"Local Heads Should Work Like SME CEOs"
Government Cuts Gift Certificate Budget, Opposes Residents' Demands
"Will Continue to Support Redevelopment and Reconstruction with a Sense of Urgency"
Seung-ro Lee, Mayor of Seongbuk District, emphasized in an interview with Asia Economy on the 9th that "local love gift certificates have a significant impact on regional economies with weak industrial bases," and stated, "Support from the government and Seoul City should be increased." (Photo by Seongbuk District Office)
Lee Seung-ro, the mayor of Seongbuk-gu, Seoul, considers Seongbuk-gu his second hometown. After leaving his birthplace, he settled in Seokgwan-dong in his early twenties and has lived in the same neighborhood for 40 years this year. He started as a laborer at Noryangjin Fish Market and once tasted success in the food distribution business. Later, he entered local politics.
He is called a "field-oriented mayor" who knows Seongbuk-gu well, perhaps because of this background. When heavy snow falls late at night, he goes outside at 2 or 3 a.m. to check if snow removal is being properly carried out. When a fire broke out at an outdoor parking lot of a multi-family house in Jeongneung-dong last Sunday, he turned his car around while out dining with his son and daughter-in-law. The mayor said, "A basic local government head must work on the ground like a CEO of a small or medium-sized enterprise," adding, "Especially, the mayor must take the lead in protecting the property rights and safety of local residents."
On the afternoon of the 9th, when the interview was conducted in the mayor's office, a heavy snow warning was issued across Seoul. As the snowfall intensified, Mayor Lee pondered whether to hold the New Year's gathering scheduled for the next day. "If it snows heavily, traveling can be dangerous, and there are many local safety issues to attend to," he said. "I need to go out on site and make a judgment." The local government New Year's gathering is a large event attended by over 1,000 people.
During the interview, Mayor Lee emphasized residents' safety and local economic issues. He stated that revitalizing the local economy through local love gift certificates and accelerating redevelopment and reconstruction projects are directly related to our livelihoods. Below is a Q&A with Mayor Lee Seung-ro.
- Does the local love gift certificate have such a significant impact on the local economy?
▲ In 2020, when COVID-19 infections were severe, the commercial district around Jangwi-dong was devastated. Due to a cluster infection originating from Sarang Jeil Church, the area near the church became a no-go zone, and for several months, customers stopped visiting nearby stores, including Jangwi Traditional Market. As stores began to close one after another, we came up with the idea of issuing highly discounted gift certificates usable only in Jangwi-dong, and the effect exceeded expectations.
Seongbuk-gu has no notable industries besides the developed fashion sewing industry and many small business owners. I believe local love gift certificates are the best for revitalizing the local economy.
- Then why not issue more of them?
▲ The demand for gift certificates from small business owners and residents is explosive, but national and city subsidies have been continuously reduced since the first year of issuance. Last year, the government budget was completely cut, and city budget support decreased from 6% to 4%. As the district's financial burden increased, the discount rate had to be reduced from 10% to 7%.
The government calls this cash welfare and cuts the budget, but what kind of cash welfare is this? The reduction in the local love gift certificate budget is a prime example of government policies running counter to residents' needs.
After consulting with other district mayors, regardless of ideology or faction, all 25 district offices in Seoul shared the same view. We proposed twice to Seoul Mayor Oh Se-hoon during district mayor meetings. Through the District Mayor Council, we continue to demand Seoul City to increase the discount rate and the compensation fund.
- In what ways is it so effective?
▲ Because it can only be used locally, unlike metropolitan gift certificates where demand concentrates in specific places, the benefits are evenly distributed among local merchants. When I meet merchants, they say, "Issuing Seongbuk Love Gift Certificates noticeably increases sales," and residents say, "With private education costs bending our backs, it's good to reduce tuition fees with gift certificates," and they earnestly ask for more issuance in the future.
Last year, Seongbuk-gu issued 61 billion KRW worth every two months. The district government issued 42 billion KRW, ranking third among Seoul's autonomous districts. Each issuance sells out quickly, and the usage rate within eight months is about 100%, showing good turnover. Despite budget difficulties, we plan to issue a similar amount this year.
Seung-ro Lee, Mayor of Seongbuk District (left in the photo), is laughing heartily while talking with merchants of the local traditional market. (Photo by Seongbuk District Office)
- There are 124 redevelopment and reconstruction maintenance projects underway, the most nationwide.
▲ Small local governments with limited finances find it difficult to provide the infrastructure residents want with their budgets. Because compensation costs are high, even investing 50 billion or 100 billion KRW in urban regeneration projects does not make a visible difference. There are limits. Expanding infrastructure through redevelopment and reconstruction donations in kind brings noticeable urban changes and clear residential improvement effects.
Seongbuk-gu has many old buildings and areas with poor residential environments, so maintenance projects are absolutely necessary. Residents are also strongly motivated to push these projects forward. In that regard, Seongbuk-gu is actively supporting them.
- Is that why you created the Rapid Promotion Team?
▲ Yes. We established the Rapid Promotion Team, a dedicated team for accelerating redevelopment and reconstruction, and have been operating it for a year and a half. The deputy mayor serves as the head, the director of the Urban Management Bureau as deputy head, and all departments involved in urban development roadmaps participate, not just the maintenance project department. We systematically manage public redevelopment and rapid integrated planning projects and operate a mediation committee with maintenance project experts to resolve conflicts among stakeholders.
The Sinwol-gok 1 district (also known as Miaritexas Village), which was designated as a maintenance zone and had been drifting for over 10 years, is now actively supported by the district office using all discretionary powers within legal limits, and relocation is currently underway. We deployed two public lawyers who dedicated a year to problem-solving and conflict mediation. Despite ups and downs, significant changes are also occurring in Jangwi-dong. We have prepared mid- to long-term roadmaps for the next 5 to 10 years.
- What are other key focus areas this year?
▲ We plan to focus on the voices of youth and reflect their demands more in policies. We also plan to evolve and expand communication channels by establishing a metaverse mayor's office. With the opening of the Seongbuk Modern Literature Museum and the Creative Theater Support Center this year, Seongbuk-gu's cultural infrastructure will become richer.
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