Busan and Gyeongnam to Integrate in 2028... Administrative Integration Roadmap Unveiled

Busan Metropolitan City and Gyeongsangnam-do have announced a joint position on a phased roadmap for administrative integration and the government’s approach to pursuing such integration.

On January 28 at 10:30 a.m., Busan City and Gyeongnam Province officially announced their joint stance on the promotion of Busan-Gyeongnam administrative integration at the promotional center of Dongwon Global Terminal in Busan New Port.

This announcement was made to clarify the two regions’ fundamental understanding of the procedures and institutional direction for administrative integration, and to present a standard for future consultations with the government.

The two local governments proposed a phased roadmap based on the principle of a bottom-up, complete administrative integration. Their plan is to hold a resident referendum within 2026, enact a special law in 2027 that defines the authority and responsibilities of the integrated local government, and complete the integration through the election of the head of the integrated local government in 2028.

They consider the resident referendum a core procedure for administrative integration, and stated that, provided there is sufficient explanation and public deliberation, it would be possible to hold the referendum within 2026. They also emphasized that if the government accepts the special law reflecting the preparations made by Busan and Gyeongnam, the launch of the integrated local government could be expedited through the referendum process.

The two regions expressed regret regarding the government’s recent approach to administrative integration. They pointed out that the government’s proposed “20 trillion won over four years” incentive for integration was presented unilaterally without sufficient consultation with local governments. They explained that this incentive amounts to temporary financial support and cannot be regarded as a permanent fiscal decentralization measure that would ensure the stable operation of the integrated local government after the merger.

Accordingly, they recommended improving the ratio of national to local taxes to at least 60:40, thereby securing more than 7.7 trillion won annually (based on the 2024 fiscal year) as a permanent resource for fiscal decentralization, and guaranteeing the autonomous financial management of the integrated local government.

The two local governments stressed the necessity of enacting a special law to effectively promote the integration of metropolitan governments, and also proposed holding an emergency joint meeting with the heads of the eight integrated local governments. The intention is to pre-negotiate the contents to be included in the special law and jointly submit them to the government and the National Assembly.

Park Hyungjun, Mayor of Busan, stated, “Administrative integration should not be a matter of formality or an election strategy, but rather the starting point for restructuring the national framework and achieving balanced regional development led by the regions themselves. If the government relinquishes central authority and guarantees fiscal and administrative decentralization through laws and institutions, the timeline for the well-prepared Busan-Gyeongnam administrative integration can be accelerated.”

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