Paju City to Revitalize Local Economy with Local Funds... Promoting Establishment of 'Paju-Style Local Public Bank'

Paju City in Gyeonggi Province announced on the 16th that it held the "Local Public Bank Forum for the Realization of a Basic Society" at the National Assembly Members' Office Building on the 15th, where it discussed the necessity and direction for promoting local public banks as an alternative for regional finance.

Paju City held the "Local Public Bank Forum for the Realization of a Basic Society" on the 15th at the National Assembly Members' Office Building. Provided by Paju City

The forum was co-hosted by Paju City and National Assembly members Park Jeonghyun, Song Jaebong, and Heo Seongmu, with Paju Mayor Kim Kyoungil serving as the moderator. Yang Junho, Professor of Economics at Incheon National University, delivered a keynote presentation titled "The Necessity and Significance of Local Public Banks: Exploring a Paju-Style Local Public Bank Model." The designated discussion that followed featured Lee Sangheon, Secretary General of the National Network for Regional Circulation Economy, Seo Ikjin, Co-Representative of the Currency Democracy Solidarity, and Song Jihyun, Professor of Global Climate Economics at Inje University, who shared a range of perspectives.

This forum was organized in response to the widening gap between regions, aiming to explore a sustainable regional economic foundation where local funds circulate within the region, rather than flowing out, and serve as a public infrastructure. In his presentation, Professor Yang Junho cited the example of the Bank of North Dakota (BND) in the United States, explaining, "A local public bank can offer a practical solution by preventing the outflow of regional capital and providing stable support to financially marginalized groups, thereby sustaining the regional economy." He further emphasized the need to establish a regionally tailored model suitable for Korea's circumstances.

During the subsequent discussion, experts agreed that a local public bank should go beyond being a simple welfare-oriented financial institution, instead serving as a 'public financial platform' that enables regions to build their own economic self-reliance and restore local communities. They also highlighted key issues that must be considered in the institutional design process, such as linking with local government treasury functions, establishing citizen-participatory cooperation systems, and implementing phased execution strategies.

Paju Mayor Kim Kyoungil stated, "Based on the diverse opinions discussed today, we will continue to review and develop a realistic model tailored to Paju City."

Meanwhile, in November, Paju City launched a project to establish a "Paju-Style Local Public Bank Promotion Model" and is currently devising a model that emphasizes both public interest and sustainability. Building on this forum, the city plans to expand social discussions on local public banks and to further refine the direction for establishment through collaboration with relevant experts and civil society.