Success Know-how of Bundang and Gwanggyo New Cities to be Shared with Other Local Governments

[Suwon Ilbo=Reporter Kim Gab-dong] Going forward, Gyeonggi Housing and Urban Development Corporation (GH) will be able to engage in various collaborative and linked projects if it reaches an agreement with local governments in other regions such as Gangwon and Chungcheong provinces.

A path has been opened to share the experience of Gyeonggi Housing and Urban Development Corporation, which successfully developed Bundang Techno Valley and Gwanggyo New City, with other local governments. Additionally, public enterprises from other regions such as Seoul Housing and Urban Development Corporation (SH Corporation) will need to reach an agreement with Gyeonggi Province if they wish to participate in new development projects in the Gyeonggi region.

According to Gyeonggi Province on the 14th, a partial amendment to the Local Public Enterprise Act containing these provisions was passed in the National Assembly plenary session on the 13th. Gyeonggi Province immediately expressed its welcome for this amendment to the Local Public Enterprise Act.

The current Local Public Enterprise Act does not contain separate provisions regarding the participation of local public enterprises in projects outside their jurisdiction.

This amendment was made to resolve controversy that arose when Seoul Housing and Urban Development Corporation (SH) requested government approval for its participation in the third-phase new city project being developed in the Gyeonggi region. The Ministry of the Interior and Safety announced in legislation in July of last year an amendment to the Local Public Enterprise Act to enable project implementation in other jurisdictions when mutual consultation among local governments is conducted to promote collaborative and linked projects among local governments.

However, Gyeonggi Province and the Gyeonggi Provincial Council maintained the position that rather than mutual 'consultation,' only local governments where both the city/province and city/county/district councils have 'agreed' should be able to implement projects.

The Urban Environment Committee of the Gyeonggi Provincial Council (Chairperson Baek Hyun-jong) passed a motion in September of last year opposing the amendment, stating that concerns exist regarding damage to the foundational purpose of local public enterprises and infringement of local autonomy, as they could incentivize local public enterprises—which should prioritize public value for resident welfare—to prioritize regions capable of generating profits. Previously in July of last year, it also passed a resolution condemning Seoul Housing and Urban Development Corporation (SH)'s participation in the third-phase new city project.

Gyeonggi Province held expert consultation meetings multiple times and conducted meetings with city and municipal public corporations while maintaining cooperation with the National Assembly and the Ministry of the Interior and Safety.

With this amendment to the public enterprise law, projects in other jurisdictions can only be implemented through mutual agreement between local governments where both the city/province and city/county/district councils have agreed, thereby preventing indiscriminate business expansion by other local government corporations for profit generation and clearly resolving concerns about exclusion of metropolitan local governments.

A Gyeonggi Province official stated, "This amendment to the law is the result of Gyeonggi Province's continuous efforts to clarify the scope of consultation among local governments and pursue mutual prosperity and joint development with the local community. Gyeonggi Province plans to continue seeking a path of mutual benefit alongside its residents and work continuously for the sound development of local public enterprises."