Park Heong-joon, the Busan mayor, said this about the recently accelerating discussion on administrative integration of metropolitan local governments during a ChosunBiz interview held on the 5th at the "Busan City Seoul Office" in Yeouido, Yeongdeungpo-gu, Seoul.
Busan is currently pursuing administrative integration with South Gyeongsang. Unlike some regions that have opted for a "speed race," the plan is to proceed step by step through resident opinion gathering and a public deliberation process. The approach differs from Gwangju and South Jeolla, which are pushing administrative integration after enacting a special law.
Gwangju and South Jeolla have completed preparations with a goal of launching the integrated special city in July. As the administrative integration special law and related amendments passed the Cabinet meeting, a combined head of the local government can be elected in the June local elections. In contrast, the integration laws for Daejeon and South Chungcheong, and for Daegu and North Gyeongsang, are on hold due to regional backlash and political disagreements.
The mayor said, "The core principle of metropolitan administrative integration is decentralization, but the South Jeolla–Gwangju special law is a law without decentralization," adding, "A method that only enlarges the body is like making an obese elementary school student." He went on, "If you force through integration in a few months, sources of conflict will keep arising afterward."
The mayor also questioned the consistency of the government's policy to foster Busan as an international financial city. He said, "Busan has pursued an international financial city strategy since the Roh Moo-hyun administration, and the core task was the transfer of the Korea Development Bank," adding, "The government notice has been issued and internal preparations at the Korea Development Bank are complete, but it is on hold for political reasons."
He added, "They say the transfer is difficult because of opposition from the Korea Development Bank union, yet they say they will push the HMM transfer," and said, "HMM is a private company and the Korea Development Bank is a policy bank, so the logic does not hold." The following is a Q&A with the mayor.
― You are seeking a third term in the June 3 local elections. How would you assess your last term?
"I focused on reviving Busan's potential. As a result, investment and employment increased, and the city's competitiveness rose. As investment expanded around high-tech industries such as data, future mobility, and smart logistics, we succeeded in attracting 4 trillion won in investment, the largest ever. The number of regular employees surpassed 1 million for the first time, and the employment rate also hit a record high. The city's brand value rose as well. We also expanded cultural and tourism infrastructure to transform the city into a place where citizens can stay and enjoy themselves."
― What was the top priority in running the city government?
"The ultimate goal is to make Busan a city where you would want to live even if you were born again. We worked to make Busan a global hub city and a city of citizen happiness. We laid the groundwork to leap into an international free business city centered on innovation infrastructure, industry, and talent. In various evaluations related to quality of life, Busan's citizen happiness indicators have been steadily improving."
― After the Ministry of Oceans and Fisheries (MOF) transfer, what tasks are needed for the vision of a maritime capital?
"The transfer of institutions alone is not enough. We need to integrate dispersed maritime policies around the Ministry of Oceans and Fisheries (MOF) to strengthen strategies and control tower functions that cover ports, shipping, shipbuilding, marine energy, and marine bio overall. On top of this, we must combine the headquarters of shipping and logistics corporations with financial functions to grow into a global maritime financial hub."
― Discussions continue on the transfer of HMM, the nation's No. 1 carrier.
"The HMM transfer is not just an issue for Busan but a national strategy to enhance Korea's shipping competitiveness. The Port of Busan, the world's seventh-largest container port, and the headquarters need to be together to enable on-site decision-making. If the headquarters transfer, people and capital will move together, making it possible to form a maritime financial cluster. It can also provide quality jobs for local talent."
― There is also criticism that the perception of Busan as the 'second capital' has weakened.
"Busan was long affected by growth-suppression policies, and as the industrial structure shifted to IT and digital, related corporations and talent moved to the greater Seoul area. As a result, concentration in the capital region intensified. From the beginning of my term, we focused on changing the city's structure by pursuing the global hub city strategy. I believe now is an important moment for Busan to take off again."
― What is the status of the Busan–South Gyeongsang administrative integration push?
"We declared the push for integration four years ago and announced a 2028 integration roadmap in January. We plan to prepare a special bill within the first quarter of this year. After that, we will explain the effects of integration to residents and decide whether to proceed through a resident referendum within the year."
― How do you assess the current method of discussing administrative integration?
"The current integration discussion is being pushed hastily to match the local election schedule. The ruling party, which had opposed it, changed its stance after the president's remarks and is forcing integration with the local elections as a starting point. It is regrettable that the resident deliberation process has been insufficient and that it has turned into a political issue."
― How do you assess the Gwangju–South Jeolla administrative integration special law?
"To properly pursue integration, it is desirable to first establish a basic law and then create a special law that reflects regional particularities. The current special law lacks decentralization, and issues such as the administrative organization and government buildings are not settled. In the end, the newly launched special mayor will have to operate in a structure that requires consultations with the Ministry of the Interior and Safety. They say they will provide 5 trillion won every year, but in the actual operation process, there is a high possibility that conflicts and expense will follow."
― There is a possibility that the "5 trillion won incentive for administrative integration" will be used as a political slogan in the local elections.
"I believe such political calculations are at work. Approaching it as an election strategy is not desirable."
― What is your position on the government and ruling party's push to convert the Korea Exchange (KRX) into a holding company and to separate KOSDAQ?
"Since being designated a financial hub, Busan has built a financial ecosystem centered on the international financial center. But the relocation of major financial institution headquarters and the inflow of capital remain insufficient. The exchange's headquarters are in Busan, but core market functions are concentrated in Seoul. The current amendment omits provisions that would specify the location of the head office upon conversion to a holding company. If it passes as is, the door opens for key subsidiaries to transfer to Seoul with only changes to their articles of incorporation."