Local leaders from the People Power Party have launched an economic alliance in the Busan, Ulsan, and Gyeongnam region, but its sustainability post-elections is questioned due to insufficient resources and lack of legal status.
In response to rising centralization in the metropolitan area, local leaders from the People Power Party have established the "Busan-Ulsan-Gyeongnam Super-Regional Economic Alliance Promotion Headquarters." The launch is seen as a strategic move prior to the local elections, aiming to counterbalance the influence of the Seoul metropolitan area. Key figures from the three regions participated in the initiation, announcing plans to develop joint value chains in vital industries such as shipbuilding, defense, and semiconductors.
However, reports indicate that this newly formed Promotion Headquarters might face significant challenges in terms of resources and sustainability. Compared to the formerly established "Busan-Ulsan-Gyeongnam Special Union," which had more staff and budget, the Promotion Headquarters operates with fewer than 20% of the workforce and only one-eighth of the previous operational budget. Additionally, unlike the Special Union, which had a legal framework providing stability and guaranteed support from the central government, the Promotion Headquarters is a voluntary assembly and could disband easily if one member region withdraws.
The previous Special Union, created just months before the local elections in 2022 by Democratic Party-affiliated leaders, met its demise following an election sweep by the People Power Party candidates. This history raises concerns about the future of the Promotion Headquarters, especially if a Democratic candidate manages to win in the upcoming July elections. Observers have noted that a simple shift in electoral outcomes could potentially lead to a similar fate for the newly established economic alliance, reminiscent of the disbanded Special Union.
