LEAD) Lee seeks to broaden support for revised Sejong City plan

(ATTN: UPDATES throughout with president's comments)
SEOUL, Jan. 12 (Yonhap) -- President Lee Myung-bak said Tuesday that he will
refrain from providing excessive incentives to firms and schools moving into a
new city in central South Korea, attempting to quell criticism over his decision
to scrap a national project to develop the region into an administrative center.

Lee said that provinces and cities in other parts of the country will not suffer
"reverse discrimination" as a result of his government's offer of sweeping
incentives to investors in Sejong City, currently being built about 150
kilometers south of Seoul. The administration is pushing to turn the region into
a "science and business" hub.
"Other regions will not be affected by the Sejong City issue," he said in a
luncheon meeting with provincial and metropolitan heads from around the country.
The meeting, designed to drum up public support for the revised Sejong project,
was attended by Seoul Mayor Oh Se-hoon and heads of 14 other local governments,
with the exception of Park Joon-young, governor of South Jeolla Province, who was
scheduled to go on trial for alleged election law violations, according to pool
reports.
Under the new blueprint unveiled Monday, private firms, colleges and research
institutes moving into Sejong City, located in the South Chungcheong Province,
will be granted cheap land, tax benefits, and other subsidies.
Lee's decision triggered a wave of controversy as residents in the central
province, along with opposition parties and some ruling party members, staunchly
oppose revisions to the original administrative project, which was initiated by
the preceding administration for the purpose of promoting balanced national
growth.
"(Only) New things should be installed in a new place," Lee said in response to
worries that Sejong City could siphon away companies and colleges in other areas
and deal a serious blow to regional development.
"The Sejong City project will be implemented on a limited basis. The central
government will make an effort so that your cities and provinces will not suffer
damage," Lee said.
He also lamented the heated political debate that has grown around the issue.
On the economic front, meanwhile, Lee reaffirmed confidence that the South Korean
economy will record 5-percent growth this year barring any unforeseen
emergencies.
"Still, the crisis is not over," Lee pointed out, saying it is still premature to
roll back emergency measures put in place by his government over the past year to
stimulate the economy.
lcd@yna.co.kr
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