There are growing concerns that so-called "prime" public institutions with large ripple effects on local economies could be concentrated in specific regions. As the government pushes a second-round transfer of public institutions out of the capital area and sets a principle of "priority allocation to administrative integration regions," debates over fairness are spreading, especially in regions where integration talks have not gained momentum.
The government plans to establish transfer plans for 350 public institutions in the capital area within this year and implement them in phases starting next year. This underlies observations that Gwangju Metropolitan City and South Jeolla Province, where administrative integration talks are proceeding the fastest, could benefit the most.
According to Gwangju City and South Jeolla Province on the 2nd, the two local governments have proposed to the government the transfer of a total of 40 institutions, including 10 key agencies. Ahead of the second public institution transfer plan to be announced in the second half of this year, they preemptively presented the institutions they hope to attract.
The key agencies proposed by Gwangju and South Jeolla are: ▲ Korea Agency for Infrastructure Technology Advancement (KAIA) ▲ National Agricultural Cooperative Federation ▲ National Federation of Fisheries Cooperatives ▲ Korea Airports Corporation (KAC) ▲ Korea Data Agency ▲ Korea Racing Authority (KRA) ▲ Korea Institute for Advancement of Technolog (KIAT) ▲ Korea District Heating Corporation (KDHC) ▲ Korea Energy Technology Evaluation and Planning (KETEP) ▲ Korea Environment Corporation (K-eco).
These institutions are evaluated as large public institutions with up to 5,000 executives and employees and a stable revenue base. A large inflow of people is highly likely to lead to increased consumption, expanded sales in local commercial districts, and job creation in services. As the ripple effect on the local economy is significant, competition to attract them is fierce.
In addition to Gwangju and South Jeolla, several other local governments, including North Jeolla, North Gyeongsang, Busan, and South Gyeongsang, are reportedly hoping to attract major institutions such as the National Agricultural Cooperative Federation and the Korea Racing Authority (KRA).
The government has made clear its policy of prioritizing allocation to administrative integration regions. Minister of the Interior and Safety Yoon Ho-jung said during a National Assembly interpellation session on Feb. 11 regarding the second public institution transfer, "We will ensure that public institutions are given priority allocation to places that undergo (administrative) integration."
Prime Minister Kim Min-seok also said, "We will give priority consideration to (transfers) in integrated regions." Earlier, President Lee Jae-myung noted at a New Year's press conference that public institutions would be "concentrated in places that achieve wide-area integration and sent in greater numbers."
Accordingly, the prevailing view is that administrative integration will become the prerequisite for attracting public institutions. Gwangju and South Jeolla are moving ahead after the special act on administrative integration passed The National Assembly's Legislation and Judiciary Committee, led by the ruling party, on Feb. 24. It then passed the National Assembly plenary session on the 1st.
By contrast, Daegu–North Gyeongsang and Daejeon–South Chungcheong have related bills pending in the National Assembly, while Busan–South Gyeongsang have not even introduced bills.
Voices of concern are growing in regions where integration talks have been delayed. Lee Jeong-mun, head of the Democratic Party of Korea's South Chungcheong Provincial Chapter, said at a press conference on Feb. 25, "If the special acts for Gwangju–South Jeolla or Daegu–North Gyeongsang pass first and they request the better institutions ahead of others, the government will have no choice but to accommodate that."
It is also interpreted in this context that local lawmakers from the People Power Party decided to push for the passage within the February extraordinary session of the National Assembly of the previously shelved special act on Daegu–North Gyeongsang administrative integration.
Special self-governing cities and provinces that are not subject to administrative integration are in a similar position. The four special self-governing jurisdictions — Gangwon, Jeju, North Jeolla, and Sejong — issued a joint statement in January saying, "We agree with the government's balanced development strategy and the purpose of wide-area integration, but special self-governing cities and provinces must not be disadvantaged due to incentive support."
An official at a local government said, "Competition among regions over the transfer of public institutions is gradually intensifying," adding, "Coordination between the policy goal of balanced development and regional fairness is expected to emerge as the key issue."