It was reported on the 13th that the government is seriously considering designating Gwangsan District of Gwangju and Yeosu City in South Jeolla Province as the 'first employment crisis preemptive response region.' The preemptive response region is a system in which the government provides employment stability support to areas where there are concerns about a rapid deterioration in employment conditions. The preemptive response regions are expected to be finalized at a meeting of the Employment Policy Review Committee involving government and private members as early as the 21st.
Gwangsan District of Gwangju experienced significant challenges in May, including a large fire at the Kumho Tire Gwangju plant and a chain bankruptcy of DAEYU affiliates. Additionally, Yeosu City faced issues such as reduced orders from large corporations, layoffs of day laborers, and an increase in small business closures due to the stagnation of the petrochemical industry within the Yeosu National Industrial Complex.
Both regions have met at least one of the conditions necessary to be designated as an employment crisis preemptive response region: ▲ An unexpected suspension of operations occurring or anticipated in more than 10% of all business sites in the area ▲ The number of insured persons in the main industry declining for three consecutive months compared to the same month of the previous year ▲ At least one restructuring plan affecting more than 10% of regular employees in corporations with more than 300 employees.
If designated as an employment crisis preemptive response region, support measures including employment maintenance grants, training support for employers, the National Tomorrow Learning Card, employment support programs for the public, living expenses loans for vocational training, living stability fund loans, and loans for unpaid workers' living expenses will be provided for up to six months.
The employment crisis preemptive response regions have been in effect since the 31st of last month. Previously, while the employment crisis regions system was in operation, there were only eight designations since 2018, raising concerns about insufficient employment stability support.