Busan Mayor Park Hyung-jun on the 17th criticized the government’s decision to establish the Southeast Regional Investment Corporation in relation to the president’s campaign pledge, calling it “an explicit breach of a presidential promise.”
The establishment of the Southeast Regional Investment Corporation (Bank) was a campaign pledge of President Lee Jae-myung. Its goal is to create a policy financial institution to supply funds for restoring industrial competitiveness in the Busan, Ulsan, and Gyeongnam regions.
In a post on his social networking service, SNS, the mayor stated, “The Lee Jae-myung administration’s decision to scrap the relocation of the Korea Development Bank to Busan and instead establish an investment corporation—not an investment bank—is an act of disregarding the aspirations of Busan citizens. It is a decision that evades fundamental solutions for regional development with empty promises.”
He added, “The relocation of the Korea Development Bank to Busan was rooted in former President Roh Moo-hyun’s policy of relocating public institutions for regional balanced development, a long-cherished wish of Busan. It was a policy pursued by the Democratic Party and would have been realized long ago if the party’s leadership had not turned a blind eye for political reasons.”
Mayor Park noted, “President Lee pledged the establishment of a Southeast Investment Bank instead of relocating the Korea Development Bank during his candidacy, but yesterday at the Cabinet meeting, he decided to establish the Southeast Regional Investment Corporation. This is a clear breach of a presidential pledge and an act of ignoring Busan citizens.”
He then refuted the reasons why the investment corporation format should not be adopted.
Mayor Park explained, “The Southeast Investment Corporation is incomparable to the Korea Development Bank in terms of funding scale and flexibility. As it focuses on indirect funding through equity, bonds, and fund formation, policy funding support is constrained, and there are clear limitations in attracting private capital.”
He also cited overlapping functions with existing financial institutions, high risks of defaults due to management and supervision centered on the competent ministry, and insufficient accessibility for regional businesses due to profit-oriented investments as grounds for opposition.
Mayor Park stated, “I do not understand why the government insists on a model with a high likelihood of failure, despite the past failure of the Korea Policy Finance Corporation. Even though I emphasized that if the Korea Development Bank’s relocation is not feasible, an investment bank capable of playing a comparable role should be established, the government’s decision is incomprehensible.”
He questioned, “Does the president’s statement that ‘national balanced development is not a choice but a destiny’ align with scrapping the Korea Development Bank’s relocation and establishing an investment corporation instead of an investment bank? The investment corporation is merely a supplementary measure that can be used alongside the bank’s relocation,” and reiterated the demand for the bank’s relocation.
Earlier, President Lee Jae-myung, at the Cabinet meeting held at the Government Complex Sejong on the 16th, listened to an explanation from Minister of Oceans and Fisheries Chun Jae-soo about establishing the Southeast Regional Investment Corporation instead of the Southeast Investment Bank and responded, “Then, proceed accordingly.”
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