Gunsan economic zone receives tax and other support for another year

All News 11:36 March 31, 2022

SEOUL, March 31 (Yonhap) -- The government decided to designate the southwestern city of Gunsan as an emergency response zone for another year to provide job support and tax incentives following the 2018 shutdown of a General Motors' plant, the industry ministry said Thursday.

In April 2018, the government designated the city as a "special industrial crisis response zone" for two years, as the U.S. carmaker shut down its underutilized plant there just months after Hyundai Heavy Industries Co. closed its shipyard in the city.

The government had extended the support period for two more years in 2020, so the designation was supposed to expire next month.

But auto parts makers and the shipyard's subcontractors still experienced difficulties in maintaining production and employment. The COVID-19 pandemic has also affected consumption and the overall economic situation, according to the Ministry of Trade, Industry and Energy.

Under the measure, those who lost jobs are eligible for government subsidies and job training, and companies that newly start businesses in the city can get tax exemptions and other incentives.

The government has also been working on a project to make an industrial site for electric vehicles on and around the former GM plant.

Starting next year, Hyundai Heavy plans to resume the operation of the shipyard in the city.

"Along with existing measures, the government will seek additional ways and budget in consultation with the city and the North Jeolla Province government to extend utmost support for its economic recovery," the ministry said.

A city or a region can be designated as a special crisis response zone for up to five years.