Incheon City seeks crisis designation for Jemulpo-gu steel industry

Incheon Metropolitan City has officially submitted an application to the Ministry of Trade, Industry and Energy to designate Jemulpo-gu as an ‘Industrial Crisis Preemptive Response Area’ due to the prolonged downturn in the local steel industry.

The region, a critical hub for steel supply in the Seoul metropolitan area anchored by Hyundai Steel and Dongkuk Steel, is facing a complex crisis. Key drivers include a slump in the construction sector, an influx of low-priced Chinese steel, increased U.S. steel tariffs, and rising industrial electricity costs. Major players have already begun restructuring; Hyundai Steel permanently closed its electric furnace and small rolling plants in January, while Dongkuk Steel has reduced production levels.

If the designation is approved following government review and field inspections, Jemulpo-gu will receive two years of comprehensive support. This includes emergency management funds, policy financing, loan extensions, R&D support, and employment stability programs. The city aims to use these resources to facilitate a transition toward eco-friendly, high-value-added industries and to stabilize the local economy and job market.