South Korea will inject 75-point-three trillion won, or nearly half of the 160-trillion-won Korean New Deal project, into regional development outside the Seoul metropolitan area.

This comes after President Moon Jae-in announced on Tuesday that balanced regional development would be added as a new pillar of the initiative, a post-coronavirus development strategy.

At the second session of the New Deal strategic dialogue, Finance Minister Hong Nam-ki said synergy between the New Deal and regional development is expected to transform the country's economy and society.

The central government's initiatives will include the establishment of smart cities and disaster management systems in provincial regions, as well as joint projects with municipal governments to build smart schools and cutting-edge road systems.

Regional governments and state-run institutions will also seek various projects with the central government expected to offer tax and other financial incentives.