The Democratic Party of Korea is pursuing the establishment of the Southeast Regional Industrial Investment Corporation to support the strengthening of industrial competitiveness in Busan, Ulsan, and Gyeongnam (Busan-Ulsan-Gyeongnam). It is interpreted as a bill introduced to seize the sentiments of the 'PK (Busan-Gyeongnam)' in light of the possibility of an early presidential election.
According to the political circles on the 7th, Min Byung-duk, a Democratic Party lawmaker and member of the National Assembly's Political Affairs Committee, will introduce the 'Act on the Establishment and Operation of the Southeast Regional Industrial Investment Corporation' as the primary sponsor. The bill is being promoted mainly by the party leadership and the Busan City Party, and it is currently going through the gathering of co-sponsors and signatures.
The Southeast Regional Industrial Investment Corporation aims to systematically support the shipbuilding, automotive, parts and materials, bio, and renewable energy industries located in the southeast region. It will create the Southeast Regional Industrial Innovation Fund to provide investments and loans to corporations located in the southeast region. The capital will be established at 3 trillion won, contributed by the government, Busan City, Ulsan City, Gyeongnam Province, Korea Development Bank, the Small and Medium Enterprises Bank, and the Korea Export-Import Bank. In addition to financial investment, it will also conduct industrial research, consulting, and infrastructure development.
The establishment of the Southeast Regional Industrial Investment Corporation is designed as a follow-up policy to the Democratic Party's 'Busan-Ulsan-Gyeongnam Mega City 2.0' strategy. The Busan-Ulsan-Gyeongnam Mega City 2.0 is a tailored strategy for Busan, Ulsan, and Gyeongnam that aims to enhance global competitiveness by integrating the region into a single metropolitan economic zone. The establishment of the Southeast Regional Industrial Investment Corporation has been highlighted as an institution to provide financial investment to southeast regional corporations.
In the justification for proposing the bill, Min noted, "The southeast region has grown into a hub for the shipbuilding, automotive, petrochemical, and machinery industries, but its competitiveness has weakened due to changes in the global industrial environment and shifts in the regional industrial structure." He added, "Due to the capital-raising and investment attraction disadvantages faced by southeast regional corporations under the capital-centric financial investment infrastructure focused on the metropolitan area, there is an urgent need to establish a tailored financial support system based on regional hubs to improve this situation."
Regarding the bill for the establishment of the Southeast Regional Industrial Investment Corporation, Lee Jae-myung, the leader of the Democratic Party of Korea, had also reported to the party leadership during his visit to the Busan Port Authority to emphasize the 'Arctic Route' the day before. If he presented the Arctic Route as a long-term vision to gain the support of PK, which is classified as a difficult area for the Democratic Party, it seems that they will highlight the Southeast Regional Industrial Investment Corporation as a substantial support.
A key official from the Democratic Party's leadership said, "I have received a report that the party leadership, including Lee, is preparing the bill for the establishment of the Southeast Regional Industrial Investment Corporation in Busan," and added, "A related press conference is expected to be held soon."
Earlier, Lee also emphasized the strengthening of industrial competitiveness in the southeast region and balanced regional development during his visit to Busan to gain the sentiments of PK. He stated, "The southeastern region's economy is in a very difficult state. In particular, the southern belt is facing a crisis as petrochemicals and steel are losing out to China" and noted, "There might be regrets about the slow progress made on the issue of balanced regional development, but it will be strongly pursued moving forward."