Anchor: The government has announced new incentives for the creation of “special consolidated cities” in an effort to achieve balanced regional development, pledging to spend up to 20 trillion won, or around 13-point-six billion U.S. dollars, over a four-year period. The announcement coincides with an active push for such mergers in the country’s central and southwestern regions ahead of local elections in June.
Choi You Sun reports.

Report: In line with its plan to decentralize the country and help other regions catch up with Seoul, the Lee Jae Myung administration has announced a package of incentives to encourage the consolidation of neighboring city and provincial governments.

At a press briefing Friday, Prime Minister Kim Min-seok pledged to inject up to five trillion won, or three-point-four billion U.S. dollars a year, over four years into “special consolidated cities” established through mergers of city and provincial governments.

The state support would be provided as grants and subsidies.

Kim said the initiative aims to nudge growth drivers away from the capital area to counter a rapid population decline and the threat of regional collapse.

He said the status of such cities will be raised to a level comparable to Seoul’s, with the number of vice mayors increased to four and their ranks elevated to the vice minister level.

The amalgamated cities would be allowed greater autonomy in personnel management and organizational structures, tailored to regional characteristics.

The government said these special cities will be prioritized in the next round of public institution relocations, likely to take place in 2027, and that incoming companies will receive incentives such as subsidies, tax benefits and streamlined approval procedures.

The announcement comes as the local governments of Gwangju and South Jeolla Province, both located in the country’s southwest, are actively pushing to merge ahead of the June 3 local elections, as are those of the central city of Daejeon and South Chungcheong Province.

Earlier, President Lee proposed balanced development strategies for five regional hubs: the Seoul metropolitan area and the newly reorganized southeastern, northeastern, central and southwestern regions.

The plan also includes three special self-governing provinces: Gangwon Province on the east coast, North Jeolla Province in the southwest, and the southernmost island of Jeju.
Choi You Sun, KBS World Radio News.