Assemblyman Heo Sungmu Hosts Forum on the Special Act for Regional Public Banks to Promote Local Economic Revitalization

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As the importance of revitalizing the local economy continues to grow and the need for financial alternatives to overcome the crisis of regional extinction becomes increasingly urgent, Assemblyman Heo Sungmu (Democratic Party of Korea, Changwon Seongsan District) held the "Citizen Forum on the Enactment of the Special Act on Regional Public Banks and Alternatives" at the main conference hall of the Democratic Party of Korea's South Gyeongsang Provincial Office on January 29.

This forum was organized to explore legislative measures for "regional public banks" that would address the structural limitation of local funds flowing into the Seoul metropolitan area, and to seek ways for local governments to independently manage funds, thereby promoting a virtuous cycle in the regional economy.

Photo of the forum.

The forum particularly focused on establishing a financial foundation for small and medium-sized enterprises in the Changwon National Industrial Complex to invest in future technologies and respond to the energy transition. It also addressed the need to discuss an inclusive financial support system for small business owners suffering from high interest rates and inflation.

The event was chaired by Song Wongun, Professor at Gyeongsang National University. The keynote presentation was delivered by Seo Ikjin, Co-Representative of the Currency Democracy Solidarity. The forum was moderated by Kim Kyungyoung, Co-Representative of the Social Innovation and Energy Transition Forum. Panelists included Park Jonghyun, Professor at Gyeongsang National University; Lee Sangheon, Secretary General of the National Network for Regional Circular Economy; and lawyer Kim Youngjun, who shared on-the-ground perspectives.

Seo Ikjin, who delivered the keynote, emphasized the necessity of regional public banks by citing the 100-year success story of the Bank of North Dakota in the United States. He stated, "Public banks owned by local governments can utilize credit creation techniques to strengthen the fiscal capacity of local governments and contribute to fostering regionally specialized industries and building a regional circular economy."

Chairperson Song Wongun commented, "Currently, local governments face clear limitations, such as having to rely on the central government for funding or issuing local bonds. Regional public banks will open up new possibilities for local governments to independently secure the resources they need."

Panelist Park Jonghyun argued, "The current financial system entrenches the 'straw effect,' where regional wealth is siphoned off to the Seoul metropolitan area. Regional public banks are the path to realizing financial justice by using residents' assets for the benefit of the region. The enactment of a special law is necessary to provide a stable foundation for local governments to operate public finance."

Lee Sangheon, Secretary General, added, "The credit creation function of regional public banks is an essential authority for restoring monetary sovereignty. Circulating wealth generated in the region within the region will be a key mechanism for overcoming the crisis of regional extinction."

Lawyer Kim Youngjun suggested regarding the legislative direction, "The law should provide an attractive institutional framework, but the actual establishment and operation should allow local governments the autonomy to adapt to local circumstances."

Assemblyman Heo Sungmu stressed, "Many local governments are currently facing fiscal crises, yet the wealth generated in the region is being funneled to the Seoul metropolitan area through commercial banks. Unlike private finance, which pursues private interests, regional public banks operated for the public good will serve as a powerful engine to overcome the crisis of regional extinction."

He further stated, "Based on the opinions of experts and citizens expressed at this forum, I will accelerate the enactment of the 'Special Act on Regional Public Banks' to establish a regional public economic system."

Meanwhile, the forum was hosted by Assemblyman Heo Sungmu and co-organized by the Gyeongnam Democratic Research Institute, the Social Science Research Institute at Gyeongsang National University, the Social Innovation and Energy Transition Forum, and the Currency Democracy Solidarity. The event drew significant attention, with more than 40 participants including relevant experts, officials from South Gyeongsang Province and Changwon City, and local citizens.

This content was produced with the assistance of AI translation services.