Go to Main Content

Mayor's Hope Journal

  • Efforts to Reduce the Debts of Seoul Metropolitan Government
    [Mayor Park Won Soon’s Hope Journal 175]

  • Mayor's Hope Journal SMG 1873

    We at Seoul Metropolitan Government are making multifarious efforts to reduce the city’s debts. Right after my inauguration as Mayor, I got briefed on how much Seoul Metropolitan Government owed: close to 20 trillion won and daily interest of 2 billion won. I asked the city officials how they could go to sleep in such a situation.

    The lion’s share of the debt is attributable to the reckless urban development projects implemented by SH Corporation. The key to solving the problem is to sell off said corporation’s assets at a proper time. City officials in charge of finance and Magok Project have made painstaking efforts. Compared to the time when I was sworn in as Mayor, the debt has been decreased by 1.073 trillion won from 19.997 trillion won. At present, the debt stands at 18.914 trillion won, which is still a huge amount.

    As part of efforts to reduce the debt, I operated an Onsite Mayor’s Office in Magok and made working-level decisions on May 13 and 14. The decisions I made there included a system for the provision of service for the invigoration of sale of Seoul Metropolitan Government-owned housing sites and improvement of the relevant system. The decisions were made with proposals by private businesses taken into account. The one-stop support was established as a body controlled by Director General Seo Noh-won who is in charge of the Magok Project. He bowed low before the participating private businesses, expressing his resolve to serve them from the bottom of his heart in connection with the worthy cause of reducing Seoul Metropolitan Government’s debts.

    On that day, the officer in charge of marketing at SH Corporation announced a plan for the sale of Seoul Metropolitan Government-owned housing sites in Munjeong-dong. I was happy to see that he was working very earnestly. A contract signing ceremony was held for the move-in of the Lotte and E-Land Consortia in the industrial and business complexes in Magok, with Korea Development Bank (KDB) promising to provide financing. The amount received as a result of the sale of housing sites in Magok exceeded 1 trillion won. We plan to accelerate the relevant steps.

    We at Seoul Metropolitan Government will do our best to serve private businesses’ needs to push through with the sale of housing sites to reduce the city’s debts. Remember, we solved the problem related to the 615 apartments in Eunpyeong New Town, which had remained unsold, by maintaining such attitude.