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All About The Korean New Deal: A Focus on Regional Balance
  • By Choi Yu-ri, cub-reporter
  • 승인 2020.11.09 07:24
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▲ 4 goals of the Korean New Deal.

In 1930, to overcome the Great Depression, the President Roosevelt of the United States executed a New Deal Policy. This policy meant that the government could intervene in the market to create economic change. The Korean New Deal has similar goals and has been executed since 2020. The Korean New Deal has two pillars: The Digital New Deal which includes policies to enhance data-network-AI (D.N.A.) for digital innovation across industries, and the Green New Deal which includes policies to save the environment and economy by making large investments in eco-friendly projects. The goal is to invest 16 trillion won by 2025 to create 19.1 million jobs and enhance a strong safety net for job seekers. At the Second Korean New Deal Strategy Conference on October 13, it was announced that the Korean New Deal and the Regional Balance New Deal would be promoted to encourage national development.

The economic gap between the Seoul metropolitan area and the rest of the country is widening in the Republic of Korea. So the Regional Balance New Deal was added at the Second Korean New Deal Strategy Conference. The Regional Balance New Deal will invest 7.5 trillion won to the outside of the Seoul metropolitan area. In this conference Kim Kyung-soo, the Gyeongsangnam-do Province Governor, stressed the importance of Regional Balance, saying, “1.2 thousand young people from Gyeongsangnam-do leave for the Seoul metropolitan area every year. This means that the local economic ecosystem has a problem. That is why we need to shift from the existing centralized New Deal to a regional-focused New Deal."

As the New Deal Policy shifts its focus to regional centers, each region will carry out projects to prepare for the future. First, Gyeongsangnam-do, where Changwon University is located, aims to make Busan and Ulsan into mega cities in the southeastern region through the wide-area railway network. Although transportation infrastructure was expanded with the investment of 3.3535 trillion won (94.3 percent of the policy budget) in the Seoul metropolitan area, only 204.4 billion won (5.75 percent of the policy budget) was invested in the outside of the Seoul metropolitan areas where traffic is still inconvenient. So Gyeongsangnam-do will develop a transportation network that can integrate housing, jobs, and entertainment through the wide-area railway network. With this network, Gyeongsangnam-do plans to develop smart manufacturing industries and create a logistics program in its southeastern region.

The current status of offshore wind power of Jeollanam-do Province is 0.12GW, but they aim to produce 12GW per year to become the world’s 5th largest producer of wind power by 2030. Jeollanam-do is making an offshore wind power plant that can produce 8.3GW per year. This amount of 8.3GW could be used by the citizens of Seoul and Incheon. Jeollanam-do Province plans to make 120,000 jobs and create 450 companies related to wind energy through these policies.

Gangwon-do Province plans to develop a liquid hydrogen industry. Liquid hydrogen can provide energy to drone taxis that people can use, and each taxi can have a range of 600km. A liquid hydrogen train is also being developed. Just for example, it could complete a 10,000km route to Europe with only one charge.

In addition, all cities and provinces are working on the Korean New Deal. Daejeon aims to be a Fourth Industrial Revolution Special City based on developing artificial intelligence. Jeju plans to minimize wasted electricity through the liberalization of power transactions and by suspending all new vehicles with internal combustion engines by 2030.

The whole world is creating huge investments in digital and green industries to steer away from the coronavirus economic fallout, which has been the worst economic crisis since the Great Depression. The EU is investing 1,290 trillion won to create a carbon neutral continent, while China is investing 1700 trillion in industries related to The Fourth Industrial Revolution.

South Korea is striving for balanced regional development through digital and green industries. These policies will revolutionize the living space and workplace in the future and make life easier. It will boost the vitality of local economies and contribute greatly to job creation. It is hoped that the students of Changwon National University will be aware of the New Deal Policy and lead the upcoming infrastructure revolution.

By Choi Yu-ri, cub-reporter  y0uuri@naver.com

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