South Korea's Prime Minister Chung Un-chan (3rd R) speaks about the government's decision on a plan for a new city called Sejong during a news conference in Seoul January 11, 2010. South Korean President Lee Myung-bak put his rising popularity ratings and economic reform plans at risk on Monday by changing the focus of the planned new city that has angered a key power broker in his ruling party. The pro-business president wants to dump the original plan to shift large chunks of the government from the capital to Sejong about 150 km (95 miles) south of Seoul.(Xinhua/Reuters Photo) Photo Gallery>>>

    SEOUL, Jan. 11 (Xinhua) -- The South Korean government unveiled on Monday its revised plan on transforming a city, originally designed to be a new administrative center, into a business hub, in a complete reversal of President Lee Myung-bak's key campaign pledge.

    THE REVISED SEJONG CITY PLAN

    In a largely expected about-face of the pledge President Lee campaigned on, the country's Prime Minister Chung Un-chan said Monday morning the government will turn the new city of Sejong into a new business hub, a far cry from the original plan envisaged by the late President Roh Moo-hyun to move nine ministries and four government agencies to South Chungcheong province, about 160 km south of Seoul, in order to make a new administrative center and solve regional disparity.

    "The city will be reshaped into a center of industries, universities and research institutions that are conducive to creating jobs and wealth. ...The Sejong City project will be completed by 2020 following an accelerated and intensive development schedule," the Prime Minster's Office said.

    THE INCEPTION AND THE DEVELOPMENT OF THE IDEA

    The relocation plan, initiated by Roh and taken up by his successor Lee, partially helped Lee win a landslide victory in the presidential election in 2007, but he has cautiously showed skepticism towards the original blueprint since the issue became the hot potato after the new prime minister, designated by Lee, called it "impractical."

    Following weeks of bad blood among ruling and opposition parties over the plan, with a rare infighting in the governing Grand National Party further complicating picture, the president late last year offered an apology in a nationally televised speech to the public about not keeping his campaign pledge and asked for understanding for drawing up an alternative plan.

    THE NEW BUSINESS HUB

    The unveiled plan includes investment plan worth about 4.5 trillion won (4 billion U.S. dollars) by domestic and foreign companies, including South Korean business giants Samsung Group, Hanhwa Group, Lotte Group and Woongjin Group, which is expected to create more than 22,000 jobs.

    Samsung Group's five units, including the world's top memory chip maker Samsung Electronics Co. Ltd, will set up production lines or research-and-development centers for light-emitting diodes (LED), solar batteries, fuel cells and bio-health chips, according to local media reports.

    The chemicals-to-construction giant Hanhwa Group will also build research-and-development and manufacturing facilities for its solar energy and defense businesses, while retail giant Lotte Group and Woongjin Group's flagship unit, the water purifier maker Woongjin Coway Co., will also invest in the city, according to the local media.

    South Korean conglomerates' steps are in line with the government's much-disputed plan to transform the new city of Sejong into a business city, although the initial plan envisaged by the late President Roh Moo-hyun was to move nine ministries and four government agencies to South Chungcheong province.

    Businesses set to move into the new city will be given tax benefits, cheap lands and government subsidies, the government said.

    STERN PROTEST FROM THE OPPOSITION

    But the plan was quick to face backlash from opposition party lawmakers, who demand the government stick to the plan and called the about-face a "betrayal" to the public.

    "As the main opposition, we will stick to the original plan and protect the value of balanced development of the country," said the Democratic Party (DP) leader Chung Se-kyun.

    "The reversal of the original plan will remain as the work policy mistake of all time," said the Liberty Forward Party (LFP) leader Lee Hoi-chang, whose party base is in South Chungcheong province, where the city is located.

    The two parties will jointly protest the government blueprint inside and outside the parliament, while other provinces, including Gyeonggi province surrounding Seoul, are raising voice against what they see as a disproportionate focus the government gives on the new city.

    Lee, following the announcement by the prime minister, told the meeting on Monday that the development plan for Sejong City should not be a political issue, while local media say he is considering holding a separate press conference on the revised plan.