Moon says his New Deal linked with balanced national growth drive

SEOUL, July 21 (Yonhap) -- President Moon Jae-in said Tuesday that his stated Korean-version New Deal initiative reflects a push for balanced growth between the densely populated greater Seoul area and other regions across South Korea. The Korean version of the New Deal would serve as a "steppingstone" for the recovery of regional economies outside the capital area, he said during a weekly Cabinet meeting. The project is intended to "shift the axis of national development" from the capital and nearby cities to local areas, according to the president. "(The government) will do its best for the Korean version of the New Deal to provide fresh vigor to local economies and become a turning point to speed up balanced national development," he stressed. Moon was effectively presenting another guideline for what would be a signature policy task during the remainder of his tenure to end in May 2022. Last week, he announced plans to use 160 trillion won (US$133 billion) by 2025 to create 1.9 million jobs under the government-private sector team project aimed at overcoming the novel coronavirus-led economic crisis and preparing for a new era. He described it as a project for the "grand transformation" of South Korea through a set of digital infrastructure and environment-friendly programs. "Many of the (envisioned) major projects will be symbols of regional changes," Moon told Cabinet members, citing green energy, green smart schools and green industrial complexes as examples. Moon's remarks connecting the New Deal with efforts for balanced national growth and economic development came amid a growing public outcry over his administration's failure to curb soaring housing prices, especially in Seoul and adjacent towns, where half of the country's 52-million population reside. Moon made no direct mention of the real estate issue, speaking briefly in front of pool reporters at the start of the Cabinet session. On Monday, Rep. Kim Tae-nyeon, floor leader of the ruling Democratic Party, openly proposed relocating the presidential compound, the National Assembly and more government offices out of Seoul to the administrative city of Sejong, 130 kilometers south of the capital. He said it can be a way to "decentralize the capital area and stabilize the overheating property market." "Completing the (creation of) the administrative capital is an essential strategy for balanced national development and innovative growth of local areas," Kim said in a parliamentary speech. lcd@yna.co.kr (END)