Expanded Autonomy and Development of Differentiated Growth Plans Possible

On the 7th, the government confirmed and announced 100 major national policy tasks according to 20 national strategies. Among these, administrative system restructuring for local autonomy and regional economic revitalization was included.

Given that the government has declared its intention to restructure the local administrative system by selecting it as a national policy task, what changes are expected from administrative system restructuring centered on administrative district regionalization?

● 'Low-Cost, High-Efficiency' Administration Implementation

The government, political circles, and major cities nationwide with populations of 500,000 or more are uniformly emphasizing the provision of 'low-cost, high-efficiency' administrative services by restructuring the current administrative system, which exhibits 'high-cost, low-efficiency.'

The current three-tier structure of the government-metropolitan cities/provinces-cities/counties/districts requires time and costs in various administrative procedures and is excessively restricting local governments' local autonomy rights.

In relation, on the 7th, the National Conference of Major City Mayors held a meeting with national assembly members from the relevant districts and requested amendments to laws for special provisions for major cities with populations of 500,000 or more.

The laws for which the Conference of Major City Mayors requested amendments from assembly members total 57 bills, with related affairs reaching 75 matters including administrative organization, personnel, local finance, and urban planning and development.

The major cities with populations of 500,000 or more comprising the conference—such as Suwon, Seongnam, Yongin, and Bucheon—argue that while some cities have external populations exceeding 1 million or approaching it (Suwon, Seongnam, Goyang, etc.), they are classified as basic local governments and face restrictions on their autonomy rights.

● What Effects Are Expected from Regionalization?

If regionalization is implemented, administrative and economic effects can be achieved, such as cost reduction through adjustments to administrative organizations and personnel, and flexible response to administrative demands.

Above all, it is anticipated that investing the provincial tax portion of local tax revenue directly in regions will contribute to infrastructure construction such as social overhead capital through fiscal expansion and improvement of residents' quality of life.

In relation, Mayor Kim Yong-seo stated, "Among the 8.237 trillion won local tax collection target for Suwon this year, provincial taxes account for 3.924 trillion won, representing 47.6%."

This represents 26.6% of this year's budget of 14.765 trillion won. However, the scale of local transfer taxes or fiscal transfer funds coming down to Suwon from provincial taxes does not reach even half of the provincial tax collection amount.

Additionally, it becomes possible to exercise various urban planning and development authorities currently held by the provincial governor, such as housing site development projects, prior approval for building permits of 100,000 square meters scale, and designation of urban redevelopment promotion districts.

In other words, by having an integrated regional local government directly pursue large-scale housing site development projects such as the currently ongoing Gwanggyo New City, development profits generated can be directly returned to the region.

Beyond this, effects are anticipated including resolving conflicts between local residents and municipalities arising from the mismatch between actual living and economic zones and administrative districts, promoting balanced development, and preventing population concentration in the Seoul metropolitan area.

There are also advantages in preventing duplicate investment in environmental facilities called 'nuisance facilities' such as crematoria and incinerators, and blocking factors that generate civil complaints.

● Regionalization Model=Jeju Special Self-Governing Province?

While concrete regionalization systems following local administrative restructuring have yet to be announced, observations suggest that Jeju Special Self-Governing Province, launched in 2006, will be the closest model.
Launched on July 1, 2006, Jeju Special Self-Governing Province was reorganized into a single regional autonomous entity consisting of two integrated administrative cities: Jeju City and Seogwipo City, after consolidation of Jeju City and Bukjeju County with Seogwipo City and Namjeju County, respectively.

The autonomous province expanded its autonomy rights, excluding state-specific affairs such as foreign affairs and national defense, enabling the exercise of legislative authority, decentralization and management of local finance, guarantee of autonomy, and implementation of various regulatory liberalization.

In addition, educational autonomy was expanded, including the introduction of autonomous police and direct election of education superintendents.

In particular, under the regionalization structure, it became possible to establish and implement differentiated growth plans reflecting the characteristics of each local government based on regional growth strategies by dividing local governments by region.

In the case of Jeju Special Self-Governing Province, it is promoting core industry development in tourism, education, medical, and high-tech industries.

A Suwon city official stated, "If regionalization occurs, the model of Jeju Special Self-Governing Province could become the most realistic alternative," and added, "Suwon could also establish regional growth strategies in high-tech industries, tourism, and others."