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Gwangju secures 5.7-trillion-won budget for next year; its largest-ever.

Name : adminDate : 2020-01-02 11:0816
| National Assembly deliberations award 2.537 trillion won of government expenditure for 2020
| A 327.7-billion-won increase (14.8%) on last year, and 112.9 billion won more than provisional allocation
| Funds will promote major projects including artificial intelligence, commemorative project for the 40th anniversary of May 18, and construction of urban railroads
| Government and National Assembly budget supports Gwangju ‘future food’ project


Allocations for major areas
Welfare 2.2727 trillion won
Culture and Tourism 346.4 billion won
Urban Transportation 865.6 billion won
Urban Regeneration New Deal Project 44.2 billion won
Safety Environment 521.6 billion won
May 18 6.6 billion won
Industrial Economy 295.1 billion won

The National Assembly allocated 2.537 trillion won for 43 state-funded projects in Gwangju in 2020, representing a 112.9-billion-won increase from the provisional 2.425-trillion-won allocation.
The amount is a 327.7-billion-won (14.8%) increase from last year’s 2.21 trillion won, and includes 196.8 billion won for 94 new business projects, and 2.3411 trillion won for 192 ongoing projects.

Since breaking the 2-trillion-won mark in state funds last year, the Gwangju government has reached a new record this year after all-out efforts to secure national funds. In particular, next year’s allocation represents a significant achievement, securing 196.8 billion won for 94 projects, a 113-billion-won (134.8%) increase with 70 additional projects, compared to the previous year’s 83.8 billion won for 24 projects.

This resulted from the city government and National Assembly’s response to major projects carefully prepared by Gwangju city in consideration of the government’s fiscal investment directions, such as the development of the artificial intelligence industry and creation of jobs.

The budget establishes a stable financial base to ensure that local projects can be delivered without a hitch.
The most significant achievements of the National Assembly’s 2020 budget expansion are as follows:

First, a budget increase of 20 billion won lays the groundwork for Gwangju to become the nation’s leading ‘AI Hub City’, through the early establishment of infrastructure for the AI-focused industrial convergence complex.
Second, an additional 40.1 billion won has been earmarked for a commemorative project for the 40th anniversary of the May 18 Democratic Uprising, to re-examine the global historical value of the May 18 Democratic spirit and publicize the civic spirit to combat injustice.

Third, the allocation for construction of Gwangju’s second subway line increased by 22 billion won, to facilitate a smooth construction phase and early opening.

Fourth, the fourth industrial project related to jobs has been recognized through a stable foundation for future state funding, including ▲ the establishment of Start-up Business Support Center (1 billion won), ▲ construction of an innovative education system to train AI working-level human resources (1.28 billion won), ▲ building a platform to foster an artificial intelligence-based healthcare startup (2.45 billion won), ▲ supporting the enhancement of corporate capacity for a win-win relationship between labor and management (1 billion won), ▲ development of AI silver care technology for the socially vulnerable (1 billion won).

□ Major new projects whose budget increased during the National Assembly deliberation
An extra 1 billion won was awarded to support the design service costs for the establishment of the Start-up Business Support Center. The 45-billion-won project aims to help start-ups and support facilities through the establishment of an integrated start-up infrastructure in one place and the creation of more private jobs through fostering local industries.

An additional 12.8 billion won of national funds was awarded to the construction of an innovative education system to train AI working-level human resources in various industries to advance the local economy.
The project to support the enhancement of corporate capacity for a win-win relationship between labor and management was awarded a further 1 billion won. The 10.4-billion-won project aims to support businesses through the establishment of a network of component companies and enhance their capabilities in order to strengthen the sustainability of the Gwangju-type job automobile factory and the local parts industry.

The 20-billion-won construction of Sajik Park Theater received a further 440 million won for the design service costs of an outdoor concert hall. The project is to construct a cultural exchange center to showcase musical content from the Asia Culture Center, one of the five major cultural areas, to expand the local music culture.

Among other major new projects, a total of 25.3 billion won for 22 projects was allocated through the deliberation process, including 2.45 billion won to build a platform to foster an AI healthcare startup, 1 billion won to develop AI silver care technology for the socially vulnerable, 700 million won to vitalize transmission of Asian Community culture, and 2.5 billion won to improve Gwangju’s image as a place of international culture and art.

□ Projects increased from the 2020 government budget plan
The 406.1-billion-won project to create an artificial intelligence-centered convergence complex was exempted from the preliminary feasibility study at the end of January this year. The project aims to contribute to industrial growth by building an artificial intelligence industry ecosystem and fostering capacity in artificial intelligence, a key pillar of the fourth industrial revolution. The government had only awarded 42.6 billion won of the requested 120.5 billion won, but the National Assembly increased this by an additional 20 billion won.

The Gwangju Metropolitan Rapid Transit Line No. 2 is a large social overhead capital (SOC) project with a total budget of 2.176.1 trillion won, to construction a second subway line in the city linking with Line 1, to establish a circular public transportation network. The government initially awarded 61 billion of the 89 billion won requested, but this increased by 22 billion won following National Assembly deliberations.

The Gwangju-Gangjin highway construction project requires 1,424.7 billion won in state funds to expand the north-south highway in the Honam region and contribute to balanced regional development. The government provisionally awarded 351.9 billion won of the 48.6 billion won requested (including the road construction expenses), but the National Assembly increased this by a further 23 billion won.

The 12.6-billion-won project to commemorate the 40th anniversary of May 18 will provide the opportunity to shed new light on the global historical value of the May 18 Democratic spirit and promote its civic spirit in fighting injustice. The government had awarded 2.5 billion won of the 9.9 billion won asked for, but the National Assembly increased this by 4.01 billion won
Twenty-one projects saw increases totaling 87.6 billion won, including 1 billion won to build an eco-friendly auto parts certification center, 600 million won to build infrastructure for the commercialization of high-value optical semiconductors based on MEMS, 1.575 billion won for technical support for commercializing the LiDAR convergence industry, and 1.6 billion won for the establishment of a comprehensive support center for the energy industrial convergence complex.

□ Major Budget Assurance Projects by Sector
AI New Industry and Growth Potential Industries: 42.3 billion won for 17 projects, including

- the creation of an AI-centered industrial convergence complex (20 billion won); the establishment of a start-up business growth support center (1 billion won)
- the establishment of an innovative education system to train AI working personnel (1.28 billion won)
- the establishment of a platform to foster AI healthcare startups (2.45 billion won)
- support for the enhancement of corporate capacity for a win-win relationship between labor and management (1 billion won)
- the development of AI silver care technology for the socially vulnerable (1 billion won)
- the establishment of an eco-friendly auto parts certification center (1 billion won)
- construction of infrastructure for commercialization of high-value MEMS-based optical semiconductors (600 million won)
- technical support to commercialize the LiDAR convergence industry (1.575 billion won)
- the establishment of a Comprehensive Support Center for Energy Industry Convergence Complex (1.6 billion won)
- a recycling project for the Hanam Industrial complex (2 billion won).

Culture and May 18 sectors as part of the Hub City of Asian Culture: 15.3 billion won for 13 projects, including
- the construction of Sajik Park Theater (440 million won)
- vitalizing transmission of Asian Community culture (700 million won)
- improving Gwangju’s image as the host city of international culture and art (2.5 billion won)
- commemorative project for the 40th anniversary of May 18 (4.01 billion won)
- oral-based interactive content production and artificial intelligence dialogue platform construction (500 million won).

Infrastructure expansion projects including SOC facilities: 45.2 billion won for three projects, including
- the construction of Gwangju second subway line (22 billion won)
- the construction of the Gwangju-Gangjin highway (23 billion won)
- the expansion of Honam Expressway between Donggwangju and Gwangsan IC (160 million won).

In addition, 10.1 billion won was allocated following the National Assembly’s review of 10 other projects in the expansion of safety facilities and environmental ecology, including reinvestigation of DB improvement in underground facilities (500 million won) and becoming a leading city for water circulation (1 billion won).

Gwangju Mayor Lee Yong-sup said: “Gwangju is expected to gain momentum in revitalizing the local economy and promoting pending projects in the region by securing the government budget for next year with substantial projects including the creation of an AI centered industrial convergence complex, the commemorative project for the 40th anniversary of May 18, and the construction of Gwangju second subway line. We thank the political circles, including government officials and local lawmakers, for their support in securing the budget, and appreciate the efforts of public officials in our city.”