"Expanding Local Government Discretion to Prevent 'One-Time New Deal'"

Yeongnam Region New Deal Seminar... Discussion on Implementation Tasks
Busan "Consider Regional Balance in Project Selection"
Busan·Gyeongnam "Expand Metropolitan Transportation Network and Administrative Integration"
Daegu-Gyeongbuk "Expand Local Government Planning and Execution Discretion"
Gyeongnam "Local Governments to Independently Promote Necessary Projects"
EKYUNG Research Institute "Yeongnam Region Must Establish Greenhouse Gas Plan"

From the left, Song Gyo-uk, Director of Busan Institute, Jo Yong-seong, Director of Korea Energy Economics Institute, Sung Kyung-ryung, Chairman of the National Research Council for Economics, Humanities and Social Sciences, Oh Chang-gyun, Director of Daegu-Gyeongbuk Institute, Hong Jae-woo, Director of Gyeongnam Institute. (Photo by Korea Energy Economics Institute)

[Asia Economy Reporter Moon Chaeseok] The Korea Energy Economics Institute announced on the 19th that a seminar titled 'Tasks for Realizing a Regionally Tailored New Deal in the Yeongnam Region' was held on the 17th at the Lotte Hotel in Ulsan. It was suggested that when selecting projects, rather than through a public contest format, regional balance should be considered to prevent disparities.

The seminar was hosted by the Policy Planning Committee under the President and the National Research Council for Economics, Humanities and Social Sciences, and jointly organized by the Korea Energy Economics Institute and the Ulsan Energy Forum. Directors and researchers from four regional research institutes in the Yeongnam area, Sung Kyung-ryung, Chairman of the National Research Council for Economics, Humanities and Social Sciences, Jo Yong-sung, President of the Korea Energy Economics Institute, and New Deal experts attended.

The event was conducted with a minimal number of participants in compliance with social distancing measures. It was broadcast live on the Korea Energy Economics Institute's YouTube channel.

In his opening remarks, President Jo said, "For the successful implementation of the Korean New Deal, active cooperation and participation from local governments and communities are essential," adding, "I hope this gathering to discuss regionally tailored New Deal projects in the Yeongnam region will become a valuable forum to overcome the current economic downturn and the post-COVID-19 crisis."

Chairman Sung, in his welcoming remarks, said, "I congratulate the meaningful opportunity to explore diverse perspectives on the New Deal in each area of the Yeongnam region," emphasizing, "Our country can lead the wave of revolutionary global changes through the New Deal projects."

"Unified Voice for Central Government and Administrative Exchange, Expansion of Local Government Discretion"

[Image source=Yonhap News]

At the roundtable discussion on 'The Importance and Realization Measures of a Successful Regionally Tailored New Deal,' Chairman Sung served as the moderator. Participants included Song Gyo-uk, Director of the Busan Research Institute; Oh Chang-gyun, Director of the Daegu-Gyeongbuk Research Institute; Hong Jae-woo, Director of the Gyeongnam Research Institute; and President Jo as panelists.

They discussed ▲ evaluations of the Korean New Deal project contents ▲ introduction of regionally tailored New Deal planning projects ▲ cooperation needs between central and local governments and among regions during the promotion of regionally tailored New Deal projects ▲ and the ultimate goals pursued through the Korean New Deal and regionally tailored New Deal projects.

Director Song of the Busan Research Institute mentioned, "There is concern that conducting the New Deal as a nationwide public contest project could exacerbate regional disparities, so it is necessary to consider regional balance when selecting projects." He pointed out that Busan has strengths in finance and possesses specialized digital New Deal fields such as blockchain and fintech.

Director Song advocated for ▲ expansion of metropolitan transportation networks ▲ and integration in the administrative sector as important measures to facilitate the smooth promotion of regionally tailored New Deals. Director Hong of the Gyeongnam Research Institute agreed with this.

Director Oh of the Daegu-Gyeongbuk Research Institute emphasized, "It is necessary to establish a division of labor system where local governments can plan and execute at their discretion, and the central government evaluates." He noted that Daegu is promoting the Digital New Deal, Green New Deal, and additionally the Human New Deal.

Director Oh stated, "In the mid to long term, consultation with the central government is needed to nurture regional core talents who can lead New Deal projects."

Director Hong said, "It is important to establish a foundation for local governments to independently pursue necessary projects such as energy projects through empowerment of local government authority."

He added, "At the regional level, a strategic approach is required to effectively utilize the central government's New Deal plans."

"Yeongnam Region with Many Industrial Complexes Must Establish and Implement Mid- to Long-Term Greenhouse Gas Reduction Plans"

[Image source=Yonhap News]

President Jo expressed concern, saying, "Without active response from local communities and the private sector, the Korean New Deal could inadvertently result in public investment crowding out private investment."

He stressed, "It is necessary to establish a system that can continue locally even after central government investment ends, through securing resident acceptance and comprehensive subsidy support."

Regarding Ulsan, where the Korea Energy Economics Institute is located, President Jo said, "This New Deal can achieve decarbonization and digitalization to create new employment effects and transform into an eco-cultural city."

President Jo emphasized, "As the movement toward carbon neutrality by 2050 gains momentum, it is important for local governments in the Yeongnam region, which has many industrial complexes, to establish and implement mid- to long-term greenhouse gas reduction plans."

Following this, a discussion on 'Current Status and Cooperation Promotion of Green New Deal by Region' was held. Shim Sung-hee, Head of the Korea Energy Economics Institute, served as the moderator. Experts from each research institute in the Yeongnam region presented detailed progress on regional Green New Deal initiatives and discussed ways to promote interregional cooperation.

Source: Korea Energy Economics Institute

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