Anchor: President Lee Jae Myung pledged to support plans to merge neighboring city and provincial governments as part of his push for growth outside the capital area. Speaking at a New Year's press conference on Wednesday, Lee said that a major shift toward “region-led growth” was underway, stressing that to become a driver of national growth, each region must have greater scale. The president described ongoing efforts to merge the governments of Daejeon and South Chungcheong Province, as well as Gwangju and South Jeolla Province, as a symbolic starting point for region-led growth and national survival.
Kim Bum-soo has more.

Report: President Lee Jae Myung says it's time for South Korea to change its economic paradigm, advocating a shift to what he calls "regionally-driven growth."

Lee laid out his proposed road map at a New Year's news conference on Wednesday. 

[Sound bite: President Lee Jae Myung (Korean-English)]
"First, the major shift toward 'regionally-led growth' has already begun. For each region to lead Korea's growth, it must possess the appropriate 'scale.' The ongoing regional integrations of Daejeon and South Chungcheong Province and Gwangju and South Jeolla Province are a symbolic starting point for 'regionally-led growth' and a national survival strategy that must be successfully implemented."

He explained that the Seoul-metro-centered nation will soon be divided into five superregional development zones and three special self-governing provinces, allowing for the growth of megacities and specialized industries in each region.

The president also said that new policies will be gradually introduced to foster start-ups and help overcome the "K-shaped growth" pattern, wherein some sectors surge while others stagnate.

[Sound bite: President Lee Jae Myung (Korean-English)]
"Although the culture budget has increased significantly to nine-point-six trillion won this year, we are still far from being able to call ourselves a 'culturally advanced nation.' We will make support for and investment in culture a core growth strategy to cultivate future growth engines and enhance our national brand."

While inter-Korean ties remain icy, the president reiterated that the South will continue seeking creative solutions to resume dialogue with the North, calling this the basis for stable growth. 

[Sound bite: President Lee Jae Myung (Korean-English)]
"Fifth, to enable our economy to take another leap forward through 'stable growth supported by peace,' we will move forward unwaveringly towards a future of peaceful coexistence and shared growth. First, as a 'pacemaker,' we will make every diplomatic effort to ensure that North Korea-U.S. dialogue is held as soon as possible, and we will also create the conditions for the resumption of inter-Korean dialogue."
 
He said that while the sharp, cold tension won't melt away all of a sudden, Seoul will continue to pursue measures to elicit a positive response from Pyongyang.

Lee's news conference comes as economists warn that the South Korean economy has entered a phase of low structural growth.

The president called for public support for his new growth plan, saying that throughout South Korea's history, the country's people have always been its source of strength.
Kim Bum-soo, KBS World Radio News.