The Gwangju Employers Federation announced on January 15 that the economic benefits expected from the administrative integration of Gwangju and Jeonnam are significant.
In a press release issued on January 15, the Gwangju Employers Federation stated, "The core economic benefits of the Gwangju-Jeonnam administrative integration include the creation of a super-regional unified economic zone, which will drive investment attraction, job creation, and income growth, as well as industrial cluster synergy and improved fiscal and administrative efficiency." "If a 'super-regional economic bloc' with a population of 3.2 million and a GRDP of 150 trillion won is established, it is expected to serve as the largest negotiating power outside the Seoul metropolitan area, effectively counterbalancing the capital region's dominance."
The federation explained, "First, in terms of the unified economic zone, analyses suggest that integration would enable Gwangju and Jeonnam to compete on an equal footing with the Busan-Ulsan-Gyeongnam and Daegu-Gyeongbuk megacities." "If the two regions are merged into a single super-local government, their bargaining power in attracting large-scale national projects, relocating public institutions, and securing state-funded projects will be enhanced, which is expected to be highly advantageous for attracting investment and creating jobs in the region."
Additionally, the federation noted, "Regarding industrial synergy and investment attraction, a concrete vision has been presented for establishing a super-regional industrial cluster by combining Gwangju's strengths in artificial intelligence, mobility, and advanced manufacturing with Jeonnam's capabilities in semiconductors, energy, aerospace, and marine tourism." The federation evaluated that "by employing a package-type investment attraction strategy at the super-regional level, it will be possible to attract and allocate manufacturing bases such as large-scale corporate production lines, future vehicles, and white goods across the region, thereby advancing local industries and expanding high-quality employment opportunities."
In terms of infrastructure, transportation networks, and the local economy, expanding the metropolitan transportation network to connect the Gwangju, eastern, and western regions and creating a 'one-hour unified living zone' is expected to reduce logistics costs and improve both corporate productivity and residential conditions through the integration of industrial complexes, ports, airports, and energy infrastructure. The anticipated benefits most keenly felt by citizens and businesses include the establishment of an integrated transportation system, expanded social overhead capital, and increased convenience in daily life, which could lead to higher local consumption and increased sales in the service sector.
Furthermore, the federation added, "In terms of income, welfare, and jobs, public opinion surveys show that the most anticipated effects of integration are increased income, expanded welfare benefits, and greater job opportunities, indicating a clear perception of integration as an economic opportunity." "If fiscal autonomy and the transfer of authority are strengthened, the region will be able to implement customized welfare and employment policies designed locally, which is expected to have a positive impact on addressing population decline and preventing regional extinction."
Yang Jinseok, Chairman of the Gwangju Employers Federation, stated, "If Gwangju and Jeonnam become a single growth axis within the government's '5 Major Axes and 3 Special Zones' super-regional balanced development strategy, it could help ease the concentration in the Seoul metropolitan area and foster the Honam region as an independent growth hub." He added, "This goes beyond simply relocating industries; if asset formation and local capital accumulation are also supported, it will be linked to policy demands for long-term wealth accumulation and increased economic self-reliance."
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