$100 Bil. Set for Regional Development
By Kim Hyun-cheol
Staff Reporter
The government will spend a total of 126 trillion won over the coming five years on the country's regional development.
The five-year project was reported Wednesday to President Lee Myung-bak during a Presidential committee on regional development meeting, said the Ministry of Knowledge Economy.
A total of 126 trillion ($104.2 billion) will be spent through 2013 on the long-term growth scheme, in which all Korean provinces are regrouped into seven regions with differentiated outlines to bolster business and secure global competitiveness, as well as build up the quality of life for residents.
The blueprint will be put into effect next month, following approval from the Cabinet and the President. Of the earmarked budget, 71.2 trillion won will come from the central government, with 24.3 trillion won and 30.9 trillion won to be created by regional administrations and private investments, respectively.
Under the plan, each area will autonomously develop key projects in industries, manpower and social infrastructure under the supervision of a special committee headed by governors. Those projects will be additionally subsidized by 50 billion won in total next year from the government.
A total of 50 trillion won will be used for its 30 initial projects over the next five years, including the country's core construction works such as the building of Sejong City, Korea's new administrative city, the second Seoul-Busan Highway that will link the Korean capital and Sejong City, and the Saemangeum Bay development project in North Jeolla Province.
Aimed at facilitating cooperation between the regions, six cross-border belts will be developed to be business and industry hubs.
The seven regions have distinguished visions of their development plan. The region of Seoul and its vicinity wants to create a global business hub to lead the country overall.
The Chungcheong region, which include North and South Chungcheong provinces, aims to be the country's science and high-tech center. The Honam region, comprised of North and South Jeolla provinces, plans to emerge as the incubator of culture, art and eco-friendly green industries.
The Southeast region of Busan, Ulsan and South Gyeongsang Province will be developed into the center of distribution and key industries dealing with trade in the pan-Pacific economic belt.
Its neighboring Daegu and North Gyeongsang Province will jointly make a new growth engine for knowledge-based industries and traditional culture.
As independent regions, Gangwon Province is expected to be a tourism frontier on the east coast, while Jeju Island aims to become the leading free international city in Asia.
The ministry estimated the project will generate production and wages worth 327.9 trillion won.