The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Tue, July 5, 2022 | 07:12
Business
Nation Regrouped Into 7 Economic Blocs
Posted : 2008-09-10 18:40
Updated : 2008-09-10 18:40
Print Preview
Font Size Up
Font Size Down
By Lee Hyo-sik
Staff Reporter

South Korea will be divided into seven economic blocs and be assigned with one or two leading industries as part of government efforts to promote balanced development and turn the nation into a globally competitive business hub.

To do this, the government plans to spend 25 trillion won out of state coffers and attract another 25 trillion won from the private sector over the next five years, implementing 30 development projects aimed at expanding roads, railways and other infrastructure, as well as nurturing talented manpower.

However, critics say that the package is the Lee Myung-bak administration's attempt to satisfy both voters in the Seoul metropolitan and provincial areas in the name of balanced national development not unlike the previous Roh Moo-hyun administration.

They say the massive fiscal stimulus measure is largely aimed at helping the struggling construction industry and spurring domestic demand as the world's 13 largest economy is losing momentum fast on sluggish private consumption and investment. But they cautioned that the plan could further hike prices of goods and services by increasing the money supply and worsening fiscal soundness, arguing it could do more harm than good to the economy in the long run.

In a report to President Lee, Wednesday, the Ministry of Strategy and Finance said it selected one or two ``future-promising'' industries for each region. To help promote key industries, one or two universities in each district will also be fostered to provide skilled workers.

The government also plans to advance transportation and logistics-related infrastructure across the country through 30 development projects, including the Saemangeum development scheme in North Jeolla Province and the construction of an administrative capital in South Chungcheong Province.

``It is important to develop both the Seoul metropolitan area and provinces. The plan is aimed at leveling the playing field for both sides. We will help provincial areas expand roads and other logistics-related infrastructure to better compete with the metropolitan area,'' Strategy and Finance Minister Kang Man-soo said.

Kang stressed that the development projects will face little difficulty in attracting 25 trillion won in private investments as profitability prospects are bright. He added despite such large state spending, fiscal soundness will remain intact because the recent broad tax cut will encourage businesses to expand investments and consumers to increase consumption further down the road, resulting in larger tax revenues in the years to come.

Under the scheme, Seoul, Incheon and Gyeonggi Province will be transformed into a global business hub, equipped with knowledge-based service industries. Chungcheong Province will be fostered as Korea's Silicon Valley and a research and development (R&D) hub for Northeast Asia.

Southwestern Jeolla Province is to be developed as a center for culture as well as renewable energy development and other green growth-based businesses, while Busan and South Gyeongsang Province will become the logistics hub for Northeast Asia.

The government will also promote Daegu and North Gyeongsang Province as an information technology and knowledge-based industry center. Gangwon Province will become a leisure and medical services industry hub, with Jeju being transformed into a free international city.

Critics say the multi-billion dollar development projects are just the latest politically-motivated scheme to improve the Lee administration's standing with the public.

``The spending plan is part of the government's effort to ease growing conflict between the Seoul metropolitan area and provinces because the government cannot afford to lose support from either side. It is appealing to populism,'' Citigroup economist Oh Suk-tae said.

Oh added that there were not many new projects included in the unveiled development scheme, saying the government was recycling previously announced plans to appeal to the public.

``The spending could also worsen fiscal soundness as the government has pledged to slash its annual budget by 10 percent over the next few years and cut income taxes on individuals and businesses,'' he noted.

leehs@koreatimes.co.kr

 
LG
  • Typhoon Aere forecast to bring extended heatwave
  • [ANALYSIS] Korean exporters start rethinking 'China strategy'
  • Banks favor 'MZ generation' celebrities for marketing in digital era
  • 'Korea, Japan should restore visa waiver program'
  • [INTERVIEW] 'Repatriation puts fear in eyes of all North Koreans,' rights expert says
  • Pakistan unveils Buddhist heritage in documentary
  • KT drama 'Extraordinary Attorney Woo' popular on Netflix
  • Georgian wine ready to captivate Korean market
  • 'Global firms look to Korea for inspiration and trends': Kantar CCO
  • Photo of Yoon staring at blank computer screen raises eyebrows
  • Moon Geun-young to make directorial film debut at BIFAN Moon Geun-young to make directorial film debut at BIFAN
  • Lee Jung-hyun returns to big screen after becoming a mom Lee Jung-hyun returns to big screen after becoming a mom
  • BLACKPINK's 'Ddu-du Ddu-du' sets YouTube views record for K-pop group BLACKPINK's 'Ddu-du Ddu-du' sets YouTube views record for K-pop group
  • [INTERVIEW] How Frank Wildhorn became most popular musical composer in Korea [INTERVIEW] How Frank Wildhorn became most popular musical composer in Korea
  • Maroon 5's world tour image with Rising Sun design causes stir Maroon 5's world tour image with Rising Sun design causes stir
DARKROOM
  • Afghanistan earthquake killed more than 1,000

    Afghanistan earthquake killed more than 1,000

  • Divided America reacts to overturn of Roe vs. Wade

    Divided America reacts to overturn of Roe vs. Wade

  • Namaste: Yogis to celebrate International Yoga Day

    Namaste: Yogis to celebrate International Yoga Day

  • Poor hit harder by economic crisis

    Poor hit harder by economic crisis

  • Roland Garros 2022

    Roland Garros 2022

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group