Suwon Mayor Lee Jae-jun: "I Will Create 'A City for All, One Suwon'"

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

The mayor made this statement at a press briefing held at Suwon Convention Center on June 1st ahead of the Popular Election 8th term's first anniversary, adding, "Suwon will become a city that guarantees safety, health, abundance, and sustainability in the lives of our citizens and resolves the sense of inequality that citizens feel." He continued, "While there will be external difficulties, we can overcome them if citizens stand with us."

Mayor Lee Jae-jun stated, "The fundamental reason for Suwon's economic deterioration is that companies are leaving for provincial areas due to the Amended Metropolitan Regulation Plan's (hereafter referred to as AMRP) overpopulation-suppression zone designation." He emphasized, "Our country must also lower the excessive tax rates imposed on businesses in overpopulation-suppression zones under the AMRP."

He further pointed out, "The overpopulation-suppression zone regulations have become shackles that make business activities difficult in Suwon," and "Cities designated as overpopulation-suppression zones are experiencing stagnated development due to excessive restrictions."

The keywords of Mayor Lee Jae-jun's briefing on this day were 'economy' and 'One Suwon.' He mentioned 'economy' 11 times and 'One Suwon' and 'participation' 5 times each.

The mayor stated, "Suwon's fiscal self-reliance rate, which was 89% in 2000, has been cut in half to 46% this year after more than 20 years, and economic vitality is declining steadily." He continued, "We must attract businesses and investment to secure stable tax revenue, enabling us to create a livable city for citizens and revitalize Suwon's economy."

He added, "Over the past year, we have established a foundation to encourage citizen participation in city administration," and "Now Suwon will become a city created by the hands of citizens."

He presented policies and projects requiring citizen participation, including the mobile civic participation platform 'Saebit Talk Talk,' the Suwon-style integrated care project 'Suwon Saebit Care,' 'Palmprint Gardens' being created throughout neighborhoods, and 'Saebit Safety Keepers' for disaster response.

【Full Press Briefing】

Distinguished citizens of Suwon Special City and members of the press,

Hello. I am Suwon Special City Mayor Lee Jae-jun.

I sincerely thank all of you for working hard for Suwon's development.

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

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

■ Reflections on One Year After Election

After my election, I promised, "I will become a mayor who keeps promises. I will revitalize Suwon's economic vitality by attracting businesses." I also told citizens that I wanted to become a comforting person, like a neighbor I've lived next to for a long time, someone they could always enjoy a drink with. After taking office as mayor, I set the vision "Suwon renewed, citizens brightened" for the Popular Election 8th term and established three major goals: 'a robust economic special city,' 'a clean living special city,' and 'a warm care special city.'

Over the past year, I have dedicated all efforts to laying the foundation for creating 'a new Suwon.' A new wind of change has blown through Suwon, and I am confident that there have been remarkable achievements.

After taking office, I repeatedly said, "I will create the city with the hands of citizens."

Over the past year, keeping in mind 以聽得心 (understanding through listening), I have listened to the voices of citizens and diligently visited the field to share in citizens' joys and sorrows.

Now, Suwon must move toward becoming a city that guarantees safety, health, abundance, and sustainability in the lives of our citizens and resolves the sense of inequality that citizens feel.

Based on the solid foundation laid over the past year, I will work with citizens to create 'A City for All, One Suwon' that protects the lives of all citizens and resolves inequality.

■ Why Must We Become an Economic Special City?

I have always said, "I will restore Suwon's economic vitality and create an 'Economic Special City.'"

I will start with something a bit heavy. Suwon is the 'basic autonomous city at the metropolitan level' with the largest population in the entire nation and is the provincial city of Gyeonggi Province, yet some people could not readily understand when I said the economy is in difficulty. This is the reality of Suwon.

In 2000, Suwon's fiscal self-reliance rate was 89%, nearly 40 percentage points higher than the national average for basic cities (50.6%). What about now?

In 2023, Suwon's fiscal self-reliance rate is 46%, cut in half after more than 20 years. Suwon, which once had an exceptionally high fiscal self-reliance rate compared to other local governments, has now fallen to the national average level (45%, 2023).

Among 31 cities and counties in Gyeonggi Province, Suwon is the 5th, but it is 15 percentage points lower than the city with the highest fiscal self-reliance rate (61.1%). The fiscal autonomy rate is 55.7%, ranking 24th within Gyeonggi Province. This is approximately 14 percentage points lower than the national average (69.6%) and the Gyeonggi Province average (69.1%).

Why has Suwon's economic vitality declined so much?

Suwon falls under the 'overpopulation-suppression zone' under the Metropolitan Regulation Plan. The overpopulation-suppression zone regulations have become shackles that make business activities difficult in Suwon. When businesses are established and operated in an overpopulation-suppression zone, they must pay taxes several times over, including registration license tax, local education tax, and corporate tax, so businesses leave Suwon.

In March, the Korean Chamber of Commerce and Industry and the Industrial Research Institute surveyed 159 companies in the Seoul metropolitan area (52 large enterprises, 52 mid-sized enterprises, and 55 small and medium enterprises) on their "intention to relocate or establish new or expand operations in provincial areas." 28.9% of responding companies answered that they "are considering relocating to non-metropolitan areas or investing in new/expanded operations within five years."

Companies that have relocated or are considering relocation to provincial areas responded that "tax incentives or tax breaks (37.7%)" had a significant impact on their decision. If we do not establish extraordinary measures, even the remaining businesses will continue to be lost.

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

We must attract businesses and investment to secure stable tax revenue, enabling us to create a livable city for citizens and revitalize Suwon's economy. This is why I placed 'Economic Special City' and business attraction as my number-one promise. Over the past year, I have worked hard to keep that promise.

■ Business and Investment Attraction Achievements

On my first day in office, I signed an investment agreement with SD Biosensor Co., Ltd., which had sales of 3 trillion won in 2021. In March of this year, I signed an investment agreement with Focus HNS, a domestic leading AI security control solution company. In April, I signed an investment agreement with Entegris, an American semiconductor comprehensive solutions company.

Currently, we are in negotiations with the 4th through 6th companies for investment attraction. While it is premature to discuss specific details, I will share good news with you soon. Over the past year, I have frequently met with business leaders and had frank discussions to understand business challenges and what businesses seek. I also met with university presidents to discuss ways to cooperate between industry and academia on business attraction, and in April, we signed a 'mutual growth cooperation agreement' with five local universities.

The presidents of the five universities promised, "We will promote business attraction in available land within the university and cooperate with business attraction projects that Suwon is pursuing."

As important as attracting new businesses is supporting existing businesses to keep them from leaving Suwon.

One of the necessary things when operating a business is financial support. To enable excellent startups and cutting-edge technology companies to receive investment, we plan to launch the 'Suwon Enterprise Saebit Fund' in the second half of the year. The Suwon Enterprise Saebit Fund will be established with a total scale of over 100 billion won or more, including 100 billion won in Suwon city investment (small and medium business promotion fund), 600 billion won in investment from the government-led Korea Development Bank, and 300 billion won from private capital. We plan to operate it with a mandatory investment commitment requiring that more than twice the city's investment be invested in Suwon enterprises, which will lead to the discovery of excellent Suwon businesses and activation of investment.

■ Civic Participation Platform 'Saebit Talk Talk'

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

A mobile civic participation platform 'Saebit Talk Talk' that allows all citizens to easily voice their opinions will operate in June. We will conduct a pilot operation for the month of June, and provide official service from July 1st. Through Saebit Talk Talk, citizens can propose policies and discuss with other citizens through comments. Good proposals will be converted into policies through discussion. We plan to hold discussion forums to determine whether proposal agendas will be converted into policies. Saebit Talk Talk will also conduct surveys for gathering citizen opinions.

Saebit Talk Talk will be a window for realizing direct democracy. For Saebit Talk Talk to play its role properly, active participation from citizens is necessary. I hope all citizens will install the app and actively voice their opinions. I will listen to citizens' opinions and operate city administration accordingly.

■ Suwon Saebit Care

The Suwon-style integrated care project 'Suwon Saebit Care,' in which communities serve as the center to discover struggling neighbors and care for them together with public institutions, will begin pilot operation in eight neighborhoods starting in July.

It consists of 'four life-centered services' including visit and household support, accompaniment support, psychological support, and temporary protection, as well as 'resident-proposed services' provided directly by community organizations based on resident suggestions.

Residents who know their neighborhoods and neighbors well, such as members of dong-level community welfare councils and neighborhood leaders, will be trained as 'Saebit caregivers' to jointly discover neighbors in need of care.

We will develop customized care services needed in each neighborhood and create a system to support neighbors in need. The Suwon Saebit Care project can be applied for through 'Saebit Talk Talk.'

■ Palmprint Gardens and Suwon Arboretum

Projects to create a 'Clean Living Special City' are also progressing smoothly.

The Palmprint Gardens being created throughout Suwon starting this year are open gardens created and maintained together by citizen initiative. Wherever there is a small space—village open lots, unused land, parks, or vacant areas—a Palmprint Garden can be created. Palmprint Gardens will enrich neighborhoods and change the paradigm of Korea's garden culture and park and green space policy.

Soon in Suwon, if you walk for just five minutes, you will encounter a beautiful garden. With your participation, Palmprint Gardens will become a model for Korea's urban green space policy and eventually become a policy that the entire world watches. The Ilwol Arboretum and Yeonghung Arboretum, which recently opened, are places citizens can comfortably visit anytime. We will nurture them as exemplary premium ecological arboretums.

Palmprint Gardens and Suwon Arboretum will also play a major role in achieving carbon neutrality.

■ Shortening Project Periods for Urban Redevelopment and Reconstruction

Currently, we are conducting a 'feasibility review study for the 2030 Urban Residential Environment Improvement Master Plan,' and we plan to exhibit and announce the revised master plan. After deliberation by the Urban Planning Committee, we plan to announce the revised master plan in December. By revising the master plan, we will shorten the project period for urban redevelopment and reconstruction, which previously took over 15 years, by 5 to 10 years.

Upon request from residents, we will shorten the timing of reconstruction safety inspections, and we will support project promotion costs in areas pursuing remediation projects.

For multi-unit housing more than 15 years after receiving an occupancy permit and remodeling housing union establishments, we will simplify administrative procedures to shorten project periods and will establish a 'remodeling public-private joint working council.' We will support safety inspection costs and provide consulting.

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

Have you felt the changes over the past year?

Over the past year, I have worked hard with public servants to lay the foundation for 'Suwon renewed, citizens brightened.' Based on this solid foundation, I will work with citizens to complete 'A City for All, One Suwon.'

Citizens' active participation can create a City for All, One Suwon.

All policies and projects in Suwon—the mobile civic participation platform 'Saebit Talk Talk,' the Suwon-style integrated care project 'Suwon Saebit Care,' 'Palmprint Gardens' being created throughout neighborhoods, 'Saebit 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 help us create a City for All, One Suwon. 'A city created by citizens,' Suwon will become a model for cities throughout the Republic of Korea and indeed throughout the world.

■ Citizen-Led Festivals

Many events will be held in Suwon this fall.

The Suwon Hwaseong Cultural Festival, which has established itself as Korea's representative festival, is celebrating its 60th anniversary, 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 thematic performances featuring citizen actors. The 10th-anniversary Eco-mobility Suwon Festival will also be citizen-led. About 10 years ago, when we announced the Eco-mobility Suwon 2013 Festival, some residents were concerned. I visited the site and continued to listen to residents' voices and persuaded them.

Haenggung-dong, which was a declining downtown area, regained vitality after Eco-mobility Suwon 2013 and has now become a nationally famous destination.

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

From October 24 to 27, the '27th World Korean Businessmen's Convention' will be held at the Suwon Convention Center. The World Korean Businessmen's Convention, which will be attended by approximately 1,000 Korean entrepreneurs from 67 countries around the world, is the largest event of the World Korean Trade Association. It will be an excellent opportunity to introduce Suwon and Suwon's businesses to the world. We will do our best to prepare for a flawless convention.

■ Metropolitan Regulation Plan Revision

I will 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 leaving for provincial areas due to the Amended Metropolitan Regulation Plan's overpopulation-suppression zone designation. Even the good businesses that remain in Suwon are preparing to relocate to local governments with fewer regulations. The Amended Metropolitan Regulation Plan is the biggest obstacle to business attraction. Cities designated as overpopulation-suppression zones are experiencing stagnated development due to excessive restrictions.

In the 1970s and 80s, developed countries like France, England, and Japan enacted laws similar to the Amended Metropolitan Regulation Plan, but as excessive regulations hindered national economic development and weakened national competitiveness, they underwent major revisions. Now it is time for our country to revisit the Amended Metropolitan Regulation Plan, enacted in 1982.

First, we must amend the excessive tax rates to reasonable levels.

We will lower the tax rates imposed on businesses in overpopulation-suppression zones and will voice our concerns together with other local governments in overpopulation-suppression zones so that the Amended Metropolitan Regulation Plan can be amended.

On June 19, a 'National Assembly forum for paradigm shift in overpopulation-suppression zones in the Seoul metropolitan area' hosted by Suwon-area members of the National Assembly will be held. It will be the first step in widely publicizing the problems of the Metropolitan Regulation Plan and the need for its revision.

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

The government announced that it will invest 300 trillion won to establish the world's largest cutting-edge system semiconductor cluster in Gyeonggi Province. A semiconductor mega-cluster will be completed together with the existing southern Gyeonggi semiconductor production complex. To export products produced in the semiconductor cluster to the entire world, an international airport is necessary. The construction of Gyeonggi International Airport is a task that can no longer be delayed. Gyeonggi International Airport will greatly help businesses based in Suwon enter the world market. I will request the Ministry of Land, Infrastructure and Transport to 'advance the timing of the preliminary feasibility review study,' and will continue to coordinate with the Gyeonggi Province government and the National Assembly.

■ Closing

One year ago, the great citizens of Suwon chose me, Lee Jae-jun, as Suwon's mayor, and I promised to "become a mayor who keeps promises," and I resolved to become a comforting 'neighbor' who is always by citizens' side.

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

Not forgetting my original heart, I will realize one by one the promises I have made to citizens.

Now Suwon will move toward becoming a city that guarantees safety, health, abundance, and sustainability in the lives of our citizens and resolves the sense of inequality that citizens feel. While there will be external difficulties, we can overcome them if citizens stand with us. I will create 'A City for All, One Suwon' that protects the lives of all citizens and resolves inequality.

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

Thank you.

June 1, 2023

Suwon Special City Mayor Lee Jae-jun