Lee's deregulation plan for Seoul stirs backlash

SEOUL, Nov. 5 (Yonhap) -- President Lee Myung-bak's plan to lift a ban on
industrial developments in the capital Seoul and its adjacent areas faced stiff
opposition Wednesday from a growing number of legislators who claim the plan is
unfair to other regions.

The plan being pushed by the conservative Lee government centers on a drastic
easing of regulations on the construction of factories in Seoul and its
surrounding Gyeonggi Province.
It is a massive shift from the balanced development policy pursued by the former
Roh Moo-hyun government, which banned further industrial expansion in the already
saturated capital region in the hopes of spreading economic resources to
underdeveloped provinces.
While opposition parties have been the most outspoken critics of the policy, even
members of Lee's Grand National Party (GNP) are beginning to stress the need to
revise the controversial plan to quell the mounting anger from provincial
entities.
"I will ask the president to re-examine the plan," Prime Minister Han Seung-soo
told a parliamentary session Wednesday, as several lawmakers urged him to convey
their objections. "But please understand this plan will contribute to overall
national development in the long run."
"The government has never overlooked the importance of balanced regional
development," Han added. "Follow-up measures will be revealed shortly and people
will begin to understand."
Lee and his aides claim that deregulation of the capital and its surrounding
environs is critical to the job creation, and will boost investment and
revitalize the overall slowing economy.
The president dismissed criticism of the plan as a "mere misunderstanding" of
government policies, saying earlier in the week that all development profits
stemming from the proposed deregulation will be used in developing provincial
areas.
Provincial entities, however, have threatened to fight the measure, which they
claim will aggravate the already existing development gap between the capital and
other regions.
Legislators, whose constituencies are outside of Seoul and Gyeonggi Province, are
also escalating opposition efforts.
"It is a discriminatory policy against other regions," said Chung Sye-kyun,
leader of the main opposition Democratic Party. "The plan breaches the
Constitution, which stipulates government responsibility for balanced development
around the country."
Park Geun-hye, former chairwoman of the ruling GNP, also raised objections to the
plan, saying it was the "wrong priority" for the nation. Park represents the city
of Daegu, a traditional GNP stronghold in southeastern Gyeongsang Province.
"(If the plan goes through) it might be too late to spread development to other
regions. The plan must be revised," she said.
hayney@yna.co.kr
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