Three State-Owned Corporations to Relocate to Provinces in 2010

Three public institutions, the Korea National Housing Corporation, the Korea Land Corporation, and the Korea Highway Corporation will be relocated in 2010, two years earlier than originally planned.

In addition, 25 state-of-the-art sectors among foreign companies will be allowed to build or expand their plants in industrial districts like Pyeongtaek and Paju in Gyeonggi Province this year.

As transportation card operation systems will be unified nationwide by 2007, one will be able to use transportation cards purchased in Seoul in Busan or Jeju.

Kang Dong-seok, minister of Construction and Transportation, briefed President Roh on the “plan on major projects in 2005” on March 7 at Cheong Wa Dae.

The report says that for balanced national development, the Ministry of Constriction and Transportation decided to push ahead with plans like the construction of the administrative city, the relation of public institutions to provinces, the designation of the corporate city as a pilot project, and the deregulation of Seoul Metropolitan area.

To that end, the ministry will decide which region will be the administrative city in May, and start to purchase land in December.

Public institutions in the Seoul metropolitan area to be relocated to provinces, and the regions to host those institutions will be finalized next month. The other public intuitions are scheduled to move by 2012, as scheduled.

An official at the ministry said, “Some 190 institutions were planned to be moved to the provinces. But the number decreased to some 180, as 6 ministries out of 18 decided to remain in Seoul.”

As part of an effort to prevent a hollowing-out of the Seoul metropolitan area, the ministry announced it would allow the setup or expansion of 25 state-of-the-art sectors managed by foreign companies, including computer equipment and software, broadcasting equipment, optical equipment, automobile parts and aircraft companies, in a “Growth Management Zone” in the Seoul metropolitan area, including Pyeongtaek, Paju and Hwaseong, within the year.

It would be allowed to build or expand plants in a total of 61 sectors, including the above-mentioned 25 sectors in Pyeongtaek where a U.S. army base will be relocated.

Furthermore, the ministry is planning to allow the relocation of four-year colleges within a “Congestion Restraining Zone,” including Seoul, Incheon and Uijeongbu in Gyeonggi Province, by the end of 2007.

Jae-Seong Hwang Wan-Bae Lee jsonhng@donga.com roryrery@donga.com