The city of Gunsan, South Korea, has been declared an “Industrial Crisis” zone following news that General Motors will close the Gunsan plant located in the city. Reuters reported on Thursday that it’s the first time an area has qualified for the designation.
Previously, Gunsan was considered a “crisis zone for industry and employment” to focus on curbing high unemployment rates in the area. The new designation will give access to more financial support for business affected by the GM plant’s closure.
Thus far, South Korea’s central bank has allocated $38 million to aid small- and medium-sized companies also affected by the closure.
GM has yet to decide the fate of South Korea’s other manufacturing plants. The automaker proposed a $2.8 billion investment plan over 10 years to secure its presence in the country, though it asked the South Korean government to co-invest. The Korean Development Bank is conducting its due diligence before making a decision.
Meanwhile, GM is reportedly considering a shift cut at the Bupyeong plant—another under-capacity facility.