Gov't slashes Saemangeum budgets after Jamboree fiasco

Economy

Published: 29 Aug. 2023, 17:36 Updated: 29 Aug. 2023, 19:12

Gov't slashes Saemangeum budgets after Jamboree fiasco

Scouts retreat from the World Scout Jamboree campsite in Buan County, North Jeolla, on Aug. 8. [NEWS1]

The Finance Ministry slashed next year’s budgets for Saemangeum infrastructure projects by nearly 80 percent, or more than 500 billion won ($378 million), following the recent fiasco during the World Scout Jamboree held at the reclaimed wetland on the country’s southwest coast.

The latest decision triggered a strong backlash from the local government, which argues that “Saemangeum was unfairly held accountable for the Jamboree crisis.”

The provincial government of North Jeolla, where Saemangeum is located, said that “out of next year’s 660-trillion-won government budget, the amount allocated for the North Jeolla province came in at 7.92 trillion won, down by 387 billion won, or 4.7 percent, from 2023’s 8.31 trillion won,” in a statement Tuesday.

“The budget cut was particularly huge for infrastructure projects in Saemangeum,” the province said, adding that “it seems that the unexpected Jamboree crisis has negatively impacted the decision.”

The initial central government budget program allotted for the major 10 infrastructure projects for Saemangeum development was 662.6 billion won, which was ultimately cut by 78 percent to 147.9 billion won by the Ministry of Economy and Finance during the review process.

Meanwhile, the overall budget for infrastructure projects nationwide has been increased by 4.6 percent on year to 26.1 trillion won.

The initial budget plan for Saemangeum-related projects included 10 billion won for a Saemangeum port branch railway line, 1 billion won for main road construction and 7.2 billion won for an environmental and ecological complex, which have all been entirely cut by the Finance Ministry.

Budgets for other projects that made it onto the final plan were also significantly cut.

Vice Governor Lim Sang-gyu of North Jeolla speaks to the press at the North Jeolla office building on Tuesday. [KIM JUN-HEE]

The original 119.1-billion-won central government budget for a highway between Saemangeum and Jeonju was slashed to 33.4 billion won. The highway project, which has a total budget of 2.42 trillion won, is slated for completion by 2025.

The budget for the Saemangeum International Airport, which the government aims to complete by 2028, was reduced from 58 billion won to 6.6 billion won, a link road project from 90.8 billion won to 1.1 billion won and a new port from 167.7 billion won to 43.8 billion won.

“These budget cuts will significantly hamper the Saemangeum development plan, which is a state project,” according to North Jeolla.

“The budgets for core projects — which involve a port, roads and railways — in the Saemangeum development master plan were reduced across the board,” the province said, adding that “those involved in the decision, such as the fiscal authorities, should be held accountable during the parliamentary deliberation” for throwing cold water on the budding enthusiasm for large-scale investments in the region.

The recent controversies surrounding poor planning and management throughout the World Scout Jamboree event have led to skepticism towards the Saemangeum project.

“The North Jeolla province used the Jamboree event as an excuse to skim money allotted for the Saemangeum infrastructure project,” according to People Power Party Rep. Song Eon-seog of the National Assembly’s special committee on budget and accounts.

“We are gravely concerned that the recent budget issue could lead to a halt on the Saemangeum drive, which has just now begun to gain traction,” Lim Sang-gyu, an administrative vice governor of North Jeolla, said during a press briefing held on Tuesday, while also promising to restore the budget plan.

BY KIM JUN-HEE, SHIN HA-NEE [shin.hanee@joongang.co.kr]