[Asia Economy (Suwon) = Reporter Lee Young-gyu] As the possibility of 10 out of 31 cities and counties in Gyeonggi-do being designated as 'Special Cities' increases, opposition movements are spreading mainly in areas excluded from the Special City designation.
The Ministry of the Interior and Safety previously announced the legislative notice of the 'Local Autonomy Act Amendment Bill' on May 29, which includes designating 16 major cities nationwide with a population of over 500,000 as Special Cities. If this amendment passes the National Assembly, 10 places in the province?Suwon, Goyang, Yongin, Seongnam, Hwaseong, Bucheon, Namyangju, Ansan, Anyang, and Pyeongtaek?will be designated as Special Cities. This means that one out of every three local governments in the province will be 'upgraded' to Special City status.
Consequently, more than 20 local governments in the province excluded from these Special Cities are concerned that the government's push for Special Cities will deepen the concentration of large cities within metropolitan units and exacerbate national land balanced development.
They also argue that the deepening financial disparities between local governments will undermine local autonomy and further run counter to the increasing demand for metropolitan administration. In particular, they point out that Special Cities could shake the foundation of metropolitan local governments and raise additional cost issues such as relocating government offices after designation.
◆Criticism of the Inappropriateness of the 'Special City' Name
Ahn Byung-yong, chairman of the Gyeonggi-do Council and current mayor of Uijeongbu, who declared his candidacy for the president of the National Association of City, County, and District Mayors, criticized, "The Local Autonomy Act Amendment Bill contains no provisions for promoting or improving the autonomy of cities, counties, and districts, and seems solely focused on designating Special Cities." He questioned whether the 210 heads of local governments nationwide who are not designated as Special Cities would agree.
He especially said, "By naming it 'Special City,' it divides areas into Special Cities and non-Special Cities, stigmatizing residents of underprivileged areas as non-Special City residents." He warned, "Changing metropolitan taxes such as acquisition tax and registration tax to Special City resources will improve the finances of Special Cities, but the resources redistributed to financially weak cities and counties are expected to decrease, potentially causing conflicts between Special Cities, metropolitan cities, and marginalized cities, counties, and districts."
Chairman Ahn further argued, "Among local governments nationwide, 68, or 30%, are at risk of extinction, and 46 have a financial independence rate below 10%." He insisted, "It is more appropriate to designate these underprivileged areas as Special Regions and grant them special financial status."
He explained that the term 'Special City,' which contrasts with ordinary cities and counties, does not align with the horizontal concept of local autonomy and causes discord among local governments. Therefore, he suggests applying the concept of 'special' to regions that require special consideration rather than to large cities.
◆Concerns Over Waste of Public Funds and Administrative Leakage
Voices are also emerging worrying about costs such as relocating government offices due to Special City designation. Gyeonggi-do may face a situation where Suwon City, upon being designated a Special City, would have to move its government office even before moving into the new building currently under construction in Gwanggyo New Town.
Looking at past cases, Chungcheongnam-do relocated to Hongseong after Daejeon was promoted to a metropolitan city; Gyeongsangbuk-do moved its office to Andong after Daegu Metropolitan City became independent; and Jeollanam-do relocated its office to Muan after Gwangju Metropolitan City became independent.
There are critical views that the current introduction of Special Cities is merely an administrative system separation based on population criteria, serving only the gerrymandering of public officials and politicians without practical benefits to the public. It is also analyzed that creating Special Cities will reduce their own resources and cause metropolitan provinces to become 'hollowed out,' intensifying regional conflicts and imbalances.
Chairman Ahn expressed concern, saying, "In a small country like South Korea in terms of area and population, subdividing administrative agencies is not decentralization but division of local governments," warning that dividing local governments could cause national division and confusion.
◆Controversy Over Hindering Balanced National Development
A local government head of City A in the province pointed out, "The population size, local taxes, and GRDP (Gross Regional Domestic Product) share of major large cities in Gyeonggi-do account for more than 60% of the total," adding, "If designated as Special Cities, this concentration phenomenon will inevitably worsen."
In fact, as of last year, the population of 10 areas with over 500,000 people among the 31 cities and counties in Gyeonggi-do was 8.38 million, accounting for 63% of the province's total population of 12.7 million. Local taxes accounted for 14.4892 trillion won, or 57%, of the total 25.3524 trillion won, and acquisition tax accounted for 4.8721 trillion won, or 62%, of the total 7.8159 trillion won.
Especially regarding GRDP, the imbalance between large and small cities is more severe. As of 2016, the GRDP of Gyeonggi-do was 344.7816 trillion won, with the 10 local governments expected to be included in the Special Cities accounting for 233.8506 trillion won, a staggering 68%.
◆Widening Gap Between Rich and Poor Among Local Governments
Concerns are also rising about the widening financial gap between Special Cities and general cities.
An official from a local government said, "Large cities with populations over 500,000 have good financial conditions and have mostly completed development projects such as SOC, so they spend a lot on welfare, culture, and lifestyle sports. However, cities with populations under 500,000 have a high proportion of SOC investment, making them relatively disadvantaged in budget investment for resident welfare." He worried, "In this situation, if financial and tax reforms occur, cities over 500,000 will become better places to live, while those under 500,000 will find it even harder to invest in SOC, accelerating the rich-get-richer, poor-get-poorer phenomenon."
In particular, if the current provincial tax is converted to a Special City tax without establishing a separate 'Special City tax,' the province's financial adjustment function will weaken compared to now, deepening regional financial disparities and resulting in a setback for local autonomy, according to some analyses.
Additionally, there are concerns that continued population concentration in large cities due to Special City designation could trigger new urban problems such as rising housing prices.
◆Contrary to Increasing Demand for Metropolitan Administration
Recently, major metropolitan local governments have been actively pursuing integration. Lee Yong-seop, mayor of Gwangju Metropolitan City, recently unconditionally proposed integration with Jeollanam-do. Discussions on integration between Daegu Metropolitan City and Gyeongsangbuk-do are also actively underway. Busan, Ulsan, and Gyeongnam are promoting the 'Southeast Mega City' concept.
Proponents of metropolitan administration argue that major countries worldwide are forming metropolitan areas to enhance global competitiveness and grow in size.
A local government head of City B explained, "As seen in the recent COVID-19 situation, boundaries between cities and provinces are being nullified, and situations requiring metropolitan responses will inevitably increase in the future." He added, "The recent active discussions on integrating metropolitan cities and provinces are not unrelated to this."
Gyeonggi-do also intends to strengthen metropolitan administration so that residents can receive the same services anywhere among the 31 cities and counties in the province.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
