By Na Jeong-ju
Staff Reporter

The government plans to complete the relocation of 177 state-owned companies and public corporations based in the capital area to provincial areas by the end of 2012.

In a report to the Construction and Transportation Committee of the National Assembly, the Ministry of Construction and Transportation said it will finalize the relocation plan this year.

Under the initial schedule, the government will choose the sites for the relocation of the 177 entities this year after gathering opinions from the companies concerned and the public. Construction may start as early as next year, the ministry said.

Debate is heating up over which organizations should be moved, and to where. Provincial cities have vied to host companies with large assets, such as Korea Electric Power Corporation with assets totaling over 55 trillion won.

Other giant state-owned firms and corporations, such as National Health Insurance Corporation, Korea National Housing Corporation, Korea Gas Corporation and Korea Highway Corporation, will move their headquarters under the plan.

The relocation is a part of a project aimed at promoting the regional economies outside the capital ambitiously pursued by the Roh Moo-hyun administration. Seoul City and a majority of lawmakers from the main opposition Grand National Party have criticized the move, arguing the project should be put to a public vote in advance.

Opinions vary on the amount of costs required for the project. The relocation will be a huge fiscal burden to the government, along with its venture to relocate dozens of administrative offices to South Chungchong Province.

The ministry said it will divide the 177 entities into a dozen categories depending on their size and the functions they play. One province may host the companies included in one category, ministry officials said.

The Roh administration has claimed the relocation is designed to promote a balanced national development, and to enhance the living standards of residents in both the capital area and provinces.

The National Assembly passed a bill early this year to relocate a number of government agencies to local areas with the exception of Chong Wa Dae, National Assembly, Supreme Court, and the Foreign and Unification Ministries.

The ministry said it will present a bill on the relocation of publicly-owned companies to the National Assembly soon after gathering public opinions.

jj@koreatimes.co.kr