President Lee: Balanced Development is Key to National Survival, Plans Large-Scale Regulatory Zones

President Lee Jae-myung has underscored the critical importance of balanced regional development, framing it not as a matter of charity but as an essential condition for the nation's very survival. Speaking at the first plenary meeting of the Regulatory Rationalization Committee, the President articulated a vision for revitalizing regional economies through the establishment of extensive regulatory special zones.

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Balanced regional development is not a matter of charity or consideration, but an essential condition for national survival.

"The biggest problem in South Korea is the concentration in the Seoul metropolitan area," President Lee stated, highlighting how this imbalance diminishes the nation's overall competitiveness by hindering efficient resource allocation. The proposed regulatory special zones are designed to be experimental grounds where specific regions can receive concentrated support in terms of deregulation, tax incentives, and financial aid, thereby stimulating industrial and local growth.

Furthermore, the President called for a paradigm shift towards a 'negative regulation' system, particularly within advanced technology industries. This approach, which permits all activities except those explicitly prohibited, is seen as vital for boosting the nation's declining growth potential. President Lee argued that as industries mature, government bureaucracy often struggles to keep pace with private sector innovation, leading to a loss of competitiveness during the lengthy processes of regulatory change and approval.

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The biggest problem in South Korea is the concentration in the Seoul metropolitan area. It is reducing the overall competitiveness of South Korea due to inefficient resource allocation.

This initiative reflects a broader strategy to decentralize economic power and foster more equitable growth across the country. By creating these special zones and embracing more flexible regulatory frameworks, the administration aims to unlock new avenues for investment and innovation outside the capital region. The focus on 'negative regulation' in high-tech sectors signals a commitment to adapting to the rapidly evolving global technological landscape and ensuring that South Korea remains at the forefront of innovation.

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We need to make the growth potential, which continues to fall, trend upwards. To do this, we must either eliminate unnecessary and inefficient regulations or standardize regulations to global standards. In the field of advanced technology industries, it is necessary to transition to negative regulations.

From a national perspective, this policy is not just about economic development; it's about national resilience and long-term sustainability. Addressing the chronic issue of 수도권 집중 (metropolitan concentration) is seen as fundamental to strengthening the nation's foundation and ensuring that all regions can contribute to and benefit from its prosperity. The success of these regulatory special zones will be a key indicator of the administration's ability to tackle deep-seated structural challenges.

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When industries develop, the public sector cannot keep up with the private sector. If someone on the ground thinks, 'I need to do this,' they lose competitiveness in the process of changing regulations and obtaining permits.