Pohang City Designated as Industrial Crisis Preemptive Response Area... Steel Industry and Local Economy Strengthen Again

Strengthening Resilience and Structural Transformation of the Steel Industry, Leading New Industrialization

Central Ministries and Gyeongbuk Province to Ensure Prompt Implementation of Measures for Establishing an Organic Cooperation System

Pohang City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Pohang City in Gyeongbuk Province has been officially designated as an ‘Industrial Crisis Preemptive Response Area’ by the Ministry of Trade, Industry and Energy, which is expected to greatly aid the reconstruction of the steel industry, a national key industry severely damaged by the typhoon, and the recovery of the depressed local economy.

In September, Typhoon ‘Hinnamnor’ caused significant damage, including the first-ever complete shutdown of POSCO’s steel mill operations in 49 years. Other steel industrial complex companies also suffered damages so severe that the total amount is incalculable, placing the entire steel industry in a critical situation.

Pohang is a steel industry city where primary metal accounts for 84.6% of manufacturing, and the steel market greatly influences the region. Recently, the steel industry has faced a global economic downturn, and the typhoon damage has dealt a serious blow, putting the local economy in a major crisis.

Accordingly, the city led the prompt designation of a special disaster area through recommendations made during President Yoon Seok-yeol’s visit to the affected region, and on September 23, together with Gyeongbuk Province, applied to the Ministry of Trade, Industry and Energy for designation as an Industrial Crisis Preemptive Response Area to facilitate early normalization of the steel industry and establish a preemptive response system.

The Ministry of Trade, Industry and Energy also recognized the severity of the damage and responded swiftly. Following a meeting of related ministries on September 27, a joint inspection team conducted an on-site inspection in Pohang on the 28th, and a working-level meeting between the ministry and Pohang City was held on October 6. The area was designated as an Industrial Crisis Preemptive Response Area on the 31st.

With this designation, financial support such as maximum emergency management stabilization funds, loan maturity extensions, and repayment deferrals will be provided, and the basic support rate for local investment promotion subsidies will be adjusted to the same level as that of special industrial crisis response areas.

The designation period is two years, from October 31, 2022, to October 30, 2024.

To strengthen the resilience of the steel industry, promote structural transformation, and foster new industries, plans include ▲support for companies overcoming crises ▲establishment of disaster prevention infrastructure in steel industrial complexes ▲short-term R&D and commercialization ▲enhancement of competitiveness in steel industrial complexes. The support details will be finalized after budget approval during the National Assembly review process.

The city and province expect that this Industrial Crisis Preemptive Response Area designation will provide an opportunity for Pohang’s steel industry, which has led Korea’s economic development, to overcome difficulties, regain vitality, and make a leap forward. They plan to mobilize all administrative capabilities for swift and smooth recovery by establishing close cooperation with central government agencies and actively securing budgets.

A representative from the steel industrial complex stated, “Despite suffering enormous damage, companies have not received direct damage support such as disaster relief funds, and they earnestly hope for practical support including facility and equipment restoration and labor cost assistance.” He added, “We look forward to the revitalization of the local steel industry and economy as soon as possible through the designation as an Industrial Crisis Preemptive Response Area.”

Governor Lee Cheol-woo played a decisive role immediately after the typhoon by swiftly deploying large-capacity water cannons on-site to rescue lives in apartment underground parking lots and minimize POSCO’s flood damage. He also took the lead in overcoming Pohang’s crisis by recommending the Industrial Crisis Preemptive Response Area to President Yoon Seok-yeol during the 9th Emergency Economic and Livelihood Meeting held in Sangju.

Mayor Lee has emphasized the urgency and necessity of the prompt designation of the Industrial Crisis Preemptive Response Area by meeting consecutively with local political figures such as National Assembly members Kim Jeong-jae and Kim Byung-wook, People Power Party floor leader Joo Ho-young, Deputy Prime Minister for Economy Choo Kyung-ho, Minister of Trade, Industry and Energy Lee Chang-yang, and members of the National Assembly’s Industry and Trade Committee.

Mayor Lee Kang-deok of Pohang said, “With this designation as an Industrial Crisis Preemptive Response Area, I hope it will help ease the burden on steel complex companies and citizens who suffered astronomical typhoon damage, allowing this national key industry to remain stable and regain its footing.” He added, “We plan to establish an all-out response system in close consultation with the central government and Gyeongbuk Province to ensure that urgent support projects proceed smoothly.”

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