Incheon's Jeomulpo-gu has turned to the central government for help as the district's core steel industry struggles with deepening financial difficulties.
Jeomulpo-gu, together with Incheon city, submitted an application to the Ministry of Trade, Industry and Energy on Monday seeking designation as a "preemptive industrial crisis response zone."
The application comes as local steelmakers face a mounting set of headwinds — a prolonged slump in the construction sector, tightening US steel tariffs and rising industrial electricity rates — that have pushed many firms to the brink.
If the government grants the designation, a range of support measures would be rolled out over two years: emergency business stabilization funds and policy financing benefits; research and development and commercialization support; and employment stability and job-transition assistance for workers.
Jeomulpo-gu has already taken several steps to keep the steel sector's troubles from spreading to the broader local economy, including holding industry roundtables to gather on-the-ground opinions, temporarily expanding interest subsidies under special guarantee programs for small and medium-sized enterprises and small business owners, and organizing a district-wide petition drive.
The Ministry of Trade, Industry and Energy will make a final decision on the designation after consulting related ministries, conducting a field inspection and obtaining approval from a review committee.
"The steel industry is the backbone of our local economy and employment," Jeomulpo-gu District Mayor Kim Chan-jin said. "Acting before the crisis fully takes hold is paramount, and we will work closely with Incheon city, the Ministry of Trade, Industry and Energy and other relevant agencies to secure the designation."
gilbert@heraldcorp.com
