Saving Sejong City by Killing Gyeonggi Province?

As news spreads that Samsung Electronics' biosimilar and LED divisions are being finalized by the government to move into Sejong City, Suwon and Gyeonggi Province are bracing themselves.

In particular, Governor Kim Moon-soo of Gyeonggi Province is openly opposing the government's plan to supply land at cheap prices to large corporations and universities relocating to Sejong City.

Recently, the government finalized a revised plan for Sejong City in which raw land in the form of undeveloped plots will be supplied to large corporations and universities at 360,000 to 400,000 won per 3.3㎡ (1 pyeong). This supply price is significantly lower compared to the average price of industrial land in the province, which stands at around 2 million won per 3.3㎡. This has heightened the possibility that large or small and medium-sized enterprises that the province and Suwon have been attracting could relocate to Sejong City.

Furthermore, if Samsung Electronics, headquartered in Suwon, concentrates investment in or relocates some businesses in the biosimilar and LED divisions known to be moving to Sejong City, the regional economy is expected to be significantly contracted.

Upon hearing this news, Governor Kim Moon-soo of Gyeonggi Province expressed his dissatisfaction openly. On the 7th, during a visit to a labor market in Seongnam, Governor Kim stated, "Compared to Sejong City, Gyeonggi Province receives consideration that is less than one-hundredth," and "Even if we're neglected, so be it. Take everything. Let's see what happens then."

Governor Kim also pointed out, "(Sejong City is doing this) because of votes during elections," and was reported to have said, "I will show (Gyeonggi Province's) position with votes later."

On the same day, at the Gyeonggi Province Citizens Association New Year gathering held at a convention center in Seoul, Governor Kim said, "This morning I asked the Minister of Strategy and Finance, 'Can you only see Sejong City and not Gyeonggi Province?'" and "I told them Gyeonggi Province will show its power," according to attendees.

Governor Kim's remarks are analyzed as expressing dissatisfaction on the grounds that the government is showing consideration toward Sejong City while maintaining a lukewarm attitude toward the deregulation of the Seoul metropolitan area, which the province has been strongly demanding, effectively subjecting Gyeonggi to reverse discrimination.

The same sentiment is shared by Suwon. Suwon City Council Chairman Hong Ki-heon recently stated during an interview, "Samsung Electronics is Suwon's representative corporate brand," and expressed serious concerns, saying, "If some business divisions of Samsung Electronics relocate to Sejong City, there is a possibility that subcontractors will also move together, greatly shaking the regional economy." Chairman Hong also stated, "We will consult with the relevant standing committee to prepare countermeasures."

A small and medium-sized business official in Suwon also argued, "Does the government intend to save Sejong City by killing Gyeonggi Province and Suwon? This is clear reverse discrimination. In recent years, many companies have relocated to other regions, weakening Suwon's self-reliant economic base, and the phenomenon of industrial hollowing-out will be further intensified."