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Korea designates Yeosu as 'industrial crisis response area' to support petrochemical firms

Published: 01 May. 2025, 11:46

Finance Minister Choi Sang-mok speaks during a meeting at the Government Complex Seoul in central Seoul on May 1. [NEWS1]

Korea has designated the southwestern city of Yeosu as an "industrial crisis response area" to help the ailing regional economy amid a slump in the petrochemical industry based in the area, the finance minister said Thursday.

Finance Minister Choi Sang-mok made the announcement in an economy-related ministerial meeting, vowing efforts to support petrochemical companies in the Yeosu, South Jeolla, boost investment and restore the job market there.

The government plans to inject emergency liquidity into companies suffering from weak sales and help with the petrochemical industry's research and development projects aimed at developing eco-friendly and high-value products.

Korea also plans to raise the sales threshold for companies to be considered a small- and medium-sized enterprise (SME), allowing more firms to enjoy government support for SMEs, according to Choi. The proposed change, if realized, will mark the first of its kind in 10 years.

On trade negotiations with the United States, Choi said the government will "fulfill its responsibility to the very end" to ensure that essential support is provided to export companies in a timely manner.

"Building on last week's '2+2 consultation' with the U.S. administration, we will do our utmost to prepare a 'July package' to ensure that the two sides can reach an agreement within the tariff suspension period," he said.

Last week, Seoul and Washington held a high-level trade dialogue and agreed to make joint efforts to craft a "package" agreement on new U.S. tariffs and economic cooperation issues by July 8, when the 90-day pause of U.S. President Donald Trump's administration's sweeping tariffs is set to be lifted.

Yonhap