Two major industrial cities in South Korea are showing contrasting trends as Gumi benefits from a recovery in the semiconductor sector, while Pohang faces pressure from a downturn in the steel industry.

In Gumi, local revenues and tax income have increased significantly, supported by the improved performance of semiconductor companies. In contrast, Pohang has seen a decline in fiscal revenue as the steel sector weakens, weighed down by low-cost competition, trade tariffs, and soft construction demand.

The divergence highlights a broader structural shift in the economy, where high-tech industries are gradually taking a more dominant role over traditional sectors such as steel.