Suwon Mayor Lee Jae-joon: "Creating 'A City for All, One Suwon'"

[Suwon Ilbo=Reporter Jung Jun-seong] Suwon Special Mayor Lee Jae-joon said, "I will create 'A City for All, One Suwon' that protects the lives of all citizens and eliminates inequality."

At a press briefing held on June 1st at Suwon Convention Center one year ahead of the launch of the 8th popular election term, Mayor Lee stated, "Suwon will advance as a city that guarantees safety, health, abundance, and sustainability in our daily lives and resolves the sense of inequality felt by citizens," adding, "There will be many external difficulties, but we can overcome them if citizens stand with us."

Mayor Lee Jae-joon stated, "The fundamental reason for Suwon's economic deterioration is that companies are relocating to provinces due to the over-congestion zone classification under the Gyeonggi Region Readjustment Planning Act," emphasizing that "Korea must lower the excessive tax rates imposed on companies in over-congestion zones under the Metropolitan Area Readjustment Planning Act."

He continued, "Over-congestion zone regulations have become shackles that make it difficult for companies to operate in Suwon," and pointed out, "Cities designated as over-congestion zones are experiencing stagnated development due to excessive restrictions."

The keywords of today's briefing by Mayor Lee were 'economy' and 'One Suwon.' 'Economy' was mentioned 11 times, while 'One Suwon' and 'participation' were each mentioned 5 times.

Mayor Lee said, "Suwon's fiscal independence ratio, which was 89% in 2000, has been cut in half to 46% this year in just over 20 years, and economic vitality continues to decline," adding, "We must secure tax revenues stably by attracting businesses and investment, enabling us to create a livable city for citizens and revitalize the Suwon economy."

He continued, "Over the past year, we have established the foundation to promote citizen participation in city administration," stating, "Now Suwon will become a city created by citizens' hands."

He presented policies and projects requiring citizen participation including the mobile city administration participation platform 'Saevit Talk Talk,' the Suwon-style integrated care project 'Suwon Saevit Care,' 'Palm Gardens' created throughout villages, and 'Saevit Safety Keepers' responding to disasters.

【FULL TEXT OF PRESS BRIEFING】

Respected citizens of Suwon Special City and members of the press!

Hello. I am Lee Jae-joon, Mayor of Suwon Special City.

I sincerely thank you for your efforts in advancing Suwon.

A year has already passed. Today marks the first anniversary of when I was elected as Suwon's mayor by citizens.

I still vividly remember that day. I heard that many people were anxious in the early stages of the vote counting. However, I was not at all anxious. I firmly believed that the great citizens of Suwon would make the wisest choice. And my belief was correct. I offer my thanks once again to all citizens.

■ One Year Since Election

After my election, I promised to "become a mayor who keeps his promises and revitalize Suwon's economy by attracting businesses." I also told citizens that I wanted to become a warm and comfortable person, like a friendly neighbor with whom one has lived for a long time, someone with whom you can share a drink of makgeolli at any time. After taking office as mayor, I set "Renew Suwon, Brighten Citizens" as the vision for Suwon's 8th popular election term and established three major goals: a 'solid economic special city,' a 'clean living special city,' and a 'warm care special city.'

Over the past year, I have devoted all my efforts to laying the foundation for creating a 'new Suwon.' A new wind of change has blown through Suwon, and I am confident we have achieved noteworthy results.

After taking office, I repeatedly told citizens, "I will create the city through citizens' hands."

Over the past year, keeping 'listen with an open mind to gain understanding' in my heart, I have listened to citizens' voices, diligently visited the field, and shared in the joy and pain of citizens.

Now Suwon must advance as a city that guarantees safety, health, abundance, and sustainability in our daily lives and resolves the sense of inequality felt by citizens.

Building on the solid foundation laid over the year, I will create 'A City for All, One Suwon' that protects the lives of all citizens and eliminates inequality.

■ Why Must We Be an Economic Special City?

I have always said, "I will revitalize Suwon's economy and create an 'economic special city.'"

Let me start with a weighty topic. Suwon is a 'basic local government at the metropolitan city level' with the largest population in the nation and is the capital city of Gyeonggi Province, yet some people did not readily understand when I said the economy is difficult. Here is Suwon's reality:

In 2000, Suwon's fiscal independence ratio was 89%, approximately 40 percentage points higher than the national average for basic cities (50.6%). How is it now?

Suwon's 2023 fiscal independence ratio has been cut in half to 46% in just over 20 years. Suwon, which previously had a markedly higher fiscal independence ratio than other local governments, has now fallen to the national average level (45% in 2023).

It ranks 5th among Gyeonggi Province's 31 cities and counties, but is 15 percentage points lower than the city with the highest fiscal independence ratio (61.1%). The fiscal self-reliance ratio is 55.7%, ranking 24th within Gyeonggi Province. This is approximately 14 percentage points lower than the national average (69.6%) and Gyeonggi Province average (69.1%).

Why has Suwon's economic vitality declined so significantly?

Suwon is located in an 'over-congestion zone' under the Metropolitan Area Readjustment Planning Act. Over-congestion zone regulations have become shackles that make it difficult for companies to operate in Suwon. When companies are established and operated in over-congestion zones, they must pay several times the taxes—including registration and license tax, local education tax, and corporate income tax—so companies leave Suwon.

In March, the Korea Chamber of Commerce and Industry and the Industrial Research Institute surveyed 159 companies in the metropolitan area (52 large enterprises, 52 mid-sized companies, and 55 small and medium enterprises) on 'intention for relocation to or establishment of new facilities outside Seoul,' and 28.9% of responding companies answered they are "considering relocation outside the metropolitan area or investment in new or expanded facilities within five years."

Companies that have relocated to or are considering relocation to provinces responded that 'tax incentives or tax benefits such as deductions (37.7%)' policies had significant influence. If we do not establish special measures, even the remaining companies will continue to be lost.

Suwon has a world-leading company that everyone knows. Recently facing difficulties due to the downturn in the semiconductor industry, this affects other companies as well. As corporate local income tax paid by companies decreases overall, tax revenue is declining.

We must secure stable tax revenue by attracting businesses and investment, enabling us to create a livable city for citizens and revitalize the Suwon economy. This is why I made 'economic special city' and business attraction my first pledge. Over the past year, I have worked hard to keep that promise.

■ Results of Business and Investment Attraction

Starting with concluding an investment agreement with SD Biosensor Co., Ltd., which had 2021 sales of 3 trillion won on my first day in office, in March of this year I concluded an investment agreement with Focus H&NS;, the nation's largest AI security and control solution company. In April, I concluded an investment agreement with Integris, an American semiconductor comprehensive solution company.

Currently, we are in discussions with companies numbered 4 through 6 for investment attraction. While it is premature to discuss specific details, I will share good news soon. Over the past year, I have frequently met with business leaders to have candid conversations, learning about their difficulties and their wishes. I also met with university presidents to discuss ways of industry-academia cooperation, including business attraction, and in April concluded a 'mutual development business agreement' with five universities in the city.

The presidents of the five universities promised to "promote business attraction on available land within the universities and cooperate with Suwon's business attraction initiatives."

As important as attracting new businesses is supporting existing businesses so they do not leave Suwon.

One necessary element when operating a business is financial support. To enable outstanding startups and advanced technology companies to receive investment, we plan to launch the 'Suwon Business Saevit Fund' in the second half of this year. The Suwon Business Saevit Fund will be organized and operated with a scale of 100 billion won or more, consisting of Suwon City's investment fund (small and medium business promotion fund) of 100 billion won, the Korea Development Fund's investment of 600 billion won (a government-led fund), and 300 billion won in private capital. Since there is a mandatory investment commitment requiring at least twice Suwon City's investment amount to be invested in Suwon companies, outstanding Suwon businesses will be discovered and investment will be activated.

■ Mobile City Administration Participation Platform 'Saevit Talk Talk'

Over the past year, we have established the foundation to promote citizen participation in city administration. Now Suwon will become a city created by citizens' hands.

We will operate 'Saevit Talk Talk,' a mobile city administration participation platform that enables all citizens to conveniently voice their opinions in June. We will conduct a pilot operation for the month of June and begin formal service from July 1st. Through Saevit Talk Talk, citizens can propose policies and engage in discussions with other citizens through comments. Good proposals will be developed into policies through discussion. We also plan to hold discussion forums to determine whether proposed agendas should become policies. Saevit Talk Talk will also conduct surveys to gather citizen opinions.

Saevit Talk Talk will become a window for realizing direct democracy. For Saevit Talk Talk to fulfill its role, active citizen participation is needed. I hope all citizens will install the app and actively voice their opinions. I will listen to your opinions and run city administration accordingly.

■ Suwon Saevit Care

The Suwon-style integrated care project 'Suwon Saevit Care,' in which community centers identify neighbors struggling to make ends meet and provide care together with public institutions, will begin pilot operation in eight districts starting in July.

It consists of '4 major living-centered services'—home visits and housekeeping support, companion support, psychological support, and temporary shelter—and 'resident-proposed services' directly provided by the community.

We will cultivate residents who know the community and neighbors well—including members of the district community welfare council and neighborhood chiefs—as 'Saevit Care Givers' to jointly identify neighbors in need of care.

We will create a system where residents develop customized care services needed in each district and provide support to neighbors who need help. The Suwon Saevit Care project can be applied for through 'Saevit Talk Talk.'

■ Palm Gardens and Suwon Arboretum

Initiatives to create a 'clean living special city' are also proceeding without disruption.

Palm Gardens, which have been created throughout Suwon since this year, are open gardens jointly created and maintained by citizens. Palm Gardens can be created anywhere there is space—in village squares, on leftover land, in parks, and on vacant land. Palm Gardens will enrich villages and change the paradigm of Korea's garden culture and park and green space policy.

Soon in Suwon, you will encounter beautiful gardens after just a five-minute walk. If you join with citizens, Palm Gardens will become a model for Korea's urban green space policy and eventually a policy that draws global attention. The Wol-wol Arboretum and Yeonghung Arboretum, which recently opened, are accessible for citizens to visit at any time. We will nurture them as exemplary urban arboretums of high quality.

Palm Gardens and Suwon Arboretum will also play a major role in realizing carbon neutrality.

■ Shortening Redevelopment and Reconstruction Project Periods

Currently, we are conducting a 'feasibility review study for the 2030 Urban Residential Environment Maintenance Basic Plan,' and we plan to display and publicly notice the basic plan revision. After deliberation by the Urban Planning Committee, we plan to announce the revised basic plan in December. By revising the basic plan, we will shorten the redevelopment and reconstruction project period that previously took 15 years or more to 5-10 years.

When requested by residents, we will shorten the timing of building reconstruction safety inspections, and we will provide support for project promotion costs in areas pursuing maintenance projects.

For multi-unit housing that has exceeded 15 years since final construction approval and remodeling housing union establishment districts, we will streamline administrative procedures to shorten remodeling project periods and establish a 'remodeling public-private joint task force.' We will provide support for safety inspection costs and consulting.

■ A City for All, One Suwon, Completed Through Citizen Participation

Have you felt the changes over the past year?

Over the past year, I have worked diligently with civil servants to establish the foundation for 'renewing Suwon and brightening citizens.' Building on this solid foundation, I will complete 'A City for All, One Suwon' together with citizens.

Suwon citizens' active participation can create a city for all, one Suwon.

All of Suwon's policies and projects—the mobile city administration participation platform 'Saevit Talk Talk,' the Suwon-style integrated care project 'Suwon Saevit Care,' 'Palm Gardens' created throughout villages, and 'Saevit Safety Keepers' responding to disasters—are difficult to realize without citizen participation.

I believe in the power of the great citizens of Suwon. I hope you will join me in creating a city for all, one Suwon. 'A City Created by Citizens,' Suwon will become a model for Korean cities and cities around the world.

■ Citizen-Led Festivals

Many events will be held in Suwon this autumn.

The Suwon Hwaseong Cultural Festival, which has established itself as Korea's representative festival, reaches its 60th year, and 'Eco-Mobility Suwon 2013' marks its 10th anniversary.

The 60th Suwon Hwaseong Cultural Festival will be a 'citizen participation festival' led by citizens. We are preparing diverse citizen-led programs, including themed performances featuring citizen actors. The Eco-Mobility Suwon 10th Anniversary Festival will also be citizen-led. When we announced the Eco-Mobility Suwon 2013 festival about 10 years ago, some residents expressed concerns. I visited the sites to continue listening to residents' voices and convinced them.

Haenggung-dong, which had been a declining old downtown, regained vitality after Eco-Mobility Suwon 2013 and is now a nationally famous destination.

The Eco-Mobility Suwon 10th Anniversary Festival will be an opportunity to bring attention to eco-mobility and Haenggung-dong once again.

From October 24-27, the '27th World Korean Entrepreneurs Convention' will be held at Suwon Convention Center. With approximately 1,000 Korean entrepreneurs from 67 countries around the world participating, the World Korean Entrepreneurs Convention is the largest event hosted by the World Korean Traders Association. It is an excellent opportunity to introduce Suwon and Suwon companies to the world. I will do my best to prepare for a flawless event.

■ Metropolitan Area Readjustment Planning Act Revision

Let me conclude the briefing by discussing the economy once more.

As I mentioned earlier, the fundamental reason for Suwon's economic deterioration is that companies are relocating to provinces due to the over-congestion zone classification under the Metropolitan Area Readjustment Planning Act. Even the quality businesses that remain in Suwon are preparing to relocate to local governments with fewer regulations. The Metropolitan Area Readjustment Planning Act is the biggest obstacle to business attraction. Cities designated as over-congestion zones are experiencing stagnated development due to excessive restrictions.

In the 1970s-80s, developed countries like France, Britain, and Japan also enacted laws similar to the Metropolitan Area Readjustment Planning Act, but due to excessive regulations hindering national economic development and weakening national competitiveness, they overhauled them substantially. Now it is time for Korea to reconsider the Metropolitan Area Readjustment Planning Act, enacted in 1982.

First, excessive tax rates must be revised to reasonable levels.

We must lower the tax rates imposed on companies in over-congestion zones and work with local governments in over-congestion zones to voice our position so the Metropolitan Area Readjustment Planning Act can be revised.

On June 19th, a 'National Assembly Discussion Forum for Paradigm Shift in Metropolitan Area Over-Congestion Zones' hosted by Suwon-area members of the National Assembly will be held. This will be the first step in widely informing about problems with the Metropolitan Area Readjustment Planning Act and the necessity of its revision.

I will actively support the construction of Gyeonggi International Airport, which will give wings to the global market entry of companies in Suwon and the southern Gyeonggi region.

The government announced plans to invest 300 trillion won to establish the world's largest advanced system semiconductor cluster in Gyeonggi Province. A semiconductor mega-cluster will be completed together with existing semiconductor production complexes in southern Gyeonggi. To export products produced in the semiconductor cluster to the entire world, an international airport is necessary. Construction of Gyeonggi International Airport is a task that can no longer be postponed. Gyeonggi International Airport will greatly benefit the global market entry of companies based in Suwon. I will request the Ministry of Land, Infrastructure and Transport for 'early commencement of prior feasibility study,' and will continue to consult with Gyeonggi Province and the National Assembly.

■ Closing

One year ago, the great citizens of Suwon elected me, Lee Jae-joon, as your mayor, and I told you I would "become a mayor who keeps his promises," and I committed to becoming your warm, comforting "friendly neighbor."

Canceling my inauguration ceremony and rushing to the flood disaster site on my first day in office was also a small practice for the citizens who chose and believed in me.

Without forgetting my original heart, I will fulfill each promise I made with citizens.

Now Suwon will advance as a city that guarantees safety, health, abundance, and sustainability in our daily lives and resolves the sense of inequality felt by citizens. While there will be many external difficulties, we can overcome them if you stand with us. I will protect the lives of all citizens and create 'A City for All, One Suwon' that eliminates inequality.

I ask for your continued trust and support. I will always listen to citizens' voices and move forward step by step.

Thank you.

June 1, 2023

Lee Jae-joon
Suwon Special Mayor