The government and the ruling party plan to fully cover tuition at regional national universities and create a new "Regional Future Growth Fund" as part of a balanced regional development strategy known as "five poles and three special zones." The aim is to turn regional national universities into hubs for attracting talent through free education, while also improving living conditions in areas such as education, healthcare and housing to build a virtuous cycle of locally driven growth.
The Democratic Party said on the 25th that it held a party-government consultation with the Ministry of Planning and Budget to review next year's budget bill and was briefed on a spending plan along these lines. The party said that attracting companies alone would not be enough to secure momentum for locally driven growth, so it plans to strengthen regional growth foundations by drawing in talent. A Democratic Party official said support to bolster the competitiveness of flagship national universities would continue at both the government and party levels.
The plan also includes measures to improve living conditions. The government will create the "Regional Future Growth Fund" to help upgrade local living conditions and develop each region into a future growth hub. A special account will also be set up to expand essential medical services in the regions, with concentrated support. A new "Growth Engine Special Subsidy" will help cover facility investment costs when anchor firms relocate to non-capital regions.
The party and government put forward this package of measures out of a judgment that existing approaches alone cannot drive locally led growth. The comprehensive budget planning reflects the view that talent and businesses will gather in a region, and sustained growth becomes possible, only when overall living infrastructure — including education, healthcare, culture and housing — is expanded together.
Separately, in the area of young people, the government will introduce an "internship semester" for university students. Under the system, students who work as interns for one semester receive academic credit. The party and government will also create a "Child Independence Fund" that provides up to 1.2 million won per year until age 18. The supply of rental housing for young people will also be expanded.
Park Hong-keun, Minister of Planning and Budget, said the budget bill would be finalized swiftly, reflecting the views of Democratic Party lawmakers.
