Sunhee Lee, a member of the Gyeongbuk Provincial Council (People Power Party, Cheongdo), pointed out during her five-minute free speech at the 359th regular session on December 19 that "the contract structure of Gyeongbuk Province is hindering the growth of local businesses and young people," and called for practical institutional reforms.
Lee stated, "It is time to critically examine whether the contract structure of Gyeongbuk Province truly offers fair opportunities for local businesses and young people," directly linking the issue of contract structure to the sustainability of the local economy and the outflow of the youth population.
According to Lee, an analysis of 100 service contracts (excluding private contracts) recently commissioned by Gyeongbuk Province and its affiliated agencies showed that more than half were awarded to companies based in Seoul and the metropolitan area, while only six contracts went to companies based in Gyeongbuk.
She particularly pointed out that "large companies from outside the region win contracts, but in the actual course of business, the work is often subcontracted to local companies," adding, "In this process, local businesses perform the substantive work but are unable to record official achievements, placing them in a vicious cycle where they are excluded from future competitions."
She also criticized the current structure, noting that even for projects such as event management, promotion and marketing, and education and consulting-which do not require high technical expertise-local businesses and youth-led companies are denied opportunities due to performance-based evaluation criteria.
Furthermore, Lee emphasized, "Large companies with nationwide performance records continue to have an advantage, while youth-led companies find it difficult even to obtain opportunities for growth," highlighting that this structure is directly linked to the outflow of young people from the region.
As of 2024, Gyeongbuk ranks among the highest regions for net outflow of young people, following Gyeongnam, and according to a survey by the National Data Agency, the primary reason for non-metropolitan youth moving to the metropolitan area is 'employment.'
Lee argued, "As business opportunities for local companies decrease, young people have fewer reasons to remain in the region," adding, "This is not simply an administrative issue regarding contracts, but a structural problem that will determine the future of Gyeongbuk."
She continued, "This is not a request for preferential treatment for local companies, but a call to provide at least a minimal foundation for growth until they can compete on a fair playing field," suggesting directions for improvement such as rational adjustment of performance criteria, expanded evaluation of local understanding and contribution, and creating more opportunities for youth-led companies to participate.
Sunhee Lee stressed, "Improving the contract structure is a key policy tool to strengthen the local industrial base and help talent settle in the region," and added, "Supporting local businesses and young people is not a step backward for administration, but a proactive investment in nurturing Gyeongbuk's talent and enterprises."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
