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Busan and Gyeongsangnam-do Present a Roadmap for Administrative Integration Aimed at 2028

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Busan Metropolitan City and Gyeongsangnam-do jointly announced their official position on January 28 at 10:30 a.m. at the Dongwon Global Terminal Promotion Center at Busan New Port, presenting a phased roadmap for promoting administrative integration between Busan and Gyeongnam, as well as their shared stance on the central government’s approach to advancing administrative integration.

This joint announcement was prepared to clearly articulate Busan and Gyeongnam’s fundamental understanding of the procedures and institutional framework required for administrative integration, and to clarify the direction of future consultations with the central government.

Presentation of a Phased Roadmap for Bottom-Up, Comprehensive Administrative Integration
As the first step toward administrative integration, the two local governments outlined a basic plan to conduct a resident referendum within 2026, enact a special act in 2027 defining the authority and responsibilities of the integrated local government, and complete the administrative integration through the election of the head of the integrated local government in 2028.

In particular, Busan and Gyeongnam regard the resident referendum as the core and indispensable procedure of administrative integration. They maintain that, provided there is sufficient explanation and a thorough public deliberation process, holding a resident referendum within 2026 is entirely feasible.

In addition, with regard to the central government’s promotion of administrative integration, the two local governments made it clear that if the government accepts a special act reflecting the substance that Busan and Gyeongnam have prepared thus far, it would be possible to advance the launch date of the integrated local government following the completion of the resident referendum process.

This underscores the position that administrative integration should not be forced forward under rigid timelines, but can instead be pursued in a stable and flexible manner depending on the government’s institutional decisions.

Expression of Regret Over the Government’s Recent Approach to Administrative Integration
The two local governments expressed regret that the government’s recently proposed administrative integration incentive package, totaling KRW 20 trillion over four years, was presented in a unilateral and hasty manner without sufficient consultation with local governments.

They further stated that because the incentive consists solely of time-limited fiscal support, it is difficult to regard it as a permanent fiscal decentralization measure capable of enabling the integrated local government to function stably after integration.

Busan and Gyeongnam emphasized that for an integrated local government to operate with genuine authority and responsibility, fiscal independence must be guaranteed. They noted that a short-term, incentive-centered support scheme would be insufficient to shoulder the administrative and fiscal burdens and responsibilities that would arise after integration.

Accordingly, the two local governments formally proposed to the central government that permanent fiscal decentralization measures are essential, including improving the ratio of national taxes to local taxes to at least 6:4 to secure more than KRW 7.7 trillion in stable annual revenue based on the 2024 fiscal year, as well as guaranteeing full local autonomy that allows the integrated local government to manage its finances independently.

Proposal for an Emergency Joint Meeting of the Heads of Eight Metropolitan and Provincial Governments
Emphasizing that the enactment of a special act is essential for the substantive advancement of metropolitan and provincial administrative integration, Busan and Gyeongnam proposed a plan under which eight metropolitan and provincial governments would first conduct prior consultations on the specific provisions to be included in the special act, and then jointly submit the agreed proposal to the central government and the National Assembly.

They stated that such a structure, in which metropolitan and provincial governments proactively present directions for institutional reform and engage in consultations with the central government, could serve as a catalyst for moving away from a centrally controlled administrative system toward genuine decentralization.

Mayor Park Heong-joon stated, “Administrative integration should not be a strategy for local elections or a superficial merger, but rather a starting point for restructuring the national system and advancing balanced development led by regions.” He emphasized, “When the government makes a decisive commitment to relinquish central authority and legally and institutionally guarantee fiscal and administrative decentralization for integrated local governments, the timeline for a well-prepared administrative integration between Busan and Gyeongnam can be brought forward.”