Petrochemical sector recovery delayed; city pursues 6-month extension to shore up jobs and regional economy

Ulsan is seeking an extension of the Ministry of Employment and Labor's "preemptive employment crisis zone" designation for the city's Nam-gu district to stabilize jobs in the local petrochemical industry. Pictured is the Ulsan-Mipo Industrial Complex. [Provided by SK Energy]
Ulsan is seeking an extension of the Ministry of Employment and Labor's "preemptive employment crisis zone" designation for the city's Nam-gu district to stabilize jobs in the local petrochemical industry. Pictured is the Ulsan-Mipo Industrial Complex. [Provided by SK Energy]

Ulsan is pushing to extend the "preemptive employment crisis zone" designation covering its Nam-gu district before the current term expires, aiming to stabilize local employment and restore industrial competitiveness. The Ministry of Employment and Labor granted the designation in January.

Under the designation, Nam-gu secured 2 billion won ($1.3 million) in national funding to support petrochemical-sector companies and workers through July 11. The funds have been used to ease corporate operating burdens and preserve jobs, covering employment retention subsidies and job-placement assistance, among other programs.

The petrochemical sector's recovery has stalled, however, and employment uncertainty persists amid a global economic slowdown and structural shifts in the industry.

In response, Ulsan is in talks with the Ulsan branch of the Ministry of Employment and Labor on a plan to extend the designation by six months.

To trigger the extension process, the Ulsan branch director must submit a formal recommendation to the ministry. The ministry's Employment Policy Deliberation Council then reviews and decides on the request.

"Continued support for employment stability is needed given the delayed recovery in the petrochemical sector," a city official said. "We will do our utmost to secure the extension."


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