President Moon Jae-in ordered his government to designate the nation's southwestern city of Gunsan as a 'crisis zone' for industry and employment... following General Motors' announcement last week that it would shut down its production plant there.
"Upon presidential orders, the labor ministry has decided to take emergency steps to name the Gunsan region as an 'employment crisis area.'"
The presidential spokesperson added... although the current situation in Gunsan does not fully meet the criteria to be given such status, the administration is willing to revise the existing regulation to make it possible.
Designated crisis zones become eligible for special government subsidies like low-interest loans and financial support for those laid off.
Moon expressed concerns over GM's decision as Gunsan employs 2-thousand of the U.S. carmaker's 16-thousand-strong workforce in South Korea... with one out of five people in the city dependent on GM for their livelihood.
