Harsh words were exchanged between the government and Gyeonggi Province over how much to relax regulations against construction and enlargement of factories in the area around Seoul. The problem was expressed last weekend when Gyeonggi Province Governor Sohn Hak-kyu left his place in the middle of a meeting of a committee on capital area development. Yesterday, Presidential Committee on Balanced National Development chairman Seong Gyeong-nyung said foreign investment firms would be permitted to build factories in the area, and Governor Sohn responded by saying the move was “fortunate,” so things are looking slightly better. But the confrontation over the major points of contention remains.
The special exception to the regulations on factory construction and enlargement in the Seoul area enabled foreign investment companies to build factories in 25 high-tech industries for a limited time ending late last year, and permitted local companies only to expand existing factories in 14 industries. There had been debate over extending the temporary exemptions, over whether to allow equal opportunities to local firms, and over whether to expand the range of industries from the original 25. Gyeonggi Province and some media even criticized the government for driving away foreign firms, but this seemed very much like an attempt to play public opinion. In the case of foreign firms, it had already been decided to permit them to build factories even before Chairman Seong’s announcement. Gyeonggi Province wanted the regulations relaxed immediately, while the government wanted to wait and see how its plan for balanced regional development materialized before lifting the regulations.
As economic recovery is urgent, calls to relax the factory regulations initially appear persuasive, but they could lead to a retreat in policies against overcrowding in the capital region and cause problems in balanced regional development. Investment is urgently needed, but as balanced regional development is also a national long-term plan, it doesn’t help to have intense confrontation or to look at only one side. Even if we selectively permit some investors who are in a hurry and might place their investment in another country to build factories, we need to adopt a cool attitude and carefully approach the relaxation. Relaxing regulations in the capital area is appropriate when premised on balanced regional development. Before taking the shovel to the new administrative city, the transfer of public industries to the provinces and other regional activation countermeasures, one mustn’t rush to disarm the regulations on the capital district.
The Hankyoreh, 12 May 2005.
[Translations by Seoul Selection (EIP)]
[Editorial] Cool Attitude Required in Debate over Capital District Regulations |
