INCHEON -- The Incheon Metropolitan Government is petitioning the central government to designate its Dong-gu district as a preemptive employment crisis response zone. The request follows Hyundai Steel's decision to shut down half of its rebar production facilities at its Incheon plant, deepening the employment crisis in the local steel industry.
The city announced on the 26th that it recently convened an emergency session of the first Incheon Employment Council to deliberate and approve the proposal for designating Dong-gu as a preemptive employment crisis response zone. Incheon plans to submit the petition to the Central Regional Employment and Labor Office. Final designation will be determined after review by the regional office and deliberation by the Ministry of Employment and Labor's Employment Policy Council.
Dong-gu is a core hub for the domestic steel industry, home to major steelmakers including Hyundai Steel and Dongkuk Steel. However, the district faces compounding challenges: an influx of low-priced imported steel, prolonged construction sector downturn, rising industrial electricity rates, spreading global protectionism, and U.S. steel tariffs. Operating rates for major steel products fell by up to 23 percentage points year-over-year as of the third quarter of last year. The number of insured workers in Dong-gu's primary steel manufacturing sector has also declined for six consecutive months compared to the same period last year.
Incheon reviewed the designation requirements under the Framework Act on Employment Policy, examining whether the district has a dominant industry, faces deteriorating employment conditions, and shows declining insured worker numbers. Officials from employment-related agencies and experts attended the council meeting and determined that Dong-gu meets the relevant criteria.
If designated as a preemptive response zone, Dong-gu would receive benefits for up to 12 months. These include relaxed requirements for employment retention subsidies, enhanced support for vocational development programs such as the Tomorrow Learning Card, and increased access to living stabilization loans.
"The steel industry in Dong-gu is a core pillar of Incheon's manufacturing sector and a foundational industry for the regional economy. The current crisis goes beyond a simple economic slowdown—it reflects a complex situation driven by structural industrial transition," said Kim Sang-gil, Director of Economic and Industrial Affairs for Incheon. "Swift government designation and substantive support are needed before the employment shock spreads throughout the region."
He added, "Even after designation, we will provide parallel support for companies' employment retention efforts and worker protection while working closely with the Central Regional Employment and Labor Office and the Ministry of Employment and Labor."