its designation period extended again until April 2023.

The Ministry of Trade, Industry and Energy announced that the partial amendment to the enforcement decree of the Special Act on National Balanced Development was approved at the Cabinet meeting on the 30th and will take effect from the 6th of next month.

So far, the Ministry of Trade, Industry and Energy has been operating the Industrial Crisis Response Special Zone system to support regional economic recovery in response to the deterioration of local economic conditions caused by crises in main industries. Currently, six areas have been designated: Gunsan (April 2018 to April 4, 2022), Mokpo, Yeongam, Haenam, Tongyeong, Goseong, Geoje, Changwon Jinhae-gu, and Dong-gu in Ulsan (May 29, 2018 to May 28, 2021). All these areas have had their designation periods extended once. With the allowance of re-extension within a maximum of 5 years, additional extensions of the designation periods for these areas have become possible.

The Ministry plans to receive applications from local governments wishing to extend their designation periods within next month, conduct on-site inspections by industrial and regional experts (field inspection teams), evaluate industrial and economic conditions through the Regional Industry Crisis Deliberation Committee, and consult with related ministries to extend the designation periods for areas where the need for extension is recognized. For the extended areas, the Ministry will also concretize support measures together with local governments and related ministries to facilitate the prompt recovery of the regional economy.

Kim Hyun-chul, Director of Regional Economic Policy at the Ministry of Trade, Industry and Energy, said, "Through this amendment to the enforcement decree, we have improved the system, which was previously rigidly operated, to be adaptable to the industrial and economic conditions of the regions." He added, "Along with this, we are also reviewing comprehensive system improvements for full-cycle crisis response, including proactive crisis management and smooth landing support for areas whose designation periods have expired."

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