"‘Textile City’ Daegu's Textile Budget Decreases by 55% in 3 Years... Councilor Park Jongpil Urges Daegu City to Take Active Support Measures"

Daegu City Council member Park Jong-pil (People Power Party, proportional representation) submitted a written administrative inquiry on the 21st, addressing the recent momentum for the revival of the textile industry, identifying various pressing issues faced by the textile sector, and urging Daegu City to provide active support.

Daegu was once renowned as a "textile city" due to its textile industry, one of South Korea's top 15 export items. However, the industry is currently in decline due to domestic market stagnation and the relocation of production bases overseas. It is facing worsening conditions amid price competition with products from developing countries including China, supply chain disruptions, and an energy crisis.

Daegu City Council Member Park Jong-pil

Nevertheless, Daegu's textile industry still accounts for about 12% of the number of businesses and employees nationwide, and when including Gyeongbuk Province, it exceeds 20%, remaining an important regional industry.

Council member Park Jong-pil called on Daegu to actively seek solutions to the various issues in the textile industry and to expand investment in the development of advanced materials and sustainable eco-friendly materials.

Park stated, “The budget related to textiles in Daegu has been continuously decreasing, with this year's budget reduced by 55% compared to 2021. Eventually, many projects were terminated due to conflicts between Daegu City and the textile industry, which gives an idea of how the city views the textile industry. To revive the textile industry, the city must first restore the drastically reduced budget.” The textile-related budget of Daegu City was 32.5 billion KRW in 2021 and 14.5 billion KRW in 2024 based on the main budget.

Additionally, Park urged Daegu City to actively participate in government-led projects such as improving textile fashion technology and establishing a low-carbon base for textile material processing to secure national funding.

Park said, “Since last year, domestic leading yarn manufacturers have ceased production, exacerbating difficulties in the textile industry. If replaced with imported yarn, it is impossible to prove domestic origin, which inevitably impacts exports.” He also urged Daegu City to actively consider, at the city level, proposals from the industry to change the FTA origin criteria from ‘Yarn Forward’ to ‘Fabric Forward’ and to introduce a Daegu-origin fabric certification system to enhance the export competitiveness of the local textile industry.

Finally, Park called on Daegu City to undertake bold structural reforms through active communication with the textile industry, related research institutions, and organizations, and to increase investment in research and development projects such as advanced materials and eco-friendly textile materials. He said, “The textile industry is Daegu’s history, culture, and future. I ask Daegu City for active support to once again elevate the status of Daegu as the textile city.”