Local Governments Can Promote Projects More Freely
Injecting Vitality into Gyeonggi and Contributing to Balanced Development
[Asia Economy Reporter Moon Jiwon] Regulations will be eased to allow local governments to carry out regional projects more freely.
The Ministry of Land, Infrastructure and Transport announced on the 25th that it has prepared the Enforcement Decree of the 'Regional Development Support Act,' which mainly relaxes some of the 'major change requirements' in regional development plans to 'minor changes.'
When there is a 'major change' in a regional development plan, it must go through complex procedures such as consultations with related agencies and the Ministry of Land, Infrastructure and Transport, review by the National Land Policy Committee, approval by the Minister of Land, Infrastructure and Transport, and public notification. However, 'minor changes' only require preparation of the change plan, prior consultation with the Ministry of Land, Infrastructure and Transport, and public notification, making the process relatively simple.
Until now, if the project cost of a regional development project was 3 billion KRW or more, it was considered a 'major change.' However, going forward, if the increase or decrease in project cost is within 10% or even more than 10% but has been consulted with financial authorities, it will be treated as a 'minor change.'
In the case of road projects, changes to the start and end points were all considered 'major changes,' but if the road route and road width are within 30% and have been consulted with related agencies, they can be processed under the 'minor change' procedure.
Also, if a preliminary feasibility evaluation has been conducted regarding the appropriateness of the project scale under the Regional Development Support Act, it will be treated as a 'minor matter.'
Due to this regulatory easing, more than 50% of applications for 'major changes' in regional development plans have been changed to 'minor matters.'
Han Jeonghee, Director of the Regional Policy Division at the Ministry of Land, Infrastructure and Transport, said, "With this revision of the Enforcement Decree of the Regional Development Support Act, regional development projects led by local communities will be promoted swiftly," and added, "It is expected to inject new vitality into the regional economy through prompt fiscal execution and further contribute significantly to balanced national development."
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