Government Introduces 'Balanced Growth Impact Assessment'... Establishes Foundation for 5 Major Regions and 3 Special Zones Balanced Development

Amendment to the Local Decentralization and Balanced Development Act Passed in the National Assembly

Advance Impact Assessment Required from the Policy and Budget Planning Stages

Foundation Established for Joint Participation by Central Government, Local Governments, and the Private Sector

From now on, when implementing national policies or fiscal projects, the impact on balanced regional development must be assessed in advance.

On May 7, the Ministry of the Interior and Safety announced that the amendment to the Local Decentralization and Balanced Development Act, which includes this measure, was passed at the National Assembly Main Chamber.

According to the amendment, central administrative agencies are required to conduct a "Balanced Growth Impact Assessment" from the planning stage of government policies or budget projects, analyzing in advance how these initiatives will affect regional disparities.

National Assembly plenary chamber. Photo by Yonhap News.

The specific operation of the impact assessment is currently being studied through a commissioned research project. Policies or projects that receive high scores in the assessment may be given priority in budget allocation recommendations by the Committee for the Era of Local Autonomy, or be favored in the process of selecting candidates for the preliminary feasibility study. These measures are under consideration.

In addition, a "Special Interregional Account" will be newly established to provide financial support for cooperative projects jointly promoted by multiple metropolitan governments. The Ministry explained that this will ensure stable fiscal support for projects such as fostering strategic industries by region and building wide-area transportation networks.

Furthermore, to enhance the effectiveness of these interregional cooperative projects, the legal basis has been established for a "Special Interregional Agreement," which is jointly signed by the central government, local governments, and the private sector after deliberation and resolution by the Committee for the Era of Local Autonomy, as well as for the establishment of a "Special Interregional Cooperation Body" to coordinate the entire process of project implementation.

The Balanced Growth Impact Assessment and the Special Interregional Agreement will take effect six months after the promulgation of the amendment, while the Special Interregional Account will be implemented starting January next year.

This content was produced with the assistance of AI translation services.