Gov't to create more 'Gwangju-type' job models across nation

Jung Tae-ho, senior secretary for job creation, speaks at a media briefing at Cheong Wa Dae in Seoul, Friday. / Yonhap

By Lee Min-hyung

Cheong Wa Dae expressed hopes Friday of establishing more Gwangju-type job creation models across the nation, in a move to help local companies reduce labor costs and reinvigorate regional economies.

The new job creation model refers to the government's partnership drive with Hyundai Motor Group and the nation's southwestern city.

Under the model, Hyundai will build a car factory in the city. Employees there will receive about half the usual wages of workers. To help resolve the gap, the central and regional governments will offer financial and welfare support packages to the employees, such as housing and healthcare.

“The government is preparing for spreading the job creation model across the country,” Jung Tae-ho, senior secretary for job creation, said at a media briefing Friday.

“In the first half of this year, we hope to create at least more than two similar models (in other cities). The Ministry of Trade, Industry and Energy is also taking legal steps to support the model.”

The legal steps are crucial to making the model sustainable even after the President Moon Jae-in administration ends its tenure in 2022, according to Jung.

“The most crucial issue discussed with Gwangju City and Hyundai was how long the project will last in a stable way,” Jung said. “After establishing a legal basis on the project, we are going to unveil details in February to remove lingering concerns on the project's sustainability.”

Regional governments are also willing to take part in the government drive, with cities such as Gunsan, Gumi and Daegu expressing keen interest in the co-prosperity job model, according to Jung.

“The Gwangju-type job creation model is a new breakthrough to revitalize the sagging regional economy,” Jung said. “This will be the first time in 23 years that Hyundai Motor has built a new car plant in Korea.”

The government has pushed ahead with a series of policies to rev up the economy, but the Gwangju-type model is different in that it is a win-win for local companies and regional governments, Jung said.

“A number of businesspeople from the nation's major conglomerates contacted me and most of them paid the most attention to the Gwangju-type job model, saying that the project can build an environment that will bring their overseas plants home.”