Local Governments Oppose Strongly to the Relocation of Enterprises

As the government is enforcing its plan to move government agencies and large enterprises to the outer Seoul region in response to its new policy of Local Balance Growth Policy, local governments in the metropolitan area are strongly voicing their protests.

However, other local governments seem to welcome this new movement--promising various incentives for those agencies and enterprises that decide to shift their locations.

Government Plan—

According to the special bill established last month, the government is proceeding with its plan to move the metropolitan-concentrated enterprises and government agencies to other regions.

Currently, there are a total of 268 government agencies in the metropolitan area, including 89 immediate branches of the central office.

The National Balance Development Committee is reviewing the feasibility of relocating 244 of these agencies, excluding those that have excessively high moving costs or national influence. The committee will select and announce the first relocating agencies before August.

The Ministry of Commerce, Industry and Energy (MOCIE) will announce the region where the metropolitan enterprises will be located. If a business of more than 100 employees decides to move to the selected region, financial subsidy such as rental cost or site fee will be provided.

An official of the Ministry said, “At the Economic Confabulation held on May 21, the ministry will come up with specifics on how to select and announce the region for relocation,” and added, “Soon, the criteria upon which the region and support will be decided will be announced.”

Metropolitans Oppose—

As it became known that the government is not only planning to include the Over-concentrated Area in the relocating region, but also the Growth Management Area and Nature Preservation Area, regional protest is growing.

Of the 31 local governments of Gyeonggi Province, 11 governments that are under the Growth Management Area have formed an Emergency Countermeasure Committee.

Ansan Mayor Song Jing-sub, the president of the committee, and 10 other local government leaders met with MOCIE Vice Minister Kim Chil-doo and protested, “The relocation region should be confined to the Over-concentrated Area.”

The Emergency Countermeasure Committee claimed, “If the large enterprises move, hundreds of accomplice companies cannot help but move with them, causing a hollowing-out effect of the metropolitan industry.” The committee also added, “The current government policy is against the former law that relocated population and industrial facilities from the Over-concentrated Area to the Growth Management Area.”

The local governments are also holding public demonstrations and a signature-collecting drive. There are now 935 businesses that have over 100 employees in Gyeonggi Province.

With the relocation plan, the Gyeonggi government has also filed a petition to the central government to confine the relocating agencies to those in the Over-concentrated Area.

Kyung-Hyun Nam Jae-Myoung Lee bibulus@donga.com egija@donga.com