Kwon Hyangyeop Proposes “All-Cycle Regional Industrial Crisis Response Act”

Fast-Track Procedure Introduced for Upgrading from Preemptive Response Region to Special Industrial Crisis Response Region

Kwon Hyangyeop, a member of the National Assembly from the Democratic Party of Korea (representing Suncheon-Gwangyang-Gokseong-Gurye in South Jeolla Province), has sponsored the “Partial Amendment to the Special Act on Regional Industrial Crisis Response and Regional Economic Recovery” (the amendment to the Regional Industrial Crisis Response Act), which aims to comprehensively overhaul the crisis response system for regional industries throughout the entire cycle.

Under the current law, the Ministry of Trade, Industry and Energy (hereinafter referred to as the Ministry of Industry) is required to designate areas as either “Preemptive Response Regions for Industrial Crisis” or “Special Industrial Crisis Response Regions” upon application from local governments, in order to address the deterioration of local industries and economic conditions.

Hyangyeop Kwon, member of the Democratic Party of Korea.

However, there have been ongoing concerns that, even if the industrial crisis worsens in a Preemptive Response Region, the lack of a swift procedure to upgrade the designation to a Special Industrial Crisis Response Region results in missing the optimal timing for support programs.

Additionally, after the designation as a Special Industrial Crisis Response Region expires, there is no legal basis for necessary follow-up support, which has been cited as a reason for the weakened resilience of local industries.

To address these institutional gaps and establish an “all-cycle system” for responding to regional industrial crises, the proposed amendment focuses on introducing a fast-track procedure for upgrading from a Preemptive Response Region to a Special Industrial Crisis Response Region, as well as establishing a follow-up support system after the expiration of the special designation.

Kwon Hyangyeop stated, “When a regional industry faces a crisis, the most important factor is the speed of support,” emphasizing, “Institutional improvements are urgently needed to ensure that the window for support in regional industrial crises is not missed.”

She further stressed, “Industrial crisis response must operate throughout the entire cycle, from the initial stage to the final recovery phase. By filling in the ‘gaps’ in the designation procedures and eliminating the ‘vacuum’ in follow-up support, we will fundamentally strengthen the resilience of regional industries.”

Meanwhile, on November 20, 2025, the Ministry of Industry designated Gwangyang City as a Preemptive Response Region for Industrial Crisis for two years, from November 20, 2025, to November 19, 2027, citing concerns over the worsening steel industry and the need for preemptive action. Accordingly, the government plans to provide preemptive support measures such as emergency management stabilization funds, preferential local investment promotion subsidies, and policy financial support for small and medium-sized enterprises.

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