[Local Election Interview] Joo Hoyoung: "If We Lower Corporate Taxes Further from Seoul, Companies Will Come"

Deputy Speaker Joo Hoyoung Declares Candidacy for Daegu Mayor
Presents "Regionally Differentiated Taxation" as Solution to Revitalize the Regional Economy
For the Integrated Daegu?North Gyeongsang Mayoral Post, "Balanced Leadership" Rather Than One-Sided Rule Is Key
"I Will Stop Kim Boo-kyum, the Democratic Party’s Leading Contender"

"Does bringing in a single company through the mayor's personal skills fundamentally revive the regional economy? The farther a region is from the Seoul metropolitan area, the more boldly we must cut taxes so that companies will voluntarily move to the provinces."

Joo Hoyoung, Deputy Speaker of the National Assembly (Daegu Suseong-gu A), who has declared his candidacy for Daegu mayor in the 9th nationwide local elections to be held on June 3, stated this in an interview with The Asia Business Daily on the 20th. A six-term lawmaker, he has served as floor leader of the People Power Party and as Deputy Speaker of the National Assembly.

Joo Hoyoung, Deputy Speaker of the National Assembly (Daegu Suseong-gu Gap), who declared his candidacy for Daegu mayor, was interviewed by The Asia Business Daily on the 20th. Photo by Joo Hoyoung's Office

Deputy Speaker Joo said, "On a tilted playing field like now, where all labor and capital are sucked only into Seoul, the provinces are structurally bound to be at a disadvantage," adding, "We must change the rules of the game themselves so that we can fundamentally flip the board."

The solution he proposed is a new set of game rules called "regionally differentiated taxation." He argued that, as a result of regulatory restrictions on the Seoul metropolitan area, the Chungcheong region is already benefiting from corporate relocations, and coastal cities such as Ulsan and Busan, which have export bases, are also securing industrial advantages. In contrast, he said that Daegu and North Gyeongsang Province, located between these areas, are suffering relative marginalization without any clear policy incentives. According to the Korean Statistical Information Service (KOSIS), as of 2024, the real gross regional domestic product (GRDP) of South Chungcheong Province stands at 135 trillion won, more than double that of Daegu (66 trillion won).

Deputy Speaker Joo insisted, "We now need to draw another regulatory line centered on Chupungnyeong." He explained, "Since companies are concentrated in the Seoul metropolitan area, even if we raise corporate taxes on companies in the metropolitan area and cut taxes for companies located south of Chupungnyeong, the total tax revenue collected by the government can still be kept the same."

On the integration of Daegu and North Gyeongsang Province, he called for speeding up the process under the principle of "integration first, then candidate selection." He said the tasks to be resolved before candidate selection include "very sensitive pending issues, such as where to locate the integrated government office, how to manage personnel exchanges, and how to merge and restructure public corporations." Regarding the recent disagreements among subregions over administrative integration, he said, "Integration is an issue where the interests of each side are sharply different, so no matter how much you discuss it, you cannot reach a conclusion. It is right to set a deadline and move toward it."

Asked why, as a six-term member of the National Assembly, he is now seeking to become the head of a local government, he emphasized, "If I become the integrated mayor, I will take on a heavy responsibility that affects the lives of 5 million residents of the city and province. At this point, we need a heavyweight figure who can sit across from the central government as an equal and negotiate."

Politically, he also described himself as the only candidate capable of checking former Prime Minister Kim Boo-kyum of the Democratic Party, who is considered a strong contender. Deputy Speaker Joo said, "Among the current People Power Party candidates, I am the only one who has actually defeated former Prime Minister Kim in an election."

Joo Hoyoung, Deputy Speaker of the National Assembly (Daegu Suseong-gu A), who announced his run for Daegu mayor, was interviewed by The Asia Business Daily on the 20th. Office of Joo Hoyoung.

The following is a Q&A with Deputy Speaker Joo.

-Is a regionally differentiated tax policy realistic?

▲ There are three ways to get companies to move to the provinces: land prices must be low, labor must be easy to secure, or taxes must be low. At this point, the only tool we can practically use is taxes. As far as I know, President Lee Jaemyung is also positive about a plan to increase government support the farther you get from the Seoul metropolitan area. This is a logic I have consistently advocated since before the current government began pursuing related policies.

-There are regional disagreements over administrative integration.

▲ Administrative integration is an issue that the People Power Party originally raised first. It was stuck in a deadlock, but fortunately the ruling party opened the door by saying, "Let’s do it," which allowed us to come in. So this time, we must go in no matter what. Integration is not a problem that can be solved just by preparing for it. Because the interests of each side are sharply different, you cannot reach a conclusion no matter how much you discuss it. It is right to set a deadline and move forward.

-Is it really possible to receive the 20 trillion won in integration support funds over four years?

▲ Considering the next general and presidential elections, I do not think the Democratic Party would have put forward an entirely empty pledge. However, I am worried they might count previously allocated budget together and still call the total 20 trillion won.

-Young people keep leaving Daegu.

▲ About 20,000 students graduate each year from universities in the Daegu area, and the problem is that there are not enough quality jobs to satisfy them. However, even when large corporations are attracted these days, their labor intensity is low, so there are limits to how much they can create large-scale employment. This is not only a problem for Daegu; it is a global issue. Even taking these structural constraints into account, the options available to the region are clear. We must boldly reform the tax system and innovate regulations to strengthen incentives for companies, while at the same time lowering housing costs to create a foundation for young people to settle down.

-What is your plan for Daegu’s transition to an AI-based industrial structure?

▲ More important than attracting large corporations is transforming our core industries. Daegu has traditionally had strengths in the auto parts industry. The robotics industry is a convergence of AI and the parts industry. Therefore, I believe it will not be difficult for our region to transform itself into a hub for the robot parts industry. I think it is right to focus on future mobility industries such as autonomous driving and drones.

-Describe the Daegu you envision in four years in one sentence.

▲ A city that has halted its decline and returned to a growth trajectory. I will not make sweet promises like "I will make everyone much better off." I will stop the 30-year-long downward trend of the regional economy. If we do not solve this issue first, all other policies will be useless.

-Public opinion in Daegu regarding the party’s internal strife before and after former President Yoon Sukyeol’s sentencing?

▲ Public sentiment in Daegu is that people dislike the Lee Jaemyung administration, but they also resent the People Power Party for failing to keep it properly in check and instead fighting among themselves. As for the impact of former President Yoon’s sentence on public opinion, it is still unclear. Both the powers of the President of the Republic of Korea and this ruling are within the boundaries of the law, so who would be unable to accept the verdict? In fact, Daegu is the city that suffered the greatest damage under martial law. It is regrettable that, because the conservative administration was not maintained, all the things that figures from Daegu could have done have come to nothing.

-What is the difference between Joo Hoyoung the politician and Joo Hoyoung the administrator?

▲ I do not think the work of politicians and administrators is fundamentally different. In broad terms, both must listen to and coordinate differing opinions, mediate so there are no side effects or aftereffects, and approach issues in newer ways. The difference is that politics must operate in a more creative realm, while administration must be carried out within the broader framework of the law. As an administrator, Joo Hoyoung will play the role of breaking through blocked paths through "regulatory innovation."

-What is your own principle that enabled you to become a six-term lawmaker?

▲ Whenever the number of terms increases, people naturally say, "You have really done a lot." That means public scrutiny becomes more stringent and standards become higher. The higher your number of terms, the more you must consistently deliver achievements and results that surpass your past performance. In the end, the principle is simple: to serve voters with your utmost effort.