Members of the GM Korea union, a subcommittee for Korea Metal Workers' Union, hold a meeting to demand GM Korea withdraw its plan to shut down Gunsan manufacturing plant in Gunsan, South Korea February 14, 2018. Yonhap via REUTERS

SEOUL (Reuters) - 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.

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.