Industry ministry says regional crisis amendments clear parliament

The industry ministry said parliament on Thursday passed amendments to a law on regional industrial crises and local economic recovery that would speed applications for special crisis designations when a region's main industry weakens.

Regions given a preemptive industrial-crisis response designation could not seek special status until a decline in their main industry had damaged the wider local economy.

Under the new fast track, a region could seek the special designation under relaxed requirements if its main industry worsens sharply after receiving the preemptive designation.

The amendments would also establish a local economy stabilization phase for regions whose recoveries remain slow after their special designation expires. Previously, officials could only extend the designation or lift it after evaluating local recovery. The bill will be sent to the government for Cabinet approval and promulgation, and the ministry said it will prepare subordinate regulations for its implementation.

For companies in industrial-crisis areas, the ministry plans to strengthen loan support through interest-cost subsidies. It will raise guarantee limits offered through the Korea Credit Guarantee Fund to 1.5 billion won ($1.08 million) from 300 million won and cut guarantee fees by 0.2 percentage point. Details will be provided in a revised September notice for the interest-cost subsidy program.