Gyeonggi, Seoul, and Incheon Launch 'Capital Region Fair Economy Council'

[Suwon Ilbo=Reporter Park Noh-hun] Gyeonggi Province, Seoul City, and Incheon City have decided to work together to resolve social contradictions such as economic inequality and polarization by realizing a 'fair economy.'

On the 19th at the National Assembly Members' Building, Governor Lee Jae-myung of Gyeonggi Province, Seoul Mayor Park Won-soon, and Incheon Mayor Park Nam-choon—heads of three metropolitan local governments in the capital region—announced a joint declaration at the 'Inauguration Ceremony of the Capital Region Fair Economy Council' stating that they will work together for fair economy in line with the government's economic policy direction and present a new paradigm of 'decentralized fair economy' led by local governments.

With its inauguration today, the council concluded a 'Large-Scale Retail Store Urban Planning Location Management Agreement'—the first of its kind nationwide—and decided to pool efforts to protect alleyway commercial districts. Additionally, the council signed a 'Fair Trade Settlement and Mid-to-Large Enterprise Rights Protection Agreement' with the Ministry of SMEs and Startups and the Democratic Party, committing to eliminate unfair trade practices against subcontractors and commissioned businesses.

This marks an 'unprecedented instance in the history of local government inaugurations,' as Korea's representative metropolitan governments have joined hands to restructure the large-corporation-centered economic structure and eliminate unfair practices pervasive throughout society, positioning this as a strong first step toward realizing 'decentralized fair economy.'

Governor Lee Jae-myung stated, "Historically, when nations adopted policies bearing the character '均' (equality), such as the균역법 (Uniform Tax Law) or 均田法 (Equal Field System), the country prospered, and when monopoly and tyranny of the strong were severe, the nation faced crises or collapsed entirely. The same applies to the economic sphere—fairness is the most important policy." He continued, "A society where each person has equal opportunities, where individuals' gains are guaranteed in proportion to their contributions on the basis of fair competition, can inspire personal creativity and passion. The greatest role of the public sector is to maintain fair order. Efforts by Gyeonggi Province alone are insufficient, and cooperation among the economic community of the capital region is necessary, which makes today's gathering meaningful. I will strive to ensure that the important value of fairness is properly practiced in the field of daily life."

In particular, Governor Lee pointed out that with authority concentrated in the central government, local governments' capacity for action is limited, and proposed changing the official name from 'local autonomous entity' to 'local government.'

Seoul Mayor Park Won-soon said, "To address the 99-to-1 social inequality that corrodes society, we must abandon outdated rules," and added, "Based on the Capital Region Fair Economy Council, we will strengthen the policy capacity of local governments." Incheon Mayor Park Nam-choon remarked, "Through the Capital Region Fair Economy Council, we will make maximum efforts to ensure that the economically vulnerable can conduct economic activities without hardship."

The joint declaration includes establishing a continuous cooperation system through the formation of the 'Capital Region Fair Economy Council,' and committing to work together with central ministries for institutional improvements in fair trade and expansion of local government authority.

Additionally, the declaration includes content on maximizing the sharing of administrative resources and policy tools held by each local government, jointly developing collaborative projects, and making efforts to establish a nationwide Fair Economy Council with participation from all 17 metropolitan regions and provinces to solidify 'decentralized fair economy.'

With the announcement of the joint declaration, the officially launched council undertook its first official activity by concluding a 'Large-Scale Retail Store Urban Planning Location Management Agreement.'

Given that large-scale retail stores with substantial capital are encroaching on alleyway commercial districts dominated by small businesses, the main content is to protect small merchants and revitalize alleyway commerce by implementing location restrictions on large-scale retail stores from the pre-location decision stage in urban planning.

Accordingly, the council plans to push forward so that location management improvement plans suited to regional circumstances can be prepared by the end of 2020.

Following the first agreement, the council also concluded a 'Fair Trade Settlement and Mid-to-Large Enterprise Rights Protection Agreement' with the Ministry of SMEs and Startups and the Democratic Party.

The main content is to promote fair trade settlement through division of labor between the central government and local governments, as it is practically impossible for the central government's crackdown and supervisory efforts alone to protect hundreds of thousands of subcontractors and commissioned businesses.

To this end, the council will establish a 'Capital Region Subcontract Dispute Mediation Council' centered on the council and, through comprehensive cooperation with the Ministry of SMEs and Startups, conduct unfair trade surveillance activities, joint fact-finding surveys, and rapid damage relief for small and medium enterprises and small merchants.

The council also announced 'Priority Cooperative Projects for Capital Region Local Governments' to be pursued going forward.

The cooperative projects comprise 14 detailed tasks centered on 'five major areas': ▲Protection of alleyway commercial districts, small merchants, and SMEs ▲Swift identification and elimination of unfair trade practices in the field ▲Strengthened market surveillance to protect consumer rights ▲Investigation of emerging unfair trade practices on open markets and online platforms, and recommendations for institutional improvements ▲Realization of swift damage relief and accountable administration through strengthened local government authority.

The council plans to develop more concrete roadmaps by early 2020 and implement policy cooperation.

Meanwhile, the inauguration ceremony was attended by Vice Minister Kim Hak-do of the Ministry of SMEs and Startups, Vice Chair Ji Cheol-ho of the Fair Trade Commission, Democratic Party's Civil Life Roundtable Operating Committee Chair Nam In-soon, and the Yeouido Committee member National Assembly members including Permanent Committee Chair Kim Doo-gwan of the Committee for a Better Local Government.