AUTONOMY FOR SPECIAL CITIES

AUTONOMY FOR SPECIAL CITIES

[Anchor Lead]
President Yoon Suk Yeol has announced the creation of a special law to enhance the powers of metropolitan cities during the twenty-third policy discussion forum on people's livelihoods. This initiative includes the transfer of provincial governors' authority related to development, such as high-rise building construction permits, to these special cities.

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Currently, there are four special cities with a population of over one million. They are Yongin, Suwon, Goyang and Changwon. Though these cities have autonomous rights in administration and finance in levels similar to their larger metropolitan counterparts, with a legal status of municipality, they still need approval from provincial governors in many areas. For instance, permits to build high-rise buildings or plans to renovate multi-unit housing require such approval. President Yoon Suk Yeol has vowed to enact a special law to transfer a considerable portion of development-related authority to these cities.

[Soundbite]
Yoon Suk Yeol (President): Granting more authority to special cities is the right thing to do because they know local conditions best. They are already de facto metropolitan powers.

Yoon also said that fostering a mega semiconductor cluster in Yongin will increase the population to 1.5 million, and made other pledges too, such as resolving local issues concerning housing and transportation. He also promised to expedite a private sector project of opening the so-called 'chips expressway' as well as the swift construction of a housing site in Yongin's Idong-eup township. Yoon said a Meister high school specializing in semiconductors, the first of its kind in the capital region, will also be established.

[Soundbite]
Yoon Suk Yeol (President): It's most important to build infrastructure that directly relates to people's lives. Living standards in education and culture must also improve.

The latest policy forum held in Yongin was the first to be themed on a specific city rather than a specific policy area. The presidential office plans to continue these public forums catering to local needs even after next month's general election.

IMBALANCE IN ECONOMIC GROWTH

[Anchor Lead]
Since 2015, there has been a significant widening in the economic growth rate gap between the capital and non-capital regions, according to a study by the Bank of Korea. This phenomenon is attributed to the difference in key industries. The semiconductor industry has taken root in the capital region, while industries facing fierce competition with China have established themselves in non-capital regions. We have the details.

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In its latest Regional Economic Report, the Bank of Korea has surveyed economic growth rates of each region in the nation before and after 2015. Seoul recorded an economic growth rate of 2.5% between 2015 and 2022. Gyeonggi-do and Chungcheongbuk-do provinces each posted 4.5%. The rates are similar or slightly lower than those posted between 2001 and 2014. In contrast, the economic growth rates of non-capital regions were found to have plummeted during the same period. Ulsan, the nation's manufacturing hub, recorded economic growth of minus 0.6% between 2015 and 2022. That's significantly worse than the 2.8% rate posted between 2001 and 2014. Chungcheongnam-do, Gyeongsangbuk-do and Gyeongsangnam-do provinces also saw their economic growth rates fall around the year 2015. Researchers say the gap between the capital and non-capital regions stems from the gap in major industries. The major industries of the non-capital regions are automotive, chemical and steel. The report says the global competitiveness of these industries has weakened due to the cutthroat competition with China, while their output has declined. In contrast, advanced electronics and semiconductor industries, primarily based in the capital region, continued to grow. The regional gap has also widened in terms of private consumption. The average propensity to consume in provincial areas has plunged compared to major urban areas since 2015. The report attributes the trend to an influx of young people to large cities and the capital area since 2015 as well as a widening gap in the numbers of wholesale and retail stores and service firms. The BOK researchers are calling for diverse policies to expand the growth potential of non-capital regions.

RETAIL PRODUCE PRICES DOWN

[Anchor Lead]
Once fetching over 5,000 won each, that's around 3.7 dollars each, apple prices have seen a slight decrease. The retail prices of most agricultural products have also dipped, thanks to the government's support through price stabilization funds. The government anticipates that prices will stabilize further in the second half of the year.

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Four apples chosen by customers cost less than 10,000 won or about 7.5 U.S. dollars. Pre-packaged bag of apples are even cheaper. A shopper carefully makes her selection
comparing prices.

[Soundbite]
Park Yong-weol (Seoul resident): I don't think it has dropped that much. But they say it's cheaper, so I am buying two bags without hesitation.

Since the government began injecting a price stabilization fund worth 150 billion won or over 112 million dollars, retail prices for apples have dropped 16 percent, compared to a month earlier. Those of tomatoes and pears have also fallen 19 percent and six percent, respectively. Prices of scallions and spinach have gone down by over 30 percent on-month. Although wholesale prices remain high, it appears that retail prices began to fall. Deputy Prime Minister for Economy Choi Sang-mok said that the government is devising measures to enhance the competitiveness of the fruit farming industry in preparation against climate change. All in the meanwhile, addressing problems with the distribution structure. He added that the government is also reviewing keeping apples in reserves. The deputy prime minister forecasts that the inflation rate will drop to the low-to- mid two percent range in the second half of this year once prices of agricultural products and food stabilize.

[Soundbite]
Choi Sang-mok (Deputy Prime Minister for Economy): We will inject price stabilization fund based on market situations and price changes without a time frame and spending limit.

The National Agricultural Cooperative Federation is holding an event offering discounts of up to 70 percent on key farming and livestock products and processed foods until April 12th at its 2,200 supermarket locations nationwide.

TRADE SURPLUS IN COPYRIGHTS

[Anchor Lead]
South Korea has posted a trade surplus in copyrights for the 11th straight year. Citing Bank of Korea data, the culture ministry said the country's trade balance in copyrights recorded a surplus of over 2.2 billion dollars last year, up 27% from the previous year. It marks a trade surplus for the 11th consecutive year since 2013. The ministry noted that increased diversity in K-contents such as games, music, dramas and webtoons as well as copyright protection that supports the sector has contributed to raising global competitiveness.

"JAPAN PROPOSES SUMMIT WITH NK"

[Anchor Lead]
Kim Yo-jong, Deputy Director of the Workers' Party and sister of North Korean Chairman Kim Jong-un, has disclosed that Prime Minister Fumio Kishida of Japan has proposed a summit. This unprecedented public revelation of back-channel discussions between leaders raises questions about North Korea's intentions and the feasibility of an actual summit.

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Last month, Japanese Prime Minister Fumio Kishida mentioned the need to hold a summit with his North Korean counterpart. In response, Kim Yo-jong, the sister of North Korean leader Kim Jong-un, said Kishida might visit Pyongyang one day. About a month has passed since then and Kim Yo-jong said on Monday that Japan proposed to hold a summit. State media quoted her as saying that through another channel, Kishida conveyed his intention to meet with Kim Jong-un at an early date. But she attached conditions, saying it doesn't mean that he can meet the North Korean leadership, just because he wants to do so. She essentially demanded what she called a "political decision," asking not to interfere with weapon development and to stop mentioning the issue of Japanese abductees in North Korea. In particular, she said there is nothing more to resolve and investigate regarding the abduction issue. When asked about a potential summit, Kishida reiterated the importance of a summit with Pyongyang but added that nothing has been decided for now.

[Soundbite]
Fumio Kishida (Japanese Prime Minister): It's important to hold a summit with N. Korea in order to resolve the abduction issue and other matters.

However, Japan prioritizes resolving the abduction issue as a key agenda for the summit, highlighting a stark difference in stance between the two countries. Given these circumstances, observers say the summit will unlikely be held soon. The fact that the North first disclosed the back-channel communications also suggests that discussions are not progressing well.

[Soundbite]
Hong Min (Korea Institute for Nat’l Unification): This move, while diplomatically inappropriate, might aim to slightly disrupt the strong security ties between South Korea, the U.S., and Japan.

Seoul's foreign ministry says it is closely communicating with Tokyo on North Korea issues. It added that South Korea, the U.S., and Japan are closely coordinating to bring the regime back to the path of denuclearization.

CHANGES FOR NK DEFECTOR CENTER

[Anchor Lead]
To support North Korean defectors' integration into South Korean society, there exists "Hana Centers," a regional adaptation facility. Yet, their civilian outsourcing has led to criticisms, particularly regarding personnel management. The government is now proposing a shift to direct management for all centers, a strategy facing skepticism over its practicality.

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This North Korean woman arrived in South Korea seven years ago. A counselor visits her weekly for psychological counseling. The Hana Center helps North Korean refugees acclimate to the local community, helping with practical needs like job and housing but also, emotional support. As the counselor belongs to a center directly run by a government agency, long-term professional support is made possible.

[Soundbite]
Kim l-jeong (Gangwon Bukbu Hana Center): There isn't a finish line for defector support. Once they settle here, we monitor them until they get stable psychologically and financially.

There are a total of 25 Hana centers across the nation. But just three are directly run by the Korea Hana Foundation, an agency under the unification ministry. The 22 other centers are operated by civilian agencies due to budget issues. However, there are problems, like limits in personnel management and the varying service quality. So the government has launched a task force to convert all Hana centers into facilities under direct government management. The government has decided to revise related law to enable the Korea Hana Foundation to run the Hana centers directly. It plans to issue an advance notice of the revision in the first half of this year at the earliest with an aim to put it into effect next year. But opponents of the plan say that it would be wasteful to convert all Hana centers into government-run facilities, when new arrivals of North Korean defectors have considerably dropped. Instead, they believe it'd be more efficient to utilize civilian personnel familiar with the situation. The Hana Foundation plans to devise detailed measures after collecting opinions from the existing civilian operators and related government agencies.

GOYANG TO JOIN CLIMATE CARD

[Anchor Lead]
Goyang city in Gyeonggido Province is joining the Seoul Climate Card project, which offers passengers unlimited use of public transportation including subway and bus rides for a monthly cost of around 46 U.S. dollars. The Seoul Metropolitan Government and the city of Goyang on Monday signed an agreement to this effect. Under the arrangement, the Climate Card will newly include ten stations on subway line 3 from Daehwa to Samsong, ten stations on the Gyeongui-Jungang line from Tanhyeon to Korea Aerospace University station.

DOMESTIC UREA PRODUCTION

[Anchor Lead]
Urea water, crucial for diesel vehicle emission reduction devices like those in large trucks, has been a concern due to halted exports from China since 2021, causing widespread anxiety regarding its shortage. In response, the government is revisiting domestic urea production for the first time in 13 years.

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[Soundbite] [싱크자막]
KBS News 5 (Nov. 5, 2021)

[Soundbite] [싱크자막]
KBS News 9 (Nov. 9, 2021)

In 2021, when China imposed restrictions on the export of urea for industrial purposes, urea shortages occurred nationwide. Drivers rushed to look for urea, and even emergency supply adjustment measures were enforced.

[Soundbite]
Freight truck driver (March 7 (VOICE MODIFIED)): It cost as much as 100,000 won (USD 75) to fill one tank. My business is losing money. Urea is used in machinery, fertilizer and diesel cars.

Last year, China temporarily suspended urea exports again, sending the urea market into chaos. The main reason is Korea's heavy reliance on Chinese urea, which currently surpasses 90%. To solve the repeated shortages of urea, the government has laid out a plan to resume domestic production.

[Soundbite]
Ahn Duk-geun (Industry minister): We'll discuss extreme measures to build a domestic production base for items that are repeatedly in short supply or whose imports are hard to replace.

The problem is the high domestic production cost of urea more than 30% higher than in China. In other words, the more urea producers sell, the higher their losses. The only solution is funding from the government. To produce the annual amount of urea consumed domestically, which stands at 90,000 tons, billions of won, or millions of dollars, in government funds will be needed. The government is reportedly deliberating partial funding for urea producers' manufacturing facilities and operation costs.