This undated file photo shows steel products manufactured at a steel mill in Gwangyang, about 350 kilometers south of Seoul. (Yonhap)
SEOUL, Nov. 20 (Korea Bizwire) – The government on Thursday designated the southern industrial city of Gwangyang as a special crisis-response zone, as its steel-dependent economy faces mounting strain from global oversupply and intensifying trade protectionism, the industry ministry said.
Gwangyang, about 350 kilometers south of Seoul, was chosen because the steel sector accounts for 88.5 percent of the city’s industrial production, 97.5 percent of exports and 9.7 percent of employment, according to the Ministry of Trade, Industry and Resources.
The city will be classified as a special zone for preemptive response to an industrial crisis for the next two years, making its local companies eligible for emergency liquidity support and low-interest policy loan programs, the ministry said.
Gwangyang is the fourth city to receive the designation this year, following Yeosu, Seosan and Pohang.
South Korea has been working to restructure the ailing steel industry, struggling amid the global supply glut and major economies’ protectionist trade policies, such as 50 percent U.S. tariffs on all steel imports and the European Union’s push for a stronger steel safeguard plan.
Earlier this month, the government unveiled a road map aimed at boosting the competitiveness of the steel industry through support for the sector’s much-needed transition to high-value and eco-friendly products.
(Yonhap)
