Two industrial complexes in Yeosu designated as special SME support zones

The designations are expected to stabilize business conditions for small and medium-sized enterprises and revitalize the local economy.

Yulchon First General Industrial Complex and Hwayangnonggong Complex have been newly designated as special SME support zones by the Ministry of SMEs and Startups.

According to Yeosu City, Yulchon First General Industrial Complex is home to companies closely tied to major industries including the Yeosu National Industrial Complex and Gwangyang Steel Mill, and has been hit by declining orders and an economic slowdown affecting those sectors.

Hwayangnonggong Complex faces similar difficulties, as plastics processors and other tenants that rely on petrochemical feedstocks have been squeezed by raw material price swings and weakening demand.

Yulchon First General Industrial Complex is particularly notable in that it spans the three cities of Yeosu, Suncheon and Gwangyang. Through Yeosu City's designation application, the entire complex — including areas under the jurisdiction of all three cities — has been brought under the special support zone designation. The designation will remain in effect for two years.

The special SME support zone system is a government-administered regime designed to help small and medium-sized enterprises in industrial clusters normalize their operations and revitalize local economies when business conditions deteriorate.

"This designation is intended to help stabilize the management of local small and medium-sized enterprises struggling with the petrochemical industry slump and sluggish domestic and overseas economic conditions, and to strengthen the competitiveness of the industrial complexes," a city official said. "Tenant companies will be able to receive a range of government support benefits in accordance with relevant laws and the requirements of each support project."