Prime Minister Kim Min-seok said on the 16th that the government will prepare an extraordinary fiscal support plan for the integrated special city of up to 5 trillion won per year and up to 20 trillion won over four years.
On this morning at the Government Complex Seoul, Prime Minister Kim held a briefing on providing incentives for administrative integration and said, "The state will firmly support metropolitan local governments that choose administrative integration," and stated accordingly.
The incentives consist of four areas: fiscal support, status enhancement, priority transfer of public institutions, and industrial revitalization.
In the fiscal support institutional sector, the government decided to create an administrative integration grant (tentative name) and an administrative integration subsidy. It is expected that fiscal support of up to 5 trillion won per year will be possible for Chungnam–Daejeon and Gwangju–Jeonnam, respectively.
The government will form a joint "integrated local government fiscal support task force (TF)" with related ministries to finalize the details. The secured funds will be used to expand resident convenience facilities, expand welfare services, strengthen local flagship industries, and bridge gaps within the region.
The integrated special city will be granted a status and standing on par with Seoul. The number of deputy heads will be expanded to four, and their rank will be raised to Vice Minister level. Key posts such as fire chief and Deputy Minister for Planning and Coordination will also be operated at grade 1. Departments and bureaus reflecting regional characteristics will be established, and the autonomy of personnel management, including the selection, appointment, and promotion of affiliated public officials, will be increased.
In addition, the government will push for a "second transfer of public institutions" next year and will first consider the integrated special city area as the transfer destination. The duties of special local administrative agencies under the state currently within the integrated city will also be transferred, and the specific transfer targets will be decided by the integrated special city support committee under the Prime Minister after the law is enacted.
To revitalize industry, the government will provide employment subsidies and training support grants to tenant companies and pursue reductions in land rent and local government tax reductions for various development projects. For special zones newly established in the integrated special city, tax support will be strengthened to the level of opportunity development special zones.
Support will also be strengthened for various districts, including investment promotion districts and cultural industry promotion districts. The government will simplify various administrative procedures, such as approvals for development projects, and will prioritize overhauling regulations within the integrated special city.
Prime Minister Kim said, "Growth led by the regions is an essential strategy for the development of the Republic of Korea, and administrative integration is the key to implementing it successfully," and added, "The government will establish a support committee under the Prime Minister so that the integrated special city can successfully launch and grow as a core pillar of the 5-axis-3-special framework."