[Report] Yeosu Citizens' Public Hearing: Outpouring of Criticism Over Local Economic Crisis Surpasses Administrative Integration Debate

Turning Point Needed Amid Decline of Core Industries Like Steel and Chemicals
Concerns Grow Over Collapse of Small Businesses and University Districts
Governor Kim Youngrok: "Initiating Major Transformation Including Energy Industry Development"

Jeollanam-do Governor Kim Youngrok is taking a commemorative photo at the Gwangju-Jeonnam Administrative Integration Public Hearing held at Yeosu Citizens' Hall on the 27th. Photo by Shim Jinseok

"Administrative integration is important, but right now, issues of livelihood are far more urgent."

The 'Gwangju-Jeonnam Administrative Integration Yeosu Citizens' Public Hearing,' held at Yeosu Citizens' Hall at 2:20 p.m. on January 27, became a venue where citizens voiced their desperate concerns about the struggling local economy in Yeosu, rather than discussing the justification for merging administrative districts.

Earlier that morning, a plan was finalized to name the new integrated municipality 'Jeonnam-Gwangju Special City' and to utilize three locations-Gwangju, Muan, and the eastern region-equally for the main government offices, rather than concentrating them in a single area. With this, much of the previous controversy over the location of the main office had been resolved. As a result, the discussion at the hearing focused less on the pros and cons of integration and more on the stark reality of Yeosu, which is facing industrial decline and a survival crisis.

This was a markedly different atmosphere compared to the public hearing held the previous day in Muan, where discussions had centered on the main office location issue.

Jeonnam Governor Kim Youngrok is greeting citizens before conducting a Q&A session related to administrative integration. Photo by Shim Jinseok

The Yeosu region is experiencing a rapid decline in the profitability of its petroleum, steel, and chemical industries due to global market changes, oversupply, weakening demand, and aggressive low-cost competition from countries like China. This has resulted in simultaneous reductions in production, job losses, and a downturn in the local commercial sector, pushing the entire regional economy into a crisis. While there is consensus on the need for a fundamental industrial restructuring and diversification, the lack of practical solutions is heightening anxiety among citizens.

Moreover, Yeosu underwent the so-called 'Three Yeo Integration' in 1998, merging Yeosu City, Yeocheon City, and Yeocheon County. Having experienced issues of marginalization firsthand, the region has voiced various concerns about the current administrative integration.

Kang Deokhwan, a Yeosu citizen attending the hearing, emphasized, "As administrative integration moves forward, the role of the eastern Jeonnam region, especially Yeosu, and the major projects that have been pursued so far must be fully reflected. As Yeosu is a key hub for the national industrial complex, port, energy industry, and marine tourism in eastern Jeonnam, it is essential to ensure that policies and budgets are not cut off after integration."

The desperate situation of self-employed business owners was also evident at the hearing.

Jang Hoil, who runs a small business in Hanryeodong, Yeosu, said, "Due to the economic downturn, my store's sales have dropped to about one-third of what they were, and the vacancy rate in nearby buildings has reached 40 percent. Survival is more important than the name of the integrated municipality or the location of the main office."

He added, "The government’s proposed 20 trillion won integration incentive should be concentrated on the Yeosu Industrial Complex, leading to investments in R&D, fostering the hydrogen and materials/components industries, and the construction of LNG power plants."

Mr. Wonbin Cha, who identified himself as the president of the regional development club at Chonnam National University Yeosu Campus, is explaining the issues of marginalization at the Yeosu Campus along with the collapse of the local commercial district. Photo by Jinseok Shim

Concerns were also raised about the marginalization of Chonnam National University Yeosu Campus and the hollowing out of the university district.

Wonbin Cha, who introduced himself as the president of the regional development club at Chonnam National University Yeosu Campus, criticized, "After the merger of Chonnam National University and Yeosu University, the Yeosu Campus has declined, with the student population dropping from about 5,000 to around 2,000. The university commercial district has collapsed, yet Jeollanam-do has shown no response over the past eight years."

Cha also pointed out, "While Mokpo National University and Suncheon National University are pursuing the establishment of medical schools and hospitals, Yeosu Campus is effectively being absorbed and phased out. The issue of revitalizing the Yeosu Campus needs to be prioritized over discussions of integration."

In response, Jeollanam-do Governor Kim Youngrok expressed his intention to use administrative integration as an opportunity to restore regional competitiveness. He stated, "If the special city designation is finalized, the budgets of all cities, counties, and districts will increase. We will use the forthcoming 20 trillion won in funding to transform Yeosu’s core petrochemical industry into a high value-added sector."

He continued, "Through new and renewable energy industries such as ESS, we will reduce electricity rates and, in the long term, establish a system to directly supply affordable electricity to industrial complexes in the eastern region. We are also considering ways to link the expansion of renewable energy with the hydrogen industry."

Additionally, he said, "We are planning a project worth about 5 trillion won to build a hydrogen pipeline network centered on the Yeosu Industrial Complex and the Gwangyang Bay Area, creating a 'hydrogen port terminal.' The university RISE project will also be integrated and coordinated within the special city framework."

Meanwhile, Governor Kim arrived at the hearing about an hour late due to attending the '4th Gwangju-Jeonnam Special Act Review Meeting of City and Provincial Governors and National Assembly Members' held at the National Assembly Members’ Office Building in Seoul that morning. Nevertheless, as it was the first public hearing held in the eastern Jeonnam region, including Yeosu, Suncheon, and Gwangyang, more than 600 citizens and stakeholders attended, demonstrating significant interest in administrative integration.