By Yoon Ja-young
As part of its plans to spur innovative growth in local administrations, the government is considering designating Jeju Island as a special zone to develop the blockchain and electric vehicle industries. If designated as such, it is expected to draw 63.2 billion won in investment over the next five years and create 1,800 jobs.
In addition, the government will remove regulations to nurture Daegu's brain science research as well as providing it with a research center. Currently, researchers had to go to medical schools for research as brain tissue can be dealt with only at medical schools. On top of persuading the lawmakers to approve a revision bill, the government backed research center will create 183 jobs.
“Innovative growth cannot be attained only by central government. To lead to changes in the field, participation by local governments and businesses is essential,” Economy and Finance Minister Kim Dong-yeon said during a meeting with mayors and governors, Wednesday, where the government unveiled these plans and others to support local administrations' projects for innovative growth.
Most of all, they focus on deregulation, following the determination that excessive regulations have hampered investment despite demand by businesses or residents.
Jeju had previously asked to be designated as a special zone to nurture blockchain and electric cars; and now the government has agreed to this subjecting to it being a “regulatory sandbox.”
Under the regulatory sandbox, which is at the core of the Moon Jae-in administration's deregulation strategy, those with innovative ideas are allowed to freely test their products and business models, without having to worry about regulations.
Following the passage of a revision bill that will open the door for the special zone, businesses joining the project will also get government support for research and development.
In the case of Sejong, which the local authorities plan to develop into a smart city, regulation on personal mobility devices will be eased - currently, they are banned from being used in parks.
North Jeolla Province, meanwhile, will focus on developing environment friendly self-driving trucks, using the Saemangeum reclaimed area as a test site. It plans to invest 221 billion won by 2023 to create 5,595 jobs.
The finance ministry expects the joint efforts with local governments for innovative growth to lead to 2.5 trillion won in investment and the creation of 10,000 jobs.
It also unveiled 7 trillion won investment plan to improve the quality of life.
The administration plans to shift the focus of SOC investment from civil engineering to those related to the quality of life, such as facilities where people can spend their leisure time doing activities related to culture, health and tourism.
This includes building 60 community sports centers and 20 multipurpose gyms nationwide so that any resident can easily access such a facility near their homes.
It will expand the number of urban regeneration projects around the country to 168 from 68 this year to improve the livelihood of residents in areas that are feared to become slums.
Measures for a better environment are also included in the plans.
Sixty hectares of new forests will be created to help deal with fine dust, which is becoming an increasing health risk.
Charging stations for electric vehicles will be set up to help growth in the use of environment friendly cars.