The newly proposed administrative integration law in South Korea faces criticism for lacking provisions on financial and authority devolution necessary for true local autonomy.
On December 12, a special bill for administrative integration passed the legislative review of the National Assembly's Administrative Safety Committee and is set for a plenary session review on the 24th. Throughout the committee's examination process, the key provisions of three special bills aimed at establishing integrated special cities in Chungnam-Daejeon, Jeonnam-Gwangju, and Daegu-Gyeongbuk were largely homogenized, with minor differences in subsidiary exemptions but a concerning absence of crucial clauses on financial and authority devolution. The bills outline regional integration goals, such as transforming Chungnam-Daejeon into a center of economic, science, and defense, promoting advanced industries and agriculture in Jeonnam-Gwangju, and creating a new economic zone through administrative regulation innovation in Daegu-Gyeongbuk.
Local governments in the three targeted areas are expressing differing political interests ahead of local elections, yet there is a general consensus on the inadequacies of the proposed integration law from the perspective of local autonomy. For effective decentralization and regional development, transferring financial powers and responsibilities from the central government to local authorities is essential, a point emphasized by the previous administration's plan to shift the national tax composition towards a 70-30 ratio favoring local taxes. Currently, the share of local transfer taxes from national taxes is merely 19.24%, which is critical for local governments managing their budgets.
However, the deadline set by the administration for the launch of integration before local elections has impeded necessary discussions on key decentralization issues. The administration's pledge to allocate 5 trillion won annually for four years as assistance has been labeled as a mere Band-Aid for the shortcomings of the special bill. With President Yoon emphasizing the urgency of integration, stating that failure to act now would make it impossible later, the focus remains on whether real local autonomy can be achieved under these circumstances.
