Respected residents and public officials of Gyeonggi Province! In the new year, I sincerely wish that you realize all your plans and wishes, and have happiness and joy with your family. I also hope that this will be a rewarding year with Korea enjoying growing prosperity and Gyeonggi leading a second launch of the national economy as it makes great strides in gaining a stronger presence in the world. Ⅰ. Strengthened Competitiveness: The Survival Strategy for the 21st Century People of Gyeonggi Province! Korea's economy is now at critical crossroads. On the international level, foreign pressure on Korea to open its agricultural and services markets has been mounting. Korea has faced many difficulties in those vulnerable areas as a result. Prompted by global regionalism, countries with common economic interest have been decisive and quick to form FTAs to serve their best interests. Korea has remained almost the only major economy that has failed to do so. The rapid rise of China has certainly benefited Korea, as we could tap into that huge export market. There will soon come a time, however, when Chinese products will threaten even Korea's high-tech industries. Domestically, Korea has been suffering from aggravating conflicts among different segments of society over major government-initiated projects. Labor-management relations have also been unstable. At a time when we need to join forces in a concerted effort to deal with national hardships, we instead witness the unity of the people as it disintegrates. This year, exports are expected to continue to lead the growth of Korea's economy as they did last year. However, it will take quite some time before the warmth of the economic upturn is felt by the people in general. Plant and equipment investment by domestic companies has recorded negative annual growth four times over the last seven years since 1997, when Korea was hit hard by its foreign currency crisis. The dampened facility investment could seriously undermine the growth potential of Korea's economy. ※ △8.7% in 1997, △38.8% in 1998, △9.6% in 2001, △1.3% during Jan.-Sep. 2003 If this trend continues, we will still be a long way from entering the era of a "National Income of 20,000 Dollars." People of Gyeonggi Province! I want to set "strengthened competitiveness through increased growth potential" as Gyeonggi's top priority policy for 2004. Stronger competitiveness is the ultimate survival strategy of Korea's economy in the 21st century. As you may well know, Gyeonggi accounts for 22% of the national economy and is the largest center of advanced industries in the country. Gyeonggi has been the engine of the Korean economy, growing twice as fast as the national average since the late 1990s. Therefore, efforts of Gyeonggi to sharpen its competitive edge will be a key for Korea's sustained development. Leading the strengthening of national competitiveness and presenting a vision of the future--this is the call of time for Gyeonggi and a role that we, the people of Gyeonggi Province, should take with pride. (1) Developing a High-tech Cluster and Strategic Industries in Eight Areas Based on its regional conditions and industrial capacities, Gyeonggi plans to develop high-tech industrial clusters and eight areas where it will make a focused effort to foster strategic industries befitting each area. The IT-LCD Cluster will be built in an area which connects the LG.Philips LCD Plant in Paju, Samsung Semiconductor in Suwon, and the National Industrial Complex in Poseong. In order to maximize the synergy effect of related industries, the cluster will have large-scale cooperative complexes and advanced foreign investment zones. It will also be provided with various living amenities for foreign investors, including international schools and housing complexes for foreigners. Along with the IT-LCD Cluster, Gyeonggi will divide its territory into the eight areas so as to realize their respective growth potential to the full. The Suwon-Seongnam-Anyang Area will be developed as a global R&D center involving a nanotechnology fabrication center, a biotechnology center, wireless Internet, multinational corporation business, and venture business. The Ansan-Shiheung Area will be the heart of advanced, high value-added manufacturing industries, while the Pyeongtaek-Hwaseong-Anseong Area will be a international logistics and foreign investment hub with Pyeongtaek Port as the pivotal player. A cultural and imaging center will be created in the Bucheon-Gwangmyeong Area, whereas the Goyang-Gimpo Area will be developed as the focal point of international business centering on the Korea International Exhibition Center (KINTEX). With business projects concerning the Gaeseong Industrial Complex in North Korea and the Peace Park, northern Gyeonggi will serve as an advance base for exchange between South and North Korea. The Icheon-Gwangju-Yeoju Area will grow into a center of ceramics and traditional/cultural industries. The Eastern Area, including Gapyeong and Yangpyeong, will be developed as a tourism and leisure industry center. (2) Building an R&D Network and Increasing SOC Competitiveness in the age of globalization and information can hardly be achieved without a world-class R&D network and proactive SOC investment. Gyeonggi will create an R&D hub that can rank with other top-class R&D centers of the world where leading-edge technology companies and highly-qualified human power can meet. In Gyeonggi this year, a total budget of KRW 300 billion will be spent to build R&D infrastructure and promote next-generation growth engines, such as IT, BT, and NT. In developing the high-tech cluster and the strategic industries in the eight areas, an imperatively important matter is to secure strong SOC, including roads, railways, and ports. In this respect, Gyeonggi plans to complete the construction of the container terminal in Pyeongtaek Port in September this year. It will make a contract with a port management company with world-class competitiveness in an effort to foster the port as the logistics hub of central Korea. In order to help enhance logistics competitiveness in the Seoul-Gyeonggi Area, Gyeonggi will increase transportation infrastructure with a 'spiderweb railway network' and a 'gridiron road network.' Regarding the issues involving the projected second Seoul-Gyeonggi area beltway and the construction of a section of the second Gyeongbu (Seoul-Busan) Expressway in the area, we will propose a specific plan within this year after consulting with the central government. In addition, we will spare no effort in the expansion of an area-wide traffic network in Northern Gyeonggi, including the Gyeongwon (Seoul-Wonsan) Line, Gyeongui (Seoul-Sinuiju) Line, and the Central Subway Line. In making Gyeonggi's competitiveness stronger, promoting the development of its eastern and northern areas is also an important challenge. Having already invested 32.1% of all its available financial resources in its northern parts in 2003, Gyeonggi will increase spending by more than five percentage points to 37.4% this year. For the nine cities and counties with relatively poorer finances in the eastern and northern areas to proceed with specialized projects befitting their conditions, the Gyeonggi Provincial Government will provide KRW 10 billion for each city and county for two years starting this year. In parallel with the proposed relocation of the US Forces in Korea, Gyeonggi plans to construct a free international city and international peace city in the northern and southern areas, respectively, as national projects. The English Town, in which the people of Gyeonggi Province have keen interest, will be created in the eastern area as well, following Ansan and Paju. (3) Supporting and Fostering SMCs Small and medium-sized enterprises (SMEs) are the basis of the national economy as well as the source of job creation. In order to enhance competitive strength of SMEs, Gyeonggi will support promising SMEs with the KRW 1 trillion SME Promotion Fund and a KRW 400 billion credit guarantee fund. For prospective exporting SMEs, KRW 100 billion of special funds will be provided, along with stronger support in their overseas public relations/marketing and export insurance. (4) Administration as a Factor of Production Public administration is also a factor of production that creates national wealth. In an effort to help curtail the expenses of corporations and promote their competitiveness, Gyeonggi has been improving the quality and speed of its administrative services. Above all, the provincial government will resolutely empower its authority to subordinate organizations in the front line. It will also ease and remove regulations that stand in the way of companies doing business. Administrative inspections have shifted toward supporting corporate activities. In the past, authorizing and permitting procedures were processed consecutively in sequence. However, they are now worked on all at the same time as a package, a measure conducive to enhancing competitiveness of companies in competition for time. After the winning the decision to build the USD 10 billion-dollar LCD plant in Paju last year, the Gyeonggi Provincial Government reduced industrial complex designation procedures from the usual two years to six months. The start of the construction was also advanced by one and a half years, allowing the expected completion of plant construction in June 2005. The construction period of the access road to the Hyundai R&D Center in Namyang, Hwaseong, was shortened from the projected three years to one year. Moreover, Gyeonggi introduced a 'Good School Formation' project in the area in an effort to provide an environment favorable to businesses. In addition, Gyeonggi plans to construct the access road to Samsung Semiconductor earlier than expected and establish international schools in Suwon and Budang for foreign employees working at Samsung. In order for the Korean economy to strengthen competitiveness and make a turning point for a second launch, productive labor relations should be established. Gyeonggi will spare nothing in its support and cooperation for mutually beneficial labor relations based on participation and cooperation to take root. Gyeonggi will lead the way, hand in hand with labor and management, in whatever projects that help attract investment and create jobs in the province. (5) Job Creation Last year, 30,000 jobs were lost across the nation due to the sluggish economy. The annual employment number never decreased since 1998. However, it increased in Gyeonggi last year. This year, the Gyeonggi Provincial Government plans to create 210,000 jobs, 60% of the national target, through fostering the high-tech cluster, active attraction of foreign investment, effective support for SMEs, and productive administrative services. Especially for job-seeking young people, we will spend KRW 12.2 billion to create 50,000 jobs. Ⅱ. Supporting the Buildup of Competitive Educational Infrastructure Respected People of Gyeonggi! In the knowledge-based society of the 21st century, education is often the underpinning on which the survival of a nation depends. In order to improve national competitiveness, producing qualified human resources is doubly important. Gyeonggi will work for enhanced educational competitiveness on two fronts: supporting educational infrastructure to produce global human power, and making public education more substantial. (1) Supporting the Production of Global Human Resources Building an educational system that meets the demands of consumers and introducing the concept of competition in every area of education to produce competitive human resources is already a global trend. Through close consultation with the Gyeonggi Provincial Office of Education, the Gyeonggi Provincial Government will push for the establishment of the 'Edu-belt,' designed to generate global human resources. To this end, we will divide Gyeonggi into eight areas and establish new 'special purpose high schools' in each area until the number of the schools aimed at enhancing specific fields, such as foreign languages and science, is increased to 16 by 2005 and 25 by 2010. The provincial government will also endeavor to attract independent private and special-purpose high schools in new towns that will be built in Iui-dong in Suwon, Pangyo, Paju, and Gimpo. Gyeonggi will provide active support to these schools so as to develop the area as the No. 1 model educational area in the nation. (2) Supporting the Buildup of a Strong Public Education Infrastructure While strengthening educational competitiveness has partly been devised to solve problems stemming from the high school standardization policy, equally important is the building of solid infrastructure for public education. It is the very basis of education as well as the top priority of educational supporting projects. Gyeonggi's efforts to improve the conditions of public education was already initiated last year and has been received favorably by local communities and residents. Based on the achievements, we will provide concentrated support to the 23 schools in the non-standardized areas of the province. Support will be made through 'Good School Formation' program that we will pursue in cooperation with the Gyeonggi Provincial Office of Education. With continuing support to the 50 small-sized schools, it will no longer be necessary to leave for larger cities for better education. In an effort to invigorate science education, the provincial government will run the "Task Force for More Active Science Education in Gyeonggi" together with the Gyeonggi Provincial Office of Education. Infrastructure for science education will be greatly increased, and a mid- to long-term plan for educating students talented in science will be worked out in the first half of this year. The English Town will be opened in Ansan in August of 2004 and in Paju in March of 2006. Centering on this institute, and in linkage with the foreign language education program of the Gyeonggi Provincial Government, we will build an English Study Network in Gyeonggi. The provincial government and the Office of Education will organize a task force to deal with the problem of student overflow in class stemming from a massive influx of people into the region. The team will work fast to streamline procedures for the construction of a school, from selecting the construction site to the final establishment. Ⅲ. Affluent Life and Pleasant Environment Esteemed People of Gyeonggi! Just as important as 'strengthening competitiveness' as a goal of the provincial administrative policy is the creation of a 'pleasant living environment.' Entering the 21st century and following an increase in the income level, people have taken a growing interest in the quality of life. At this juncture, Gyeonggi promises to strive to find what it should do in this respect, work out specific policy, and put it into practice, all designed to provide its ten million people with a better living environment. For this purpose, we will make an effort to create 'self-sufficient advanced cities.' We will work out a plan for the growth management of large cities in preparation for a potentially changed layout of urban space in the Seoul-Gyeonggi Area ten to twenty years ahead. The plan will no longer allow cities in Gyeonggi to sprawl to the detriment of the environment. Traffic congestion in the Seoul-Gyeonggi Area is one of the most urgent challenges of the provincial government and a problem that the people of Gyeonggi take as seriously as the problem of education. The Traffic Planning Corporation, which was formed last year, will take the initiative in developing specific measures to improve the operation system and service of public transport, and will put such measures into practice systematically. The operation of non-stop buses running a wide area and the late-night running of the subway will be further enhanced by increased routes and lengthened operating time. Besides these efforts, the provincial government will continue to pursue a policy to ensure the punctual and pleasant operation of mass transit. It will designate a pilot route to experiment with BRT (Bus Rapid Transit) and establish a area-wide center for changing means of transportation. With a view to helping remedy traffic congestion in the Southern Gyeonggi, the construction of an expressway from Yangjae to Yeongdeok as well as the New Bundang Line will be commended within this year. Gyeonggi also plans to build 55 bypass roads in areas with chronic traffic jams. It will continue to construct major road networks in an effort to strengthen connections between areas and enhance mobility. Recently, as a growing number of people recognize the importance and value of the environment, the people of Gyeonggi Province have come to expect their government to make a bold investment in ensuring clean water and pollution-free air. In answer to that expectation, we will without failure implement a project to bring down the BOD level lower than 10ppm by 2006 in the four largest streams, including the Anyang and Sin Streams. By then, our children will be safely playing in those waterways. The provincial government will make an effort to clean the sources of pollution along the Han River basin. It plans to make the Paldang Reservoir, the water source of 23 million people in the Seoul-Gyeonggi Metropolitan Area, first rate in terms of water quality. Gyeonggi also plans to introduce the 'Public Management of Environment System' this year, the first of its kind in Korea. In the system, the provincial government provides technology and financing to restaurants and livestock-raising farmers to treat polluted water. As welfare policy for this year, Gyeonggi intends to place emphasis on extending substantial assistance to those in need, those who have suffered hardships due to the prolonged economic slowdown, but have been denied access to existing welfare programs. Those who belong to the income bracket just above those entitled to National Basic Livelihood Security and thus, in a sense, have more financial difficulties will start to receive benefits this year in living and medical expenses. Underprivileged people, including those physically challenged and senior citizens who need society's care and support, will be better protected. We will expand the functions of public health centers, which are limited to the treatment of local people, and use them as centers for local social welfare activities as well as medical treatment. Gyeonggi will not be negligent in paying attention to blind spots in welfare with the publication of the 'Welfare Diary' which catalogues welfare policy in detail. To stabilize the life of those in low income brackets, 30,000 houses for long-term rent will be constructed each year until 2006. A large scale project to improve living conditions will be implemented for seven areas this year where communities are packed with poor qualify houses. The 21st century is an era of culture. Gyeonggi, which has developed an open and dynamic culture from the ancient times, has many cultural properties. The Suwon Hwaseong Fortress, which has been designated as a World Heritage Site by UNESCO, and the historic sites of Sirhak (Practical Learning) are just a few of many. By building the Sirhak Museum and the Filial Piety Institute, Gyeonggi will shed a new light on the spirit of "Seeking Truth based on Practical Matters,' an effort to reshape the identity of Gyeonggi. The province will increase cultural infrastructure, including the Provincial Korean Music Hall and Paik Nam June Museum. It will also increase opportunities for provincial residents to experience and enjoy cultural events first hand through the 'capillary cultural movement' in which cultural troupes visit people instead of waiting for them to come. Visit Gyeonggi Year 2005 will be an important occasion for the development of cultural and tourist industries in Gyeonggi. The provincial government will fully utilize the cultural assets in its boundaries for the tourist industry. It will create a cultural and tourist belt by linking cultural and tourist attractions by region and division. The purpose of women's policy of Gyeonggi is to develop female human resources and create an environment in which they can devote themselves to economic activities. To this end, this year Gyeonggi will establish day care centers at workplaces by industrial complexes as well as 25 national/public nursery schools. It will also increase support to private day care centers. The Gyeonggi Women Development Center will be established this year for the development of detailed programs to utilize women's capabilities and solve women's employment problems. Korea's agricultural policy is undergoing a great transition. Opening the agricultural market in the wake of a WTO agreement on agricultural products and an increase of FTAs is an unavoidable current of the times. In this situation, Gyeonggi will actively pursue 'selective and customized agricultural policy' in an effort to strengthen agricultural competitiveness. It will support technological development to enhance the quality of agricultural and livestock products. In response to the increasing demand for first hand experience-oriented tourism and leisure activities following the spread of the five-day week, we will develop many programs, including 'experience a green agricultural village,' to increase income of agricultural and fisheries villages. Ⅳ. Gyeonggi Province Will Provide Impetus for a New Launch Honorable people and public officials of Gyeonggi Province! In the 21st century, we have encountered many new challenges from both inside and outside. The international situation has been growing increasingly unstable, and the world's economy is faced with competition that is fiercer that ever. If we turn a blind eye to the current of the times and the flow of history and lose sight of where we stand today, we are destined to repeat the failure and frustration of the last century. Today, we are strongly impelled to have a sharp and cold understanding of political and economic developments on the global scene and deep insight into history. While leading the second launch of the national economy by attracting investments and strengthening competitiveness on the one hand and weathering the "reverse discrimination toward the Seoul-Gyeonggi Metropolitan Area" on the other, Gyeonggi has learned an important lesson. That is the confidence that, if we make a united effort, we can overcome whatever difficulties there may be. Even though it is a very difficult time with many challenges for the nation coming from every direction, we have to gain the right understanding of what task and role we should bear and play. The future of Korea relies on establishing a hub of Northeast Asia, and Gyeonggi stands at the center of the effort. Gyeonggi should lead the way to help the staggering national economy, and lead Korea to the broad road of unity and prosperity. I would like to thank you for your help and understanding toward the provincial administration last year. I hope that you will take interest in what we do and encourage us this year as well. I offer my sincerest wishes for the health and happiness of you and your family throughout this year. Thank you very much.