The government has unveiled an ambitious plan to create jobs for young people by promoting various projects to encourage their startups and upgrade decrepit residential environments in the hearts of about 250 towns across the nation simultaneously.
The project drafted by the Ministry of Land, Infrastructure and Transport through consultations with the ruling Democratic Party of Korea appears to be epoch-making in that it aims at “killing two birds with one stone,” namely jobs and revitalization of old undeveloped towns.
The plan, dubbed “New Deal for Urban Regeneration,” deserves attention as it features efforts to prevent “gentrification” of worn-out buildings in old towns, which was one of major problems in the previous projects for city maintenance like the construction of “new towns” in old city blocks.
However, it is feared the urban regeneration project may create a bubble in the real estate market, which shows signs of regaining stability after undergoing a speculative mood.
In order to effectively and productively promote the project expected to create many jobs for the young, the government should examine closely the development of land, a potential surge in housing prices in the course of selecting candidate towns and also closely monitor real estate market trends afterwards.
Real estate prices may rise naturally if residential environments are improved but the project may prompt speculative investment. Then, the ambitious plan could go nowhere due to the downside risks.
As Minister of Land, Infrastructure and Transport Kim Hyun-mi said, the government should keep its promise to offer more job opportunities to young people and residents of the selected towns. It also must listen carefully to the different opinions of residents because there are pros and cons to urban renewal.
The central and local administrations should not spare any effort to provide young people from the old areas with support required to help create jobs for them. This kind of project should not be politically motivated and should be continuously pushed through by the next governments _ be they liberal or conservative.