The government has assessed the impact of the sluggish petrochemical industry and ongoing business restructuring on employment and the local economy in Yeosu. Officials urged companies to prioritize job retention during the restructuring process and to avoid shifting burdens onto workers and subcontractors.
The Ministry of Employment and Labor announced that Vice Minister Kwon Chang-jun visited Yeosu, Jeollanam-do, on September 30 to hold a meeting with representatives from petrochemical companies, labor unions, and small businesses.
Yeosu was designated as a preemptive response area for employment crises in August 2022 due to the downturn in the petrochemical sector. As the employment situation has not significantly improved, the designation period has been extended for another year until August 27, 2027.
In July, the 'Yeosu No. 1 Project' for restructuring the petrochemical industry was approved. While restructuring efforts are underway, concerns are growing about the potential impact on jobs for subcontracted workers and the local economy.
During his visit, Kwon met with representatives from major petrochemical companies, including Yeocheon NCC, Lotte Chemical, and LG Chem, as well as plant construction firms and subcontractors, to hear about industry trends and challenges. He also inspected the operational status of Lotte Chemical's Yeosu Plant.
Kwon stated, "The petrochemical industry has been a cornerstone of our economy, but it is currently facing unprecedented challenges due to oversupply and geopolitical tensions in the Middle East."
He added, "While restructuring is an unavoidable process for regaining competitiveness, it is crucial to ensure that the burden does not fall on workers and subcontractors. I urge companies to prioritize job retention and to pursue a cooperative approach where primary contractors and subcontractors share the burden of the crisis together."
The employment situation meeting held at the Jeonnam Yeosu Industry-Academic Convergence Center included representatives from the Korean Confederation of Trade Unions, the Korean Trade Union Confederation, the plant construction union, the chemical and food union, and the Cargo Solidarity.
Representatives from the Yeosu Small Business Association, the Merchant Association, and the Accommodation Industry Association, as well as officials from the Jeonnam Gwangju Integrated Special City and Yeosu City, also attended to discuss the employment situation and the difficulties faced by local businesses, as well as the need for government support.
Kwon emphasized, "In times of crisis, it is essential for labor and management to come together based on dialogue and trust, and for local labor-management-government partnerships to unite in a common direction to overcome difficulties." He also urged local governments to actively develop employment measures suited to regional conditions.
He concluded, "The government will not stop at current support measures but will thoroughly review the voices from the field and provide necessary assistance."
* This article has been translated by AI.
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