At the National Assembly's Public Administration and Security Committee, Lee Dalhee, a proportional representative of the People Power Party, pointed out during the Ministry of the Interior and Safety’s audit on the 7th that “the budget for the village enterprise support and development project, which is being promoted as a countermeasure against local extinction, has been continuously reduced, and there is no budget for the designation of new village enterprises next year, causing increased confusion in the field.” She then urged for expanded support for the village enterprise development project.
According to materials submitted by the Ministry of the Interior and Safety to Lee's office, the village enterprise development project is designed so that the designation of village enterprises and subsidy support are integrated. If the subsidies are suspended, the designation of new village enterprises is also halted.
The Ministry of the Interior and Safety has not allocated a budget for the support of new village enterprises in 2025, following this year, raising concerns that the designation of village enterprises may be suspended for two consecutive years. As a result, projects that were being prepared on the premise of village enterprise designation are at risk of being derailed, and there are concerns about losses from investments made to enter the village enterprise sector.
In fact, cases of direct damage caused by the suspension of village enterprise designation by the Ministry of the Interior and Safety are increasingly coming to light.
The city of Gyeongju is establishing a village hotel as part of its urban regeneration project, which can be used by domestic travelers. However, for domestic travelers to use it, designation as a village enterprise by the Ministry of the Interior and Safety is essential. If new village enterprise designation is not granted by February next year, the qualification for applying the special accommodation provision for domestic travelers will be lost, and Gyeongju is continuously urging the Ministry to grant new village enterprise designations.
According to data submitted by the Ministry of Land, Infrastructure and Transport to Lee's office, there are currently 58 locations nationwide with plans to establish village hotels as part of urban regeneration activation plans.
Lee Dalhee of the People Power Party pointed out, “If village enterprise designation is not granted in 2025, there are expected to be as many as 147 enterprises nationwide that will suffer significant losses such as investment loss,” and criticized, “Ultimately, the damage caused by lack of coordination between ministries is being passed on directly to the public.”
Lee further emphasized, “Since the village enterprise development project is a policy aimed at attracting population inflow to local areas and revitalizing the regional economy, it is urgent for the Ministry of the Interior and Safety to not only resume new village enterprise designations but also actively consult with financial ministries to expand support for village enterprises.”
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