Daegu City Opens Era of 4 Trillion Won Investment Projects for the First Time in History

Increase of 537.7 Billion KRW Compared to This Year

Daegu City Hall.

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Daegu City secured a budget of 4.0133 trillion KRW in the government budget review by the National Assembly in 2022, marking the first time in history that the national subsidy budget exceeded 4 trillion KRW.

This amount is 537.7 billion KRW more than this year's 3.4756 trillion KRW, and when including the welfare sector national subsidy of 2.1857 trillion KRW and the general grant tax of 1.1162 trillion KRW, the total budget approaches 7 trillion KRW.

The city evaluated this as a result of exemplary handling of the COVID-19 crisis since last year, while steadily establishing strategies for discovering future growth engines and developing investment projects.

It is expected to lay the foundation for stable promotion of core projects that will become the city’s future growth drivers and to revitalize the contracted citizen life and local economy.

The city secured an additional 37.5 billion KRW compared to the government proposal for the informatization project budget for the construction of the National Information Resources Service Daegu Center, which was the biggest issue for the local ICT industry, and guarantees the participation of local companies in the project.

By reflecting the budget for one additional multi-site regional innovation project based on local government-university cooperation, Daegu and Gyeongbuk plan to revive the spark of regional industrial development through ultra-wide area cooperation.

It also secured service fees for the core project to diversify water sources, the Nakdong River Basin Safe Water Supply System Construction Project, preparing measures to resolve citizens’ drinking water concerns.

The budget also includes the Korean War Frontline Cultural Content Discovery and Preservation Project, re-examining the frontline culture that was active around Daegu during the Korean War as part of Korea’s important cultural history.

New projects related to industrial structure reform and the 5+1 future industries, as well as metaverse-related projects, which the city is focusing on, are also significantly reflected in the government budget and will be promoted.

The 5+1 future new growth projects include 2 billion KRW for the establishment of a demonstration platform to foster digital therapeutic devices, 25.4 billion KRW for the operation of the national water industry cluster, 6 billion KRW for the construction of a fluid performance testing center for the water industry, 9.7 billion KRW for autonomous driving technology development innovation projects, and 9.6 billion KRW for the establishment of a demonstration platform for future car digital convergence industry.

Budgets for the Daegu Mobile Collaborative Robot Regulatory Free Zone of 7.9 billion KRW, intelligent robot distribution and expansion of 68.2 billion KRW, ultra-wide area metaverse hub construction of 2 billion KRW, and smart city innovation growth engine project R&D of 6.3 billion KRW were also included.

In the field of regional industrial innovation, budgets include 4 billion KRW for digital convergence manufacturing process innovation and precision machinery processing industry promotion, 1 billion KRW for supporting commercialization of eco-friendly bioplastics, 2 billion KRW for advanced demonstration base for commercialization of advanced nano-material components, and 19 billion KRW for regeneration projects targeting the 3rd industrial complex and Seodaegu industrial complex.

In the area of revitalizing the livelihood economy, 33 billion KRW was allocated for Daegu Happiness Pay issuance, 1.5 billion KRW for fostering traditional market revitalization projects, 20.4 billion KRW for locally led youth job projects, and 4.1 billion KRW for youth monthly rent support. In the field of metropolitan transportation network construction, budgets include 43.8 billion KRW for Daegu Industrial Line railway construction, 41.9 billion KRW for Daegu metropolitan railway construction, 20 billion KRW for Dasa~Waegwan metropolitan road construction, and 50 billion KRW for the double-track electrification of the urban railway Line 1 from Ansim to Hayang.

In the urban environment and citizen life creation sector, projects include 9.8 billion KRW for the Nakdong River Basin Safe Water Supply System Construction, 1.7 billion KRW for urban railway fine dust reduction, 10.3 billion KRW for small-scale air pollution prevention facility support, and 38 billion KRW for reducing emissions from diesel vehicles.

The city also allocated budgets for the construction of the National Information Resources Service Daegu Center, local government-university cooperation-based regional innovation projects, and electric vehicle, two-wheeler, and hydrogen vehicle distribution projects.

Mayor Kwon Young-jin said, “The core project areas of Daegu City, such as the 5+1 new industries, upgrading of regional key industries, and future city spatial innovation, are reflected in next year’s government budget, which will give momentum to a new leap forward. I hope this news will be a source of strength for local companies and citizens who have endured difficult times.”