Hong Nam-ki: "Regions Are a Core Axis of the 'Korean New Deal'... We Will Support 'Regulatory Reform and Expansion of Dedicated Local Government Organizations'"

At the 2nd Korea New Deal Strategy Meeting, 'Measures to Promote Regional Balanced New Deal in Collaboration with Local Areas' Discussed and Finalized

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance. (File photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] On the 13th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated, "We will actively support the establishment of local government organizations dedicated to the Regional Balanced New Deal and the reinforcement of personnel to eliminate regulations and obstacles arising during the promotion of the Regional Balanced New Deal and to strengthen the driving force for New Deal implementation at the local level."

That afternoon, Deputy Prime Minister Hong held a briefing at the Government Complex Sejong on 'Measures to Promote the Regional Balanced New Deal in Collaboration with Local Areas,' saying, "One of the core pillars for the full-scale promotion and expansion of the Korea New Deal is the region."

The local government-led New Deal projects are promoted in a way that each local government discovers and implements projects by itself, leveraging its characteristics. The government and local governments believe that promoting projects optimized to regional characteristics and needs will increase budget execution efficiency and contribute to balanced development. Daejeon is being built as an AI-based intelligent city, and Jeju Province and Jeonnam Province are promoting renewable energy and offshore wind power generation, respectively, as key tasks of their local governments. Currently, 136 local governments, including 11 metropolitan local governments and 125 basic local governments, are planning regional New Deal projects.

Deputy Prime Minister Hong summarized the types of Regional Balanced New Deal projects into three main categories: ▲ Korea New Deal regional projects executed locally and whose effects return to the region, among the comprehensive Korea New Deal plan projects ▲ local government-led New Deal projects promoted with local government’s own resources and private capital within Korea New Deal fields ▲ public institution-led New Deal projects executed in collaboration with local governments, research institutes, and companies.

The government also presented key directions for promotion. First, the government plans to link Korea New Deal public contest projects with regional balanced development. For example, additional points will be given considering regional development when selecting Korea New Deal public contest projects. Strengthening connections with various special zones and free economic zones will also be pursued. Starting this November, new regulatory free zones focused on New Deal fields will be designated, and from next year, key strategic industries in New Deal fields will be selected for each free economic zone. Support will also be provided for restructuring existing city and provincial main industries into digital and green New Deal-related industries. Additionally, incentives for local investment promotion subsidies, which support up to 34% for facilities and up to 50% for locations for companies investing in local areas such as local new or expanded facilities, relocation of companies from the metropolitan area to local areas, and domestic return of overseas expansion companies, will be increased from the existing 2 percentage points to up to 10 percentage points. The government will also exempt local fiscal investment reviews or speed up the process through ad hoc reviews and provide differentiated incentives from the National Balanced Development Special Account for excellent cases. Support for excess issuance of local bonds and incentives from the National-Local Cooperation Special Grants will also be provided.

Deputy Prime Minister Hong said, "The key to the success of the Regional Balanced New Deal is 'collaboration and execution,'" adding, "Starting today, we will strongly promote the Regional Balanced New Deal through close collaboration among the central government, local governments, public institutions, and the private sector to achieve the successful promotion of the Korea New Deal and national balanced development together."

This content was produced with the assistance of AI translation services.