[Inside Chodong] Thirty Years of Token Efforts... Now Is the Time for Local Decentralization

On July 3, 2023, the Local Decentralization Act and the National Balanced Development Act were integrated into a single special law. Although this law attracted little attention from the general public, it led to the creation of the "Local Era Committee," a large-scale policy deliberation and decision-making body directly under the President. This move was prompted by criticism that, despite the close relationship between local decentralization and balanced development, the implementation systems were fragmented, resulting in limitations in their coordination. This comes 30 years after the introduction of local autonomy.

Two years have passed since then, but nothing has changed. The Local Era Committee has held various policy councils and regional briefings on comprehensive plans for the local era, but it has failed to present solutions to the fundamental crises of low birth rates and local extinction. Achievements such as the introduction and designation of four major special zones?Opportunity Development Zones, Education Development Zones, Urban Convergence Zones, and Cultural Zones?have lost continuity with the launch of the new administration and have been overshadowed by the notion that "absolute support from the central government is necessary."

Now, the Local Era Committee is preparing to resume its activities. President Lee Jaemyung appointed Kim Kyungsoo, former Governor of South Gyeongsang Province, as the committee chair. Kim is known within his party as a leading advocate for balanced development. During his tenure as governor, he even called himself an "evangelist for megacities."

However, there are significant concerns. Considering that balanced development policies of previous administrations have remained mere slogans, a major transformation of the national spatial structure?such as relocating the administrative capital and establishing the "Five Core Regions and Three Special Autonomous Provinces" (5 major mega-regions and 3 special autonomous provinces) through ultra-wide-area cooperation?seems even more distant. There is also a lack of clear messages regarding substantial institutional reforms and concrete policy implementation directions. Even though balanced development was one of the top ten campaign pledges, the National Balanced Growth Committee within the National Policy Planning Committee, which renamed the Special Committee on Decentralization and Balanced Development, has not even been launched.

Nevertheless, in local regions that have waited decades for genuine decentralization, many say that now is the optimal time to move toward real local autonomy. Marking the 30th anniversary of local autonomy, it is highly likely that "revitalizing local regions" will become a major topic in next year’s local elections.

In particular, the proposal for constitutional revision toward local decentralization, raised by several presidential hopefuls in the last election, has not faded. This is why the Local Era Committee must seize this moment as an opportunity for constitutional reform on decentralization. The starting point is to grant local governments the power to legislate, administer, and organize independently, thereby enhancing their autonomous capabilities. As everything is currently carried out under central control, there is little that local governments can decide for themselves, resulting in repeated distrust among residents.

Fiscal authority adjustments must also accompany these changes. Compared to other advanced countries, the proportion of local taxes in South Korea is significantly low. As of 2023, the ratio of national to local taxes stands at about 7 to 3, which is the main reason it is difficult to pursue independent policies. Local governments must secure both revenue and expenditure authority to ensure a stable local tax base.

If the President’s determination and the committee chair's drive are guaranteed, a new path for local decentralization could open. President Lee has stated that strengthening local autonomy could become a cause of national division, but he has personally experienced the limitations of local administration as the mayor of Seongnam and governor of Gyeonggi Province. Having described the current administrative structure as a "Seoul metropolitan area-centric system," he must cooperate in transferring his own authority to local governments.

Kim, who has returned to public office as committee chair, must present practical measures to the public and engage in thorough discussions. Public attention should not be focused on Kim’s actions in next year’s local elections rather than on the outcomes produced by the Local Era Committee. More than half of the 130 cities, counties, and districts nationwide have already received "extinction warnings." The crisis of local extinction is accelerating. Only by addressing genuine decentralization from now on can we prevent not only the extinction of local regions but also the disappearance of the nation itself.