Former 'Kabang' Member Lee Yong-woo: "Major Shift Needed in Metropolitan Area Regulations... Why Hold Back Even Underdeveloped Areas?"

Published 20 Mar.2020 11:44(KST)

[Asia Economy Reporter Park Cheol-eung] "We should not view the Seoul metropolitan area as a whole. We must face the reality of polarization within the metropolitan area and apply regulations differently according to each region in the east, west, south, and north. The road conditions and living zones have changed, so how long can we insist on the old framework? It is time to discuss regulatory innovation to move the metropolitan area toward a multi-polar development system."

Changes in regulations to prevent concentration in the metropolitan area are a topic that is not easy to discuss hastily. On the 18th, Lee Yong-woo, Chair of the Democratic Party's Special Committee on Regulatory Innovation, emphasized in an interview with Asia Economy that "while maintaining the basic principle of alleviating overcrowding, adjustments are inevitable." Since being recruited as a talent for the Democratic Party in January, he has stated that "I came to implement regulatory innovation." As a former CEO of KakaoBank, he is focusing on two major tasks: regulations on innovative industries and regulations for regional development. His candidacy in the Goyang-jeong district of Gyeonggi Province is also driven by the urgent need for solutions to the underdeveloped northern Gyeonggi region.

Chairman Lee said, "With improvements in the road network, areas like Goyang, Gimpo, and Paju in the west, and Namyangju, Guri, and Hanam in the east are becoming one living zone," adding, "If regulations are applied solely based on artificial administrative districts, resource allocation distortions will occur."

He argues that instead of applying uniform regulations simply because it is the metropolitan area, selective application should be made according to the characteristics of each region. He said, "Looking at the northern region, apart from the LCD complex in Paju, there are no significant industrial facilities," and added, "Due to the Metropolitan Area Readjustment Planning Act, attracting universities is not even considered. We need to open the way to actively attract innovative industry research and development (R&D) and exhibition industries." Some parts of the metropolitan area have been overdeveloped, while others are excessively underdeveloped.

He believes that by establishing self-sufficient functions, various social costs caused by dependence on Seoul can also be reduced. Chairman Lee said, "When campaigning, I greet commuters from 6 a.m. Because the roads are congested, people have to leave early in the morning; this is the reality of this area."

He has thus brought up a "hot potato" where the interests of each region clash. He said, "Many lawmakers within the Democratic Party sympathize with this. Once I enter the 21st National Assembly, I will prepare concrete alternatives and bring them to public discussion."

He continued, "When the issue of metropolitan area regulations is raised, it is problematic if people say, 'Are you saying we should concentrate?' We are trying to rationalize according to the changed environment," adding, "It is a very big issue, but if we tackle it step by step, progress will be made. I have worked with that mindset even when I was in the corporate world."

Meanwhile, as a financial expert, he assessed the economic situation caused by the COVID-19 pandemic as "more serious than the financial crisis." Chairman Lee said, "The real estate shock can be addressed by finding the ignition point and prescribing measures, but now life itself is collapsing and international cargo volume is plummeting, so there is no appropriate remedy," adding, "Lowering interest rates will not solve the problem, and the U.S. decision to give $1,000 in cash is a result of such concerns. We also need to provide cash to vulnerable groups."