Yeosu: South Korea has designated the southwestern city of Yeosu as an "industrial crisis response area" to bolster its struggling regional economy amidst a downturn in the local petrochemical industry, the finance minister announced Thursday. Finance Minister Choi Sang-mok unveiled the initiative during an economy-related ministers meeting, emphasizing the government's commitment to support petrochemical companies, enhance investment, and rejuvenate the job market in Yeosu, located 315 kilometers south of Seoul.
According to Yonhap News Agency, the government plans to provide emergency liquidity to companies grappling with weak sales and assist in the petrochemical sector's research and development efforts aimed at creating eco-friendly and high-value products. Additionally, South Korea intends to adjust the sales threshold for companies to qualify as small and medium-sized enterprises (SMEs), thus broadening the scope of firms eligible for government assistance. This proposed adjustment would be the first of its kind in a decade.
On the subject of trade negotiations with the U.S., Choi assured that the government is committed to ensuring essential support is delivered to export companies in a timely manner. "Building on last week's '2+2 consultation' with the U.S. administration, we will do our utmost to prepare a 'July package' to ensure that the two sides can reach an agreement within the tariff suspension period," he stated.
The previous week, Seoul and Washington engaged in high-level trade discussions and pledged to collaborate on creating a "package" agreement concerning new U.S. tariffs and economic cooperation matters by July 8. This deadline marks the conclusion of the 90-day suspension period on the sweeping tariffs imposed by U.S. President Donald Trump's administration.