Korea to build city as science, education hub

16.5t won blueprint scraps 2005 plan to relocate parts of govt to Sejong

South Korea yesterday announced a 16.5 trillion won (S$20.4 billion) blueprint to develop a new city as a science and education hub, scrapping controversial plans to relocate much of the government there.

The country’s biggest business group Samsung has signed a deal to move some operations to Sejong City, along with the Hanwha, Woongjin and Lotte groups, said Prime Minister Chung Un-Chan.

Yesterday’s announcement officially axes a plan unveiled in 2005 by then-President Roh Moo-Hyun to relocate nine ministries and four subsidiary agencies to the proposed city 150 kilometres south of Seoul.

Mr Roh’s liberal government had said the aim was to promote balanced regional development in a country where almost half the population lives in Seoul or surrounding cities.

The plan was also attractive to the Chungcheong region, whose traditionally uncommitted voters have often swung elections.

But Mr Chung’s office said it ‘would have resulted in inefficiency and waste’ of national resources.

However, the current conservative government will face an uphill battle securing parliamentary approval to change the plan, against objections from the opposition and from a sizeable faction of the ruling Grand National Party.

‘The Sejong City plan . . . is a task of correcting past errors and paving the ground for a new future,’ the prime minister said. ‘If the promise of the past was politically driven it would be courageous for a leader to correct it, albeit belatedly.’

The government has decided to create an economic hub centred on education and science in Sejong with total investments of 16.5 trillion won (S$20.4 billion), including 4.5 trillion won from the private sector, Mr Chung said.

‘We expect Sejong will grow into a self-sufficient city with a population of 500,000 with 246,000 new jobs by 2020.’

The city is named after the revered 15th-century monarch who invented the country’s alphabet.

The government has since 2005 built roads and other basic infrastructure as a prelude to transforming the country town into a sprawling modern city.

The government will provide incentives such as cheaper land, tax cuts and subsidies to lure firms, college campuses, research institutes and hospitals there.

Some 1.9 million square metres of land will be open for foreign investors.

An international science and business belt will be centred on Sejong, the ministry of education, science and technology said, adding that this could create new growth opportunities and allow the new city to become self-sufficient.

‘We believe it will spur balanced development and enhance the competitiveness of our nation,’ the Korea Employers’ Federation said. Samsung promised to invest 2.05 trillion won in the city.

Source: Business Times, 12 Jan 2010