Deputy Prime Minister Gu Yun-cheol, who also serves as the Minister of Economy and Finance, compared the regional stagnation caused by concentration in the capital area to "economic arteriosclerosis," expressing his commitment to revitalizing the local economy.
On the morning of the 14th, Deputy Prime Minister Gu stated at the opening remarks of the Economic Ministers' Conference held at the Government Seoul Building, "Right now, all resources and infrastructure are concentrated in the capital area," and noted, "Resources are not circulating to the regions, which is reducing growth capacity."
He further emphasized, "If we cannot address the imbalance between the capital area and the regions, our economy could fall into arteriosclerosis," adding, "We will ensure the local economy is revitalized so that blood circulates through it."
In particular, he presented revitalization of local construction investment as a key countermeasure. Deputy Prime Minister Gu stated, "We will boldly change the financial support methods to allow local governments, which know their regions best, to lead development strategies," adding, "We will strengthen comprehensive support for region-specialized future strategic industries, including finance, tax, and manpower acquisition."
As a financial reinforcement measure, he explained that starting next year, the local government comprehensive subsidies from the local special account will be expanded from 3.8 trillion won to over 10 trillion won, promoting "tailored investments" allowing local governments to autonomously decide on the scale of projects and investments.
During the meeting, discussions included ▲ reinforcement measures for construction investment centered on local areas ▲ measures to extend the lowering of fuel taxes, among others. Deputy Prime Minister Gu said, "We will revive the construction market in local areas that have been sluggish for a long time and create additional demand for local dwellings through tax incentives and public purchases."