Discussions on the administrative integration of Busan, Ulsan, and Gyeongnam, aimed at countering the dominance of the Seoul metropolitan area, have yet to reach consensus on the approach, even as the new leadership marks its 100th day in office.
Gyeongnam Province insists on swiftly advancing integration according to the existing roadmap, while Busan City proposes a phased approach through a special union. The Busan City Council has stepped in to foster cooperation at the regional assembly level, as discussions among local leaders have stalled.
This divergence in positions became evident during the Busan-Ulsan-Gyeongnam policy council meeting in September and was further clarified during press conferences held by the Gyeongnam governor on October 6 and the Busan mayor and city council chair on October 8. While there is mutual agreement on the necessity of administrative integration, differences remain regarding the sequence of integration, securing fiscal authority, and establishing a cooperative framework.
At the September 8 policy council meeting, Busan Mayor Jeon Jae-soo maintained his stance that a special union should be formed first before moving toward administrative integration. Some in the media and local political circles noted a lack of consensus on the integration method, highlighting the differing views among Gyeongnam Governor Park Wan-soo's push for immediate integration, Jeon’s call for a special union, and Ulsan Mayor Kim Sang-wook's cautious approach.
While the three regions agreed on the need to build a super-regional economic zone and address common issues, they could not decide which approach—administrative integration or a special union—should take precedence.
During the October 6 press conference, Governor Park reaffirmed his commitment to the existing administrative integration roadmap.
He stated, "If the mayors of Busan and Ulsan agree to merge now, I would like to proceed with the schedule immediately," expressing his willingness to expedite the integration process. He also raised concerns that establishing a special local government first could lead to administrative and financial inefficiencies by creating another layer of bureaucracy above existing regional governments. He believes it is more prudent to directly pursue administrative integration rather than create separate cooperative bodies.
However, Park acknowledged that unilaterally pushing for integration without sufficient consultation with Busan and Ulsan could lead to regional conflicts. He aims to maintain the existing policy on administrative integration while persuading other local leaders.
Busan City Council: 'No tangible progress in discussions among local leaders'... Promoting cooperation at the council level
At a press conference marking the 100th day of the new Busan City Council on October 8, concerns were raised that discussions centered around local leaders have not yielded substantial results.
Chair Kang Mu-gil of the Busan City Council remarked on the integration discussions, saying, "While there are calls for integration in the media, I do not feel that progress is being made on the ground."
Kang pointed out that even during periods when the political composition of local leaders in Busan, Ulsan, and Gyeongnam was similar, integration discussions did not produce results. He explained that on September 29, the council chairs of the three regions met and shared the understanding that leaving discussions solely to local leaders would hinder progress. He emphasized, "The only way for Busan, Ulsan, and Gyeongnam, and for the 8 million residents, is integration."
The Busan City Council plans to establish a super-regional development council this month to jointly address nine areas, including securing national funding, relocating public institutions, fostering future industries, expanding regional transportation networks, and creating an energy ecosystem.
Kang also mentioned that they are reviewing the operational methods of local councils post-integration. They plan to reference the integration efforts of Gwangju and Jeonnam while addressing pressing issues such as water management and energy collaboration between Busan and Gyeongnam.
He noted that since the interests of Busan and Ulsan-Gyeongnam do not align in all areas, they aim to establish a foundation for cooperation through specific joint projects.
Mayor Jeon Jae-soo raises 'national and local tax distribution issues' regarding administrative integration
On the same day, Busan Mayor Jeon Jae-soo presented his vision for the city centered on becoming a marine capital and outlined plans to fulfill his campaign promises.
The implementation plan for the 9th term includes four major city goals and 122 detailed projects, with a total budget of 35.525 trillion won. Projects related to the restructuring of the North Port, the construction of the new Gadeokdo Airport, and the Busan-Ulsan-Gyeongnam 30-60 minute travel innovation (TRX) are also included.
However, the major promises announced did not specify the timeline for the launch of the special union or the transition to administrative integration.
After the press conference, when asked about the Busan-Ulsan-Gyeongnam administrative integration, Jeon mentioned the distribution structure of national and local taxes.
He expressed skepticism about the feasibility of adjusting the current national-local tax ratio, which is currently below 7:3, to a 6:4 ratio.
The proposed adjustment of the national-local tax ratio to 6:4 aligns with the goal of fiscal decentralization, which is a key objective of the Busan-Gyeongnam administrative integration. This highlights that substantial progress in integration discussions requires not only physical administrative consolidation but also a significant transfer of financial authority from the central government to local governments.
Meanwhile, Jeon maintained a cautious stance regarding the super-regional cooperation being promoted by the Busan City Council, stating, "We need to come together and discuss this matter carefully."
Jeon's comments on integration reflect an acknowledgment of the practical challenges of achieving fiscal decentralization while recognizing the need for dialogue among the involved parties.
As discussions on the Busan-Ulsan-Gyeongnam integration evolve beyond the initial consensus on the necessity of administrative integration, the focus is shifting to specific implementation methods and fiscal authority distribution issues. The Gyeongnam Province continues to uphold the existing administrative integration roadmap, while it remains to be seen how Busan City will clarify the timeline for the special union and phased plans, and whether the super-regional development council initiated by the three regional assemblies can serve as a platform to bridge the gaps among local leaders.
* This article has been translated by AI.
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