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The South Korean government has designated the city of Gunsan as a ‘crisis zone’ for industry and employment, said presidential spokesman Kim Eui-kyeom on Tuesday, after General Motors (GM.N) announced last week it would be shuttering a factory there.
Designated crisis zones become eligible for special government subsidies like cheap loans and financial support for those laid off in the country, reports Reuters.
Kim also said that related government agencies were having close talks over this issue, adding that he does not yet have a plan to meet GM’s top executive Berry Engle.
The Detroit automaker announced last week that it would shut its plant in Gunsan, southwest of Seoul, by May and decide the future of the remaining three plants in the country within weeks.