South Korean lawmakers address regional economic slump during National Assembly audit

During a National Assembly audit of regional financial and tax institutions, lawmakers raised urgent concerns regarding the economic downturn in South Korea's non-capital regions. The audit, conducted by the Strategy and Finance Committee, included the Bank of Korea's regional branches, local tax offices, and customs headquarters.

Lawmakers highlighted the severe struggles within the regional construction and real estate sectors, noting that high unsold housing inventories and corporate bankruptcies are exacerbating the crisis. Specifically, concerns were raised that the Bank of Korea's interest rate decisions often prioritize the Seoul metropolitan area, potentially overlooking the unique hardships faced by regional economies.

Data presented during the session revealed that corporate loan delinquency rates in the Daegu region reached 1.08%, significantly higher than the national average of 0.78%. Kim Ju-hyeon, head of the Bank of Korea's Daegu-Gyeongbuk branch, attributed the slump to slowing growth in major industries, high dependence on self-employment, and the combined impact of a stagnant real estate market. He suggested that long-term new growth engines and selective fiscal support are necessary to address these structural issues.