Gwangyang: The government has designated the southern industrial city of Gwangyang as a special crisis-response zone due to its steel-dependent economy facing mounting pressures from global oversupply and intensifying trade protectionism, the industry ministry announced.

According to Yonhap News Agency, Gwangyang, located about 350 kilometers south of Seoul, was selected for this designation because the steel sector is crucial to the city's economy, accounting for 88.5 percent of its industrial production, 97.5 percent of exports, and 9.7 percent of employment. This classification as a special zone for preemptive response to an industrial crisis will be in effect for the next two years, allowing local companies to access emergency liquidity support and low-interest policy loan programs.

Gwangyang is the fourth city to receive this designation in the current year, following Yeosu, Seosan, and Pohang. South Korea is actively working to restructure its struggling steel industry, which is facing challenges due to the global supply glut and protectionist trade measures from major economies. These measures include a 50 percent tariff on all steel imports imposed by the United States and the European Union's initiative to enhance its steel safeguard plan.

Earlier this month, the government revealed a road map aiming to enhance the competitiveness of the steel industry by supporting its transition to high-value and eco-friendly products.