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Investment in Innovation Cities

Posted August. 28, 2007 03:14,   


The government has finalized development plans for 10 innovation cities where 175 public agencies currently in the Seoul and Metropolitan area will be relocated. Accordingly, the building of four innovation cities, namely Daegu, Ulsan, Gyeongbuk and Jeju, is expected to begin this year.

The Ministry of Construction and Transportation said that it deliberated and voted on the innovation city development plans for Haeundae-Yeongdo in Busan and Jeonju-Wanju in Jeonbuk Province at an innovation city committee held yesterday.

The ministry also voted for the implementation plans for four innovation cities for which preparations are progressing more rapidly than other cities: Daegu, Ulsan, Gyeongbuk and Jeju.

The development blueprint for 10 innovation cities has been completed and construction on four innovation cities will start by the end of this year.

The government intends to encourage the building of the remaining six innovation cities within this year.

Meanwhile, some say that the government is extending expedient financial support to the innovation city project in order to produce tangible results.

The administration has decided to spend 30 billion won in incentives on Jeju, the site of the first planned innovation city, and 10 billion won on the second local government, which starts an innovation city project.

The Construction Ministry explained, “We are giving already-allocated funds for local SOC buildings in advance.”

Still, some criticize that additional advance investment in the project only increases the burden on taxpayers when the compensation level for innovation cities alone has reached 4.3 trillion won.