[3rd Anniversary of the 7th Elected Government] Lee Jae-myung's 'Fairness and Strengthening the Weak' Policy Takes Root Throughout the Province

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Lee Jae-myung, Governor of Gyeonggi Province, will mark the 3rd anniversary of the 7th local government on the 1st of next month. Upon his inauguration in July 2018, Governor Lee emphasized the principle of "strengthening the weak and restraining the strong," stating, "I will faithfully follow the citizens' mandate to create a fair Gyeonggi Province where there is no injustice."

Governor Lee's promise has permeated various aspects of Gyeonggi Province's administration over the past three years. The province has introduced and implemented various projects and policies aimed at eradicating widespread unfair practices across society, including strengthening economic basic rights, establishing a foundation for fair trade, eradicating illegal real estate activities, and improving labor conditions, thereby fostering a spirit of fairness.

◆ Expansion of Economic Basic Rights

Gyeonggi Province has focused on ensuring sustainable growth and enabling everyone to enjoy a dignified life by expanding economic basic rights. A representative project is the 'Basic Income' provided to all residents without discrimination.

To overcome the economic crisis caused by COVID-19, the province introduced disaster basic income paid in non-refundable (to be used within 3 months) local currency to residents. The local currency, used as a payment method for the basic income policy, is restricted to usage in neighborhood markets and similar venues, ensuring equal opportunities for ordinary citizens and small business owners, and serving as a lifeline for continuous economic growth. Since April 2019, local currency has been issued throughout all 31 cities and counties, with a cumulative issuance amount reaching 5.27 trillion KRW as of last month. The use of local currency has also proven effective in revitalizing the neighborhood economy, with a 24.1% increase in small business store usage (based on a survey of 3,200 users last year).

The province is also implementing Youth Basic Income, providing 250,000 KRW quarterly to 24-year-old youths. According to the province, this policy has not only economic effects but also improved the quality of life for young people. Additionally, Farmer Basic Income (50,000 KRW monthly) aimed at alleviating income inequality among farmers will be introduced starting October.

Aligned with Governor Lee's philosophy that "a house is not just a place to buy but a place to live," the 'Basic Housing' project is a core administrative initiative. Basic Housing provides stable living spaces for over 30 years at reasonable rents to those without homes, without any qualification conditions. The province is currently scouting sites for pilot projects and is negotiating with the government to supply more than half of the housing units in the 3rd phase new towns within the province as Basic Housing.

The 'Basic Finance' service, which offers small amounts of money at reasonable interest rates for long-term use without discrimination, took its first step last month with the legislative notice of the 'Ordinance on Support for Youth Basic Finance in Gyeonggi Province' on the 26th. Once implemented, this policy will allow low-interest long-term loans of up to 10 million KRW for young people.

◆ Realization of a Fair Economic Order

The province is also implementing policies to support fair trade and the mutual growth of local commercial districts. The Fair Economy Committee was established to correct the economic structure dominated by a few large corporations, including regulations on the entry of large-scale retailers (large marts). The province is actively working to eradicate unfair practices such as disadvantages in contracts and deliveries in the automobile parts industry and disputes over the management of multi-tenant buildings.

In particular, with the rapid expansion of the delivery market due to COVID-19, the province conducted a survey on transaction practices between delivery apps and franchise stores, held a forum at the National Assembly to prevent monopolization of the platform market, and proposed the enactment of the 'Act on Fairness in Online Platform Brokerage Transactions,' which is currently under legislative notice. The public delivery app 'Baedal Teukgeup' was launched in December last year and is currently operating in 16 cities and counties including Hwaseong and Paju. As of the 27th, it has 350,000 registered members and has surpassed a total transaction amount of 30 billion KRW. The province plans to expand this service to all 31 cities and counties by the first half of next year.

Additionally, to eliminate unfair trade practices prevalent in the cultural sector, such as overtime work and short-term labor contracts, the province has mandated the use of standard contracts guaranteeing minimum wages when contracting events between partner companies handling cultural events and the province or public institutions. For subcontracting, a system has been established allowing workers to directly claim unpaid wages from public institutions.

Furthermore, to address issues such as high prices and inconvenience to local companies caused by the monopoly of the national procurement system 'Nara Market,' the province plans to establish its own fair procurement system and will conduct related services by September.

◆ Eradication of Illegal Practices Close to Daily Life

The province is mobilizing all available means to eradicate illegal practices closely related to daily life that hinder fair competition, such as real estate speculation, illegal private loans, and corrupt construction environments.

First, to block real estate speculation, the province introduced the Land Transaction Permission Zone system, which restricts transactions other than for actual use (residential or business). Currently, 5,784.63 km² (57.2% of Gyeonggi Province's total area of 10,195 km²), excluding foreign nationals and corporations, including forest and farmland areas suspected of speculative development, have been designated as Land Transaction Permission Zones. The province is also promoting a public development profit return system for residents and has proposed a public disclosure system for non-residential real estate to the government.

Crackdowns on illegal high-interest private loans that burden ordinary citizens have also been strengthened. The Gyeonggi Provincial Special Judicial Police recently uncovered a loan organization that charged exorbitant interest rates up to 31,000% targeting vulnerable groups and small business owners in the province. The special judicial police are conducting intensive investigations in 20 areas closely related to residents' lives, including substandard food, waste dumping and neglect, and animal abuse. The number of criminal cases filed by the special judicial police has reached over 4,300.

Among these, rivers and valleys, which have suffered from illegal activities, have been restored as recreational spaces for residents by demolishing over 11,700 illegal facilities from about 1,600 businesses.

◆ Improvement of Unreasonable Construction Environment

The province has also significantly strengthened crackdowns on 'fake construction companies' (paper companies) and unfair subcontracting contracts deeply rooted in the construction industry. Paper companies are firms that exist only on paper or conceal illegal activities.

The province identified and expelled 253 fake construction companies established solely to win construction contracts and promote unfair trading practices such as blanket subcontracting. Regarding subcontracting, the province is encouraging the 'Main Contractor Joint Bidding System,' where the main contractor (general construction company) and subcontractor (specialized construction company) form a joint consortium to participate in bids on equal footing. This measure aims to transform the traditionally vertical main-subcontractor relationship into an equal one, preventing chronic problems such as low-price bidding competition and re-subcontracting.

Especially for 'a safe working environment for everyone,' the province is promoting the 'sharing of labor inspection authority' between central and local governments. Currently, labor inspectors from the Ministry of Employment and Labor cover only 1% of all workplaces.

The province has also proposed amendments to the Construction Industry Basic Act to grant local governments jurisdiction over construction sites, in addition to registration authorities, to conduct on-site investigations of construction companies. This is to enable local governments to actively intervene in citizen safety and construction quality assurance.

◆ Expansion of Fair Ecosystem Establishment

In July 2019, the province established the 'Fair Economy Bureau' to realize a foundation and values of fairness, and the 'Labor Bureau' to accelerate a fair society where labor is respected.

The Fair Economy Bureau performs functions such as promoting economic democratization, fostering cooperation among large, medium, and small enterprises, realizing tax justice, and strengthening crackdowns on illegal and unfair practices. Among its major projects, besides the aforementioned fair economy and special judicial police, the bureau addressed the shortage of tax officials by hiring over 3,500 members of the 'Tax Delinquency Management Group' composed of ordinary citizens between 2019 and 2020. They investigated 1.76 million tax delinquents, conducted surveys, and collected 139.5 billion KRW in delinquent taxes. They also supported welfare, housing, and employment for about 900 socially vulnerable individuals with accumulated tax debts, practicing the principle of 'strengthening the weak and restraining the strong.'

In response to ongoing recruitment corruption in private schools, the province is pushing for amendments to the 'Private School Act' to entrust the entire recruitment process of private school staff to the education office, enabling recruitment of talent at the same level and standards as public schools. The province has also implemented mandatory public contests for the installation of artworks in buildings to ensure diversity of works and entry of emerging artists.

Governor Lee Jae-myung emphasized, "'Fairness' is a fundamental principle to maintain the community and create a world where everyone prospers together, and a precious value that our society must continuously pursue. Realizing the value of fairness by resolving gaps, inequality, and unfairness is the best policy."

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