(Unofficial Translation)

Good afternoon everyone.

A year after the Regionally Balanced New Deal was first taken up at a Korean New Deal strategy meeting, we have convened this gathering to discuss a more in-depth strategy for balanced national development with mayors and governors. In particular, holding today’s meeting in Sejong City, a symbol of balanced development, is particularly meaningful; it serves as an opportunity to revive the significance of the recently promulgated act to establish a branch of the National Assembly in Sejong and to provide stronger momentum for balanced national development.

Establishment of the National Assembly’s Sejong branch will help reduce waste from inefficient administration and, at the same time, allow even administrative functions related to the National Assembly to be concentrated in Sejong. With this, Sejong City will be able to move closer to being the bona fide administrative capital. I look forward to the city serving as a new driving force for overcoming unipolarity where the Seoul metropolitan area serves as the center of everything.

My Administration made it an administrative goal to advance regions evenly and has vigorously pushed for balanced national development. We have also provided wide-ranging support for regional development and innovation, including building local neighborhood infrastructure, creating mutually beneficial local jobs and establishing special regulation-free zones. In particular, locally driven digital and green transitions are being expedited with the Regionally Balanced New Deal as a key pillar of the Korean New Deal.

Of note, a breakthrough for autonomy and decentralization is deemed to have helped usher in the era of decentralization and autonomy 2.0. It is very regrettable that the Constitution could not be revised for that cause, but the overhaul of the Local Autonomy Act has significantly expanded local residents’ sovereignty and right to govern themselves. An autonomous local police system is fully up and running, improving public security services closely linked to everyday neighborhood activities. Moreover, an act to collectively transfer administrative authority from the central to local governments – a key task of decentralization – has been enacted. The first and second steps for decentralization have been consecutively taken, significantly expanding local governments’ financial resources by making their taxes a considerably higher portion of total tax revenue, up from 22.3 percent to 27.4 percent. I believe the foundation for “locally led balanced national development” has been further cemented.

These achievements, however, have proven inadequate when it comes to reversing ongoing concentration in the Seoul metropolitan area. This area accounted for more than half of the nation’s total population as of 2019, and the concentration of economic power is intensifying further. As a result, the harmful consequences of overcrowding in terms of housing and transportation in metropolitan Seoul are getting more serious. For their part, provincial communities are losing vitality to such an extent that people are starting to talk about the crisis of local areas possibly dying out. This is a task of paramount importance that must be resolved nationally for the sustainability of our society.

To end this Seoul-centered unipolar system, we have to find an extraordinary balanced-development strategy that differs completely from any employed so far – one based on pan-regional cooperation. This is about making the Republic of Korea multipolar by creating integrated economic-residential zones that are on par with the Seoul metropolitan area and that transcend the boundaries of provinces and metropolitan cities as well as counties and districts. The key is to build pan-regional economic-residential zones, thereby creating an environment that allows local youth to pursue their dreams to the fullest in a provincial area with a decent work place and home without moving to the Seoul metropolitan area. If this new model of pan-regional cooperation succeeds and spreads, it would be possible to reverse the trend of concentration in the metropolis and to move toward a Republic of Korea that guarantees shared prosperity nationwide. 

Previous administrations attempted pan-regional cooperation. However, they only presented blueprints without any support for implementation. This time, however, is different. Local areas that strongly sense a state of crisis are taking the initiative, and an institutional foundation that backs pan-regional cooperation is being systematically established. Following the first complete revision of the Local Autonomy Act in 32 years, two or more local governments will be able to jointly establish and operate special local governments from January next year, enabling institutional support for pan-regional cooperation. The Special Act on Balanced National Development will be revised as early as possible to reflect pan-regional cooperation as a key policy for balanced national development. Along with active financial support, an integrated, pan-government implementation system will also come into operation. In addition,

we will introduce and support such procedures as a pan-regional special agreement and a decentralization agreement to swiftly create a success model.     

To create integrated economic-residential zones, the Government will build intra- and interurban transportation networks as soon as possible and foster growth hubs where jobs, talented individuals and capital harmonize in a virtuous cycle. Locally led, pan-regional strategic industries will be intensively supported, and an environment that encourages businesses to invest will be actively nurtured. While pursuing local university innovations, for instance, creating a model for university resources to be shared across regions, we will establish a system for nurturing local professionals in multifaceted ways. We will also operate a pan-government cooperation system to this end.

Pan-regional cooperation is a locally driven strategy backed by the Government. In February, Busan, Ulsan and Gyeongsangnam-do Province presented their megacity strategy for the country’s southeastern region and started pan-regional cooperation in earnest ahead of others. Currently, we are accelerating efforts to achieve our goal of establishing a special, pan-regional local government within the first quarter of next year. The core pan-regional area projects being sought are making considerable progress. The Government will provide all the support available so that the special local government of Busan, Ulsan and Gyeongsangnam-do can be launched before the end of my Administration and move forward to become a leading pan-regional cooperation model. In particular, for a pan-regional cooperation model to succeed, mass transit networks covering wide areas must be formed – like the one for metropolitan Seoul – so people can leave, go about their business and return home within a day. I urge you to actively push for such networks by weighing the greater value of balanced national development against immediate economic viability.

Recently, cooperation between Daegu and Gyeongsangbuk-do, Gwangju and Jeollanam-do, and the Chungcheong-do provinces has been in full swing. In particular, Daegu and Gyeongsangbuk-do aim to establish a special local government in the second half of next year and Gwangju and Jeollanam-do and the Chungcheong-do provinces by 2024. Metropolitan cities and provinces are increasing cooperation with smaller cities, counties and districts and cooperation among smaller cities, counties and districts is also up nationwide. The Government will do everything in its power to provide assistance if local areas push creative measures for cooperation tailored to their own characteristics. My Administration will make pan-regional cooperation a new balanced national development strategy and lay the foundation for transforming the Republic of Korea into a multipolar social system. I ask the central and local governments and the National Assembly to join forces to build a country where the Seoul metropolitan area and other regions can all grow in mutually beneficial ways and where everyone prospers together.

Thank you.