Heads of metropolitan governments in Gwangju-Jeonnam and Daejeon-South Chungcheong showed mixed reactions to the Lee Jae-myung administration's integration incentives, which would elevate merged metropolitan local governments to a "special integrated city" and provide up to 20 trillion won over four years at 5 trillion won each year.
Kang Gi-jung, the Gwangju mayor from the Democratic Party of Korea, and Kim Yung-rok, the South Jeolla governor, welcomed the government's incentives, while Lee Jang-woo, the Daejeon mayor from the People Power Party, and Kim Tae-heum, the South Chungcheong governor, said organizational management and the devolution of fiscal authority were insufficient and the financial support was lacking, calling it "disappointing."
Prime Minister Kim Min-seok announced the government's administrative integration incentive plan on the morning of the 16th at Government Complex Seoul. Kim said, "The government will prepare an exceptional fiscal support plan of up to 5 trillion won annually and up to 20 trillion won over four years for each special integrated city," adding, "We will grant clear incentives, along with corresponding autonomy and accountability, to local governments that integrate."
He went on to say, "We will push to reallocate national resources, including the creation of an administrative integration local allocation tax and an administrative integration support fund (tentative name)," adding, "In a joint effort with related ministries, we will form a 'task force for fiscal support to integrated local governments (TF)' to promptly finalize detailed measures and work closely with the National Assembly."
Kang, the mayor, and Governor Kim Yung-rok, who are pursuing a Gwangju-Jeonnam integration, gave positive assessments of the government plan. In a tea chat held at the Gwangju City Hall press room, Kang said, "This support goes beyond a simple fiscal investment and will be the starting point for Gwangju and Jeonnam to leap forward as a single living sphere and a single economic sphere," adding, "It will lead to population inflows, income growth and the creation of quality jobs, breathing new vitality into the regional economy as a whole."
Governor Kim Yung-rok called it "groundbreaking fiscal support of 20 trillion won over four years," and said, "We will prepare (for integration) by establishing an administrative system with expertise and accountability and ensuring that key policies can be smoothly implemented in the field." Kim added, however, "For this to lead to tangible outcomes that change the region's fundamentals, a fiscal support system must be put in place that can continue stably even after four years."
The heads of Daejeon and South Chungcheong say the Lee Jae-myung administration's integration incentives fall far short compared with the special provisions they initially sought.
Governor Kim Tae-heum gave a curt review of the government's integration incentives, calling them "sweet talk to soothe a crying child." Kim said, "Daejeon City and South Chungcheong Province demanded 8.8 trillion won in fiscal support, including the transfer of capital gains taxes, corporate taxes and value-added taxes," adding, "Without legislating a comprehensive tax overhaul and instead offering time-limited support for four years, operating an integrated local government will become difficult in the mid to long term."
Kim particularly said, "None of the matters Daejeon and South Chungcheong requested—such as exemption from preliminary feasibility studies, farmland conversion, or designation of national industrial complexes—were mentioned," adding, "It merely reflects the views of administrative ministries that do not wish to relinquish central authority."
Mayor Lee Jang-woo said, "Considering the president's promise of bold devolution of authority and support, the incentive briefing is inadequate," adding, "I hope the president will, with strong resolve, demonstrate a clear will for genuine local decentralization."