Job losses mount, local economy contracts
Yeosu has applied to the Ministry of Employment and Labor for designation as an "employment crisis zone," seeking stronger government support as a prolonged slump in the petrochemical industry fuels growing job insecurity in the region.
The city said the petrochemical downturn has led large companies to scale back new investment and maintenance projects, while some have shut down factory operations entirely. The resulting drop in daily-wage employment and declining sales among small businesses prompted the city to pursue the designation.
Yeosu had previously been designated a "preemptive employment crisis response zone" in recognition of deteriorating business conditions and worsening employment in the petrochemical sector, and had been receiving government support under that status.
The designation process begins when a local government head submits an application to the employment minister. A field investigation team then conducts an on-site review, followed by deliberation by the Employment Policy Council, before the minister issues a final decision and public notice.
Once designated an employment crisis zone, businesses in the area become eligible for employment retention subsidies, vocational training support and insurance premium assistance. Workers can access living stabilization loans, vocational training livelihood loans and the national skills development card program.
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