Paju City Launches Research Project to Establish Paju-type Regional Public Bank Model

Preliminary Study Launched to Build a Foundation for Public Finance
and Create a Virtuous Cycle of Local Capital

Paju City in Gyeonggi Province announced on November 24 that it held a kickoff meeting for the "Study on Establishing a Paju-type Regional Public Bank Promotion Model" on the 21st, and will begin full-scale discussions to strengthen the public nature of local finance and revitalize the regional economy.

Kim Kyungil, mayor of Paju City, held a kickoff meeting for the "Study on Establishing a Paju-type Regional Public Bank Promotion Model" on the 21st. Provided by Paju City

Paju City has been reviewing the possibility of introducing a regional public bank, and this research project will serve as a preliminary study to analyze the outflow structure of local funds and to establish a public finance model that ensures funds generated in the region are reinvested into the local economy.

In addition, with the "Special Act on the Establishment and Operation of Regional Public Banks" (hereinafter referred to as the "Special Act") having been proposed in the National Assembly, Paju City plans to prepare a policy foundation to enhance the stability and public nature of the regional economy by reviewing not only regional public bank models that could be implemented after the enactment of the law, but also public finance alternatives that could be applied even before the "Special Act" is passed.

The kickoff meeting was attended by the mayor, directors of departments and headquarters, heads of relevant departments, and local financial institution leaders. There was also a session to listen to on-site opinions from these local financial institutions.

The research project will be carried out until March next year, focusing on analyzing the current state of financial exclusion and financial demand in Paju City, comparing and reviewing the legal and fiscal feasibility of establishment models, specifying the optimal model suitable for Paju City, and establishing phased implementation plans.

Kim Kyungil, mayor of Paju City, stated, "In a structure where local capital flows out to Seoul, it is essential to have a public finance foundation that ensures funds generated in the region can be used for the region again, in order for the local economy to grow stably." He added, "This research will be the first step in concretely creating a 'Paju-style public finance model' that allows Paju citizens to receive practical financial support when needed and enables a virtuous cycle of local capital."

Paju City plans to monitor trends in the enactment of the "Special Act" based on the research results and, if necessary, cooperate with the central government and the National Assembly to supplement the institutional framework.

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