Entry #6 20200622 Sang-Hoon

Decentralization plan stirs row

A major political dispute is brewing over whether to scrap a massive regional development plan made by the previous administration.
The Lee Myung-bak government is expected to place the "innovative city" scheme under the knife in light of its plan to privatize many of the state-owned firms as well as recent reports that suggest the project won't likely lead to economic prosperity in provincial areas as had been hoped.
The project, estimated to cost 43 trillion won ($44 billion), was aggressively pushed by the Roh Moo-hyun administration as a way to decentralize the metropolitan area. Under the plan, 10 innovative cities would be born by relocating over 100 state-owned firms in Seoul there.
However, controversy rose when a recent government audit showed that its proposed economic value had been inflated. A think tank report, meanwhile, showed that the plan had been pushed on false expectations that all the families of relocated employees as well as related businesses would move as well.
A survey showed only 51 percent of the families were willing to relocate.
The main opposition United Democratic Party yesterday criticized the government and the ruling party of arrogance and said the "innovative city" project must be carried out as planned.
While the Ministry of Land, Transport and Maritime Affairs said it had no plans to change the project, the new government is reportedly already looking for an alternative plan.
Insiders say the new government is likely to replace or absorb the innovative city scheme into one of its proposed national projects.
The "5 plus 2 economic zone plan" seeks to raise the nation's competitiveness by devising cooperative and specialized development models according to five integrated economic zones: the metropolitan area (Seoul, Incheon and Gyeonggi Province); Chungcheong zone (Daejeon and Chungcheong provinces); Honam zone (Gwangju and Jeolla provinces); Daegyeong zone (Daegu and North Gyeongsang Province) and Dongnam zone (Busan, Ulsan and South Gyeongsang Province).
Gangwon Province and Jeju Island, meanwhile, would seek development models of their own.
The expectation is that "innovative" cities will likely be absorbed into this plan where they will play central roles.
The government is also reportedly considering using the extra lots that will stem from a reduced number of relocated state-owned firms, for corporate use.
The land could also be used in conjunction with its other proposed national projects like the Saemangeum project, cross-country canal and science-business belts, insiders said.
The move to virtually scrap the original plan will face an uphill battle, however, given the progress made so far.
Of the 10 innovative cities designated, ground has already broken in five.
Over 2.4 trillion has been paid out to citizens in land compensation, nearly 80 percent of the total. Also 28 state enterprises have completed their relocation plans.
Choi In-kee, policy committee chairman of the UDP, said attempts to downsize the plan would be met with strong public protests.
"The vicious cycle of completely reexamining projects from the previous administration should not be repeated," said Lee Gun-cheol, an official of Jeonnam Research Institute, a think tank in South Jeolla Province, where ground for the creation of a joint innovative city broke last November.
Politicians close to Roh Moo-hyun yesterday said changes in the scheme required gathering public opinion.
By Kim Min-hee (mhkim@heraldm.com) 2008.04.17


Actually I agree with making this grand waterway. I think it will bring Korea so many benefits. reasons are this; it will reduce logistics cost by one third, will produce seven hundreds of thousands jobs, can create more than 15sightseeing places, will reduce air polution and flooding, and it will improve water quality.
President Lee was elected by a nation. I think we should believe him because he is eager to make Korea as one of the most powerful countries in the world.