Regional Balanced Development Special Committee Includes 'Job Creation' as Top National Agenda

by Jeong Donghoon

Published 20 Apr.2022 11:32(KST)

Presidential Transition Committee Special Committee on Regional Balanced Development

The Presidential Transition Committee has decided to prioritize ‘regional job creation’ as the top national agenda item of the Special Committee on Regional Balanced Development. To this end, the Special Committee plans to actively promote the second phase of public institution relocations. The Special Committee on Regional Balanced Development will prepare the ‘Three Major Promises’ containing these details and report them to President-elect Yoon Seok-yeol on the 25th.

According to the Transition Committee and the Special Committee on Regional Balanced Development on the 20th, the committee has established three major promises for regional balance: ‘job creation based on innovation-driven growth,’ ‘region-led balanced development,’ and ‘support that leverages regional characteristics.’ A committee official stated, "We will select the three major promises and key tasks and report them to President-elect Yoon Seok-yeol next week." Each promise will include five to six detailed tasks.

The Transition Committee is reportedly working on consolidating the entire national agenda, including regional balanced development, into six major goals.

Accordingly, regional job creation is expected to become the top priority of the Yoon Seok-yeol administration. Since his candidacy, President-elect Yoon has emphasized jobs as a measure to prevent ‘local extinction.’ He has stated, "The core of resolving regional imbalance issues lies in how to satisfy jobs, housing, education, and convenience of living."

The ‘regional job creation’ envisioned by the Special Committee on Regional Balanced Development focuses on revitalizing private sector jobs. To this end, the committee also plans to actively promote the second phase of public institution relocations. So far, 153 public institutions located in the Seoul metropolitan area have been relocated, but about 100 public institutions remain. When public institutions relocate, employment opportunities for local talents increase, and the surrounding local businesses are revitalized, creating additional employment effects. However, considering the upcoming local elections, specific institutions or regions are not expected to be mentioned at this stage.

Other detailed measures include promoting local investment through tax and regulatory reforms, designating growth hub areas such as Sejong City and Saemangeum, and creating jobs through regional finance and startup infrastructure. The Special Committee on Regional Balanced Development also plans to continuously pursue the establishment of a regional bank in the Chungcheong area. Unlike Jeonbuk, Daegu, and Gyeongnam, the Chungcheong region does not have a regional bank. A committee official said, "Establishing a regional bank will have a significant effect on job creation," adding, "We plan to keep this agenda under the committee’s watch going forward."

The Special Committee on Regional Balanced Development will also seek ways to expand the ‘Gwangju-type job creation’ model, a labor-management win-win job creation model promoted by the Moon Jae-in administration, nationwide. The Gwangju-type job model involves companies employing workers at lower wages while the central government or Gwangju City supports workers with housing, childcare, education, and medical care. The committee plans to establish comprehensive special criteria and legal grounds for win-win job companies.

However, some voices raise concerns that the Special Committee’s pledge for job creation may remain empty rhetoric. After the transition period ends, the committee’s presence may diminish, and there is strong opposition to relocating public institutions such as the Korea Development Bank. Regarding this, a Special Committee official said, "Since the committee will continue to exist after the government is launched, organizational issues of the regional committee will be continuously discussed," adding, "Regarding regional jobs, since there are issues with regional operational systems, it is a matter that the committee must oversee."