Busan is good

Emergency Economic Measures Announced by Busan Metropolitan City to Stabilize Livelihoods and Revitalize the Local Economy Amid Prolonged Middle East Crisis

내용

Busan Metropolitan City (Mayor Park Heong-joon) announced that it held the 54th Emergency Economic Response Meeting today (15th) at 9:00 a.m. in the City Hall Grand Conference Room to prevent the impact of the prolonged global compound crisis, triggered by the Middle East conflict, from spreading across the local economy and to establish effective response measures.

The meeting was attended by Mayor Park Heong-joon, Busan Chamber of Commerce and Industry Chairman Yang Jae-saeng, and 33 economic stakeholders, including representatives from related associations, organizations, and institutions. Participants discussed response directions to the global compound crisis arising from the Middle East situation, as well as measures to stabilize livelihoods and restore economic vitality.

Immediately following the outbreak of the Middle East situation, the City convened an emergency meeting and proactively activated an emergency response system. Through the first supplementary budget, it provided special funds worth KRW 350 billion and expanded support for overseas logistics costs and participation in international exhibitions to help alleviate difficulties faced by local businesses.

However, as the situation has prolonged, the need for comprehensive measures to minimize the impact of the compound crisis has increased, leading to the formulation of additional measures through this meeting.

At today’s meeting, the City discussed comprehensive response measures to minimize the impact of compound crises—such as high exchange rates, high oil prices, and high inflation—on the local economy, while also accelerating carbon neutrality and energy transition in the mid- to long term. It announced 10 key initiatives and 34 policy measures across three major areas: livelihood stabilization, business vitality, and energy structure transition.

In the area of livelihood stabilization, the City will focus on projects with high public impact, centered on support for those affected by high oil prices, price stabilization, boosting domestic demand, and strengthening the employment safety net.

First, to support vulnerable groups affected by high oil prices, the City will implement seven projects worth KRW 477.4 billion. These include support for the safe operation of freight vehicles and village buses with high diesel dependency, partial subsidies for increased tax-free fuel costs for coastal fishing vessels and agricultural machinery, expansion of commuter bus services for industrial complex workers, and provision of financial support for those affected by high oil prices.

To stabilize prices, the City will implement three projects worth KRW 250 million, including stabilizing the supply of volume-based waste disposal bags, freezing local public utility fees in the first half of the year, and providing an additional 5% Dongbaekjeon cashback for citizens using designated “Good Price” establishments.

In addition, the City plans to expand various policies to stimulate domestic demand, promote local consumption, and strengthen the employment safety net.

In the area of business vitality, the City will support the recovery of corporate competitiveness by expanding policy financing, providing tailored support for import-export companies, stabilizing industry-specific supply chains, and addressing business difficulties.

To assist small and medium-sized enterprises and small business owners facing financing difficulties, the City will implement three projects worth KRW 782.4 billion. These include expanding working capital support by KRW 500 billion, extending the maturity of existing loans by six months, and introducing specialized financing programs for joint raw material procurement.

To support import-export companies, the City will implement five projects worth KRW 1.39 billion, including increasing the support ceiling for import-export difficulty vouchers, expanding support for joint procurement of raw materials in the machinery parts industry and logistics and storage costs for imports and exports, and increasing the support ceiling for overseas logistics costs in the footwear industry.

For industry-specific tailored support, the City will implement four projects worth KRW 530 million. These include upgrading a joint delivery platform to respond to supply chain crises in the shipbuilding equipment industry, establishing a joint stockpiling system for raw materials in the textile and fashion industries, building a shared platform for production and evaluation equipment in the automotive parts sector, and providing temporary support for packaging materials for exported seafood products. Through these efforts, the City aims to establish a stable supply chain management system across industries.

In addition, to address business difficulties, the City will strengthen the operation of the One-Stop Corporate Support Center by providing specialized consulting services for crisis response, and will also implement tax support measures such as extending local tax payment deadlines (up to one year) and granting tax deferrals (up to one year) for affected companies.

In the area of energy structure transition, the City will use the energy crisis triggered by the Middle East situation as an opportunity for industrial transformation by expanding renewable energy and fostering new energy industries.

The City will expand projects such as the establishment of energy self-sufficiency infrastructure in the Sinpyeong-Jangrim Industrial Complex (through public contests) and integrated energy convergence support projects.

Additionally, for the development of regionally specialized new energy industries, the City will pursue mid- to long-term projects including the establishment of the Gijang Clean Energy Convergence Hub, the development of the Gadeok Green Energy City, and the creation of “Sunlight Income Villages” in the Gijang area.

To alleviate the burden on citizens and support corporate liquidity as discussed in the 54th Emergency Economic Response Meeting, the City has allocated KRW 485.3 billion to economic recovery in the proposed second supplementary budget for 2026.

Mayor Park Heong-joon stated, “These measures are designed to minimize the impact of the Middle East situation on livelihoods and to provide immediate relief to local businesses, while also considering mid- to long-term strategies for improving the economic structure,” adding, “In particular, this supplementary budget is expected to deliver practical support that citizens and businesses can directly experience.”