Gwangjin-gu Mayor Kim Seon-gap's Response Amid Sewing Budget Return Conflict?..."Returning to Secure Larger Public Project"

Published 13 Feb.2022 16:53(KST)

On the 10th, at the district council's extraordinary session, councilors Kim Hoigeun, Jang Gyeonghui, and Lee Myeongok (Democratic Party) questioned District Mayor Kim Seonggap about returning the 500 million KRW budget granted in 2020 for the Seoul Smart Fair Project without using it. Mayor Kim stated, "After internal deliberation, we returned the Smart Fair Project funds to secure a larger-scale public contest project." Former five-term councilor and chairperson Chu Yungu declared leaving the Democratic Party, highlighting internal conflicts in local politics.

The photo shows the Gwangjin District Council plenary session related to the budget last year.

[Asia Economy Reporter Park Jong-il] Gwangjin-gu is embroiled in controversy over returning 500 million KRW of Seoul City’s sewing budget.

On the 10th, the Gwangjin-gu Council held a special session where Democratic Party members Kim Hoe-geun, Jang Gyeong-hee, and Lee Myeong-ok demanded answers and an apology from Mayor Kim Seon-gap, also of the same party, regarding the reason for returning the 500 million KRW budget granted in 2020 by Seoul City for the Smart Process Innovation Project without using it, and why the project site was moved from the originally applied Junggok-dong to Guui 1-dong, causing conflict.

In response, Mayor Kim said, “I deeply empathize with the reality of our district’s small-scale sewing industry as raised in the local government questions,” and added, “I will organize the questions into three points and provide answers.”

First, regarding the revitalization of the sewing industry, he explained that there had been deep concerns about internal conflicts within sewing organizations and budget embezzlement cases.

He introduced that in 2019, out of approximately 44.5 million KRW in Seoul City’s clothing manufacturing cooperation project funds, two sewing organization officials embezzled 8.5 million KRW, a fact confirmed by a final judicial ruling in May 2021. He also mentioned that two more individuals are currently under investigation for embezzlement.

Mayor Kim also introduced the fact that under Article 32-8 of the Local Finance Act, there is a restriction on the provision of local subsidies (within 5 years) due to legal violations.

Regarding the relocation of the Seoul City Smart Process Innovation Project site and the return of the 500 million KRW budget, he said, “There are about 903 sewing companies in the district, 68% of which are small subcontractors with fewer than five employees. Gwangjin-gu identified the most needed facility for small businesses as a shared workspace and applied for the 2020 Seoul City Smart Process Innovation Project, which was selected.” He added, “The original project site at 626-16 Junggok-dong was inconvenient due to the building’s aging and lack of an essential elevator. Although we searched for another site in Junggok-dong of about 100 pyeong (approx. 330 square meters), it was difficult to secure. To establish a better environment for the declining sewing industry support facilities, we considered relocating to the Gwangjin Economic Hub Center in Guui-dong.”

He explained that although the Gwangjin Economic Hub Center is not a cluster area as intended by the project, the department judged it feasible if a connection system was established through an on-site office, temporary transport vehicles, and various services.

Mayor Kim said, “During consultations, Seoul City stated that locations outside cluster areas are not allowed but proposed a larger-scale Smart Solution Anchor Project instead.” He continued, “According to Seoul City’s project site criteria, if the Smart Process Innovation Project and Smart Solution Anchor Project are pursued simultaneously, a ‘duplication avoidance factor (30 points)’ penalty applies for similar facilities. Therefore, it is difficult to pursue two similar projects simultaneously, so after internal deliberation, we decided to return the Smart Process Innovation Project budget to secure a larger-scale project.”

Regarding the question about not applying for the Seoul City Smart Solution Anchor Project, he said, “It is true that Seoul City planned the Smart Solution Anchor Project in 2021, and official documents were issued.”

However, he explained that the Seoul City Economic Policy Office failed to include the project budget in the 2022 main budget, so the Smart Solution Anchor Project was ultimately not implemented.

He also rebutted, “The project Seoul City called for between April and June 2021 was a national subsidy Smart Anchor Project, and it seems there is a misunderstanding that it was the Smart Solution Anchor Project.”

Mayor Kim explained, “The Smart Anchor Project basically involves the local government providing land such as district-owned land and constructing new buildings, with a large project budget ranging from approximately 16 billion to 48.7 billion KRW. It is well known among council members that Gwangjin-gu does not have large-scale shared land, especially in Junggok-dong.”

He added, “Although Gwangjin-gu is criticized for returning the 500 million KRW shared land project budget, please note that other autonomous districts have also returned Smart Anchor Project budgets depending on regional characteristics and circumstances.”

He cited precedents where large-scale projects were selected but later returned due to local characteristics and circumstances, such as Seongbuk-gu’s Wolgok-dong and Jangwi-dong projects each with 20 billion KRW, Gangbuk-gu with 16 billion KRW, Guro-gu with 48.7 billion KRW, and Dobong-gu with 16 billion KRW.

He further noted that even if local governments prepare and finalize general budgets, project plans may be suspended or changed due to various situational changes after finalization, something many have experienced through audits.

Meanwhile, before Mayor Kim’s response, Assemblyman Chu Yoon-gu, a five-term council member and former chairperson, declared his departure from the Democratic Party, stating, “I have served as a five-term council member and held positions as chairperson and vice-chairperson, and have worked for the common people and middle class as a Democratic Party member for 35 years, but as of today, I am leaving the Democratic Party.”

He added, “While it is possible to question a mayor from the same party ahead of the presidential election, this is not the way, and I feel disillusioned. Although my term is almost over, I cannot go with the Democratic Party anymore. I will break away from the Democratic Party.”

Following Mayor Kim’s response, Assemblyman Jang Gil-cheon of the same party made a personal statement, reportedly tearfully saying, “It pains me that our senior Assemblyman Chu Yoon-gu declared his departure.”

Assemblyman Jang said, “I think it was inappropriate for the three of us to raise the same issue. I worry that this incident will discourage public officials from actively participating in project applications. I hope that next time, things go well and bring hope to sewing companies,” concluding the special session that day.