Revitalizing Local Economy, Accelerating Globalization Through International Exchange

Officials from the Suwon Economic and Trade Division are approaching their work this year with a markedly different attitude than previous years. They believe that as they steadily perform their duties, they will overcome economic crises one by one, and as a result, citizens' lives will become more abundant. Whenever the Economic and Trade Division moves, foundations for Korea's economy are built from small households to local economies, and the power of international exchange accumulates. Throughout this year, the Economic and Trade Division will move forward toward 'revitalizing local economy and globalization through international exchange.' We interviewed the key tasks for the year with Director Kim Hyung-bok of the Economic and Trade Division, called 'the flower of Suwon city administration,' along with Oh Seong-seok, Lee Hun-seong, Lee Yong-young, Yoon Geon-mo, and Park Heung-su. <Editor's Note>

● Kim Hyung-bok, Director of Economic and Trade Division: "Full Effort to Overcome Economic Crisis and Enhance Citizens' Welfare Through Economic Revitalization"

: Two months have already passed since we embarked on a new start with hopeful aspirations at the beginning of this year of the Rat. Korea is no exception amid the global economic slowdown, and it appears we have entered a full downturn phase beginning in the fourth quarter of last year.

According to economic research institute forecasts for this year, the economic growth rate is predicted to decline by approximately 3.4% compared to last year. The average operating rate of manufacturing has also fallen to the 70% range for the first time since the foreign exchange crisis. Inventory rates rose to 129.4% in December last year, and while the nationwide average for bill default rates in January was only 0.17%, the Suwon region stands at 0.39%.

The city is paying attention to the fact that the waves of economic hardship show little sign of subsiding, and we are doing our best to prepare countermeasures. We will make every effort to ensure that businesses and citizens going through difficult times can wisely overcome the economic crisis and pursue sustained development.

First, to expand sound, independent fiscal resources, we will search for tax sources among local taxes and non-tax revenues and increase collection rates while taking the lead in realizing equitable taxation. Additionally, we will implement transparent disclosure of accounting official education and various construction and service details to realize trustworthy administration.

We will make an all-out effort to revitalize the depressed traditional market through facility improvements and management modernization support, and will concentrate our capacity on management support for small and medium enterprises facing financial difficulties due to the financial crisis.

To resolve the shortage of factory sites for small and medium enterprises and attract eco-friendly advanced businesses, we will continue to promote privately-led apartment-style factory construction, taking the lead in job creation and attracting competitive enterprises.

We will maximize the international competitiveness of businesses by supporting our businesses' overseas market expansion using sister city networks and establishing systematic export marketing systems.

We will make every effort to improve the quality of life for farmers and enhance agricultural competitiveness through cultivating specialized farmers with excellent technology and management skills and promoting rural living improvement projects.

● Oh Seong-seok, Tax Policy Department Head: "Building Citizens' Trust Through Convenient and Transparent Tax Administration"

: The tasks for tax administration operations to complete Happy Suwon are first, the implementation of various tax payment convenience measures based on equitable taxation; second, securing and developing stable independent fiscal resources; and third, constructing a trustworthy tax administration organization by enhancing expertise in local tax affairs.

This year's city local tax collection target is 449.2 billion won in city taxes and 389.3 billion won in provincial taxes, for a total of 838.5 billion won.

First, let me explain the local taxes that will be notified to citizens with tax obligations in the city this year. In January, regular business license taxes were notified.

In June and December, regular automobile taxes will be notified. In July, there will be 50% of regular property taxes on residential properties and building taxes; in August, there will be individual flat-rate resident taxes.

In September, 50% of regular property taxes on residential properties and land taxes will be notified. I would like to note that acquisition and registration taxes, referred to as real estate transaction taxes, are notified upon payment each time a transaction occurs.

We will provide citizens with diverse tax payment convenience measures and conduct multi-faceted promotion of local tax payments to increase understanding, and will diversify tax payment methods so that taxpayers can pay using convenient methods.

As tax convenience measures, we will continuously implement '365 days virtual account payment service,' 'Wetax declaration and payment,' 'Internet giro payment,' 'automatic transfer and credit card payment methods,' and plan to provide electronic delivery service for local tax bills via email.

We will provide digital tax information services based on internet email services, and expect budget savings of approximately 100 million won annually through 5% electronic delivery.

To implement transparent and rational tax audits, we plan to simplify audit procedures by transitioning from document and visit-based tax audits to electronic tax audits through financial accounting audit programs, minimizing business burden.

As part of strong and systematic delinquent tax collection activities, we will enhance efficiency in delinquent tax collection by flexibly operating the 'Zero Tax Special Collection Mobile Team.'

● Lee Hun-seong, Accounting Department Head: "Full Preparations for Early Fiscal Execution for Economic Stimulus and Job Creation"

: The Accounting Department will work to achieve administration recognized for transparent and clean accounting operations while establishing clean and transparent accounting order befitting the local autonomy era.

We are promptly and accurately processing payment work for construction, services, and goods purchases resulting from various contracts, and we are providing friendly administrative services to citizens by notifying them of payment guidance through text message service for smooth fund turnover of contractors.

Regarding early fiscal execution for domestic demand stimulus and job creation, contract notices are made with emergency bidding with a 5-day announcement period, and payments are made within 3 days of invoicing.

When outsourcing contractors receive orders, subcontracting is preferentially targeted at businesses located in the Suwon area, and we recommend prioritizing the employment of on-site workers from within the region.

In addition, the implementation of accrual-basis double-entry accounting has increased the utilization value of financial management status and major indicators, enabling the provision of useful financial information to residents.

Through accurate public property management and site verification in accordance with public property management plans, we will ensure no inconvenience is caused to residents near national and public properties, and will allow holders and purchasers to use and purchase national and public lands through legitimate procedures.

The Paldal-gu Public Health Center, constructed in 1961 and recently causing significant inconvenience to citizens due to building deterioration, is scheduled for completion around the end of June this year with a scale of basement 1 floor, above-ground 3 floors (3,153 square meters).

Additionally, the entire city hall has been designated as a non-smoking area for the health of citizens and civil servants, and we will make utmost efforts in creating a clean air environment and maintaining a pleasant and accessible city hall through regular safety inspections and maintenance.

● Lee Yong-young, Local Economy Department Head: "Full Effort in Revitalizing Traditional Markets and Stabilizing Common People's Livelihoods"

:

The city's top priority this year is revitalizing a vibrant local economy. To achieve this, we will make every effort to stabilize common people's livelihoods through revitalizing traditional markets and shopping districts, restraining increases in local public charges, and stabilizing essential goods prices.

Furthermore, we will establish regional energy plans to lay the groundwork for efficient energy conservation while responding effectively to rapidly changing energy environments.

We plan to make utmost efforts in creating a healthy wellness culture through high-quality agricultural product production via eco-friendly agricultural material support and maintaining order in production and distribution stages of agricultural and livestock products.

The first priority initiative of the Local Economy Department this year is revitalizing traditional markets for common people's economic stability. To this end, we plan to invest 7.2 billion won in facility modernization projects for five markets including external wall maintenance of Yeokjeon Market.

To advance market management, we will implement the Motgol Market 'Bustling Street Project' with a budget of 1.4 billion won together with the Ministry of Culture, Sports and Tourism, and plan to implement specialty development projects for Youngdong Market and Paldal Gate Market with 2 billion won in collaboration with Gyeonggi Province and universities including Ajou and Kyonggi.

Second, we will implement local price stabilization measures. We will actively promote the common people's economic revitalization project by restraining increases in local public charges and implementing essential goods price comparison disclosure, and will continuously conduct intensive crackdowns on offenses that infringe on common people's livelihoods such as illegal debt collection by loan firms.

Third, we will implement efficient energy management measures. We will establish a five-year energy plan suited to regional characteristics and respond effectively to energy environment changes through low-carbon green growth and efficient energy conservation promotion.

Fourth, we will actively pursue agricultural material support projects. Recently, due to high oil prices, agricultural material prices have surged sharply, and consumption of agricultural and food products has declined, causing farmers to face a double burden.

To this end, the city will invest 2.4 billion won in business funds toward agricultural machinery, greenhouse film materials, standard packaging boxes, pest control, and organic fertilizer support, contributing to enhanced agricultural competitiveness and increased income.

● Yoon Geon-mo, Business Support Department Head: "Strengthening Small and Medium Enterprise Competitiveness and Supporting Management Stability"

: Our Suwon is a city of unlimited growth potential with global enterprises Samsung and SK as well as approximately 1,000 small and medium enterprises. However, small and medium enterprises are facing great difficulties due to recent financial crisis and weak domestic demand.

The city is supporting cultivation funds of 30 billion won for strengthening small and medium enterprise competitiveness and promoting local economic revitalization through management stability, with a limit of 500 million won per business.

We have secured 15 billion won in special guarantees for businesses with insufficient collateral, providing loan support up to 200 million won while the city supports 3% annual interest rates among bank loan rates.

In particular, to resolve funding shortages for small merchants, the economically underprivileged, we have prepared 2.4 billion won in special small merchant guarantees, providing loan support up to 20 million won per business.

To create a next-generation growth engine industrial site base, following Suwon Industrial Complex 1st Phase with 156 businesses currently located, the 2nd Phase (123,727 square meters) completed infrastructure development in 2008 and is currently under construction.

The 3rd Phase is being pursued with a goal of completion in 2012. Eleven apartment-style factories have been built, currently generating approximately 690 businesses and 9,000 jobs. We are currently constructing three additional facilities, and future effects are expected to include approximately 320 additional business attractions and 4,100 job creation opportunities.

To provide successful backup for these measures, the city is establishing a loan support system up to 400 billion won in construction funds, and is actively working to establish industrial site bases through exemptions of up to 400 billion won in acquisition and registration taxes as well as reductions in property and land reversion taxes.

We are operating the Venture Startup Support Center in Gyebal-gu Ingye-dong to foster excellent venture businesses, and are participating in collaborative projects including customized support projects in linkage with industry, academia, and research, support for startup incubation center construction costs, and support for university research centers.

At the same time, we are designating dedicated civil servants for businesses with 20 or more regular workers and providing One-stop administrative services through visiting them, listening to business grievances, and creating an environment conducive to business.

● Park Heung-su, International Commerce Department Head: "Developing Diverse Exchange and Cooperation Projects Among International Cities"

: Taking into account the national economic crisis such as exchange rate increases triggered by the financial crisis originating in the United States, the International Commerce Department will reduce unnecessary public overseas travel while making efforts to enhance the city's status and international image through international exchange projects and overseas market development by businesses in the city for local economic revitalization.

We will develop practical exchange and cooperation projects among international cities. Currently, our city maintains sister city relationships with 15 cities in 13 countries including Asahikawa, Japan, and is developing exchange and cooperation in various fields including administration, economy, and culture.

In 2009, we plan to invite Hangzhou, China in the first half of the year to establish friendly city relations and expand friendly city exchange targeting Western European and African regions where sister cities are not distributed, aiming to broaden the base of international exchange and increase private participation.

Regarding Suwon Village support projects in Cambodia, we will implement cultural education including Korean language and computer education, foster Phnom Kreom Suwon Elementary and Middle School, and pursue scholarship projects to support them.

For the 20th anniversary commemoration with Asahikawa, in accordance with agreements between the two cities, we plan to dispatch a delegation to participate in the summer festival held in Asahikawa from late July and operate Suwon Week with private exchange organizations as part of commemoration events.

For three cities marking their 10th anniversary of sister city relations, Toluca, Mexico is preparing for a visit commemoration event in April, and we plan to enhance friendly relations by installing memorial monuments in sister cities including Cruzinápoca and Yalova while seeking future cooperative exchange plans.

To strengthen global networks through international conferences, we will actively participate in international organizations including Citynet, a local government network, the UN International Association of Peace Messenger Cities (UN IAPMC) for world peace and regional common development, and the Gyeonggi-Shandong City Alliance comprising local government organizations of China's Shandong Province and Gyeonggi Province.

The city will compose a 'multicultural friendship delegation' representative of each country and a 'Foreign Residents' Association in Suwon,' and will operate foreign resident welfare centers and multicultural weekly programs, and through the 'Second Multicultural One Family Festival' will carry out support projects enabling early settlement despite different cultural backgrounds.

To strengthen export competitiveness through overseas marketing support, we will not only participate in famous expos suited to international market characteristics, but dispatch market exploration teams using sister cities as bases and support online export marketing through sister city websites.

We will designate Ingye-dong Maronie Road as the Sister City Street, and plan to establish it as an international destination by installing sister city markers or memorial monuments there and conducting commemorative tree planting, thereby promoting citizen understanding of sister cities and utilizing it as a place of rest.

Video in previous format cannot be played at this time.