"Transferring 9 Trillion Won Annually Is the Starting Line for Decentralization... The Democratic Party Plan Is Only Halfway"
Calls for Complete Revision of the Special Act at the Town Hall on Administrative Integration of Daejeon and South Chungcheong Province
The debate over the administrative integration of South Chungcheong Province and Daejeon has erupted into a head-on clash over core issues.
Kim Taeheum, Governor of South Chungcheong Province, publicly demanded a complete revision of the special administrative integration bill for Daejeon and South Chungcheong Province proposed by the Democratic Party of Korea, saying, "There is no reason to pursue integration if the central government does not hand over finances and authority."
Governor Kim made it clear that "the minimum condition for local regions to grow on their own is the transfer of finances and authority."
On February 4, at the "Town Hall Meeting on Administrative Integration of Daejeon and South Chungcheong Province" held at the Cheonan Campus of Dankook University, Governor Kim said, "Human and material resources are being sucked into the Seoul metropolitan area, leaving local regions facing a crisis of population extinction," and added, "The reason we need to reorganize the Republic of Korea into 5 to 6 large metropolitan zones is to prevent the over-concentration of the capital area and achieve balanced national development."
He went on to say, "Local autonomy and decentralization are not slogans but institutions," stressing that "no form of integration can have substance if the state does not transfer the finances and authority it is tightly holding to local governments."
The criteria presented by Governor Kim are clear. Given that regional-led growth is impossible under the current 75-to-25 structure between national taxes and local taxes, he argued that it is necessary to permanently transfer 100% of capital gains tax generated within the region, 50% of corporate tax, and 5% of the total amount of value-added tax, thereby securing approximately 9 trillion won in additional resources every year.
However, Governor Kim criticized the special bill proposed by the Democratic Party of Korea, saying, "It only includes the partial transfer of capital gains tax and local allocation tax, so the additional resources secured amount to just 3.7 trillion won per year," and, "This falls far short of the 35% local finance ratio mentioned by President Lee Jae-myung."
Governor Kim also directly criticized the method of transferring authority. He said, "The proposal prepared by the province and Daejeon City includes mandatory provisions using the wording 'shall,' but the Democratic Party's proposal has been changed to discretionary provisions such as 'may' and 'may consult,'" adding, "With a bill like this, we cannot talk about decentralization."
He particularly pointed out, "Daejeon and South Chungcheong Province prepared the bill over a year and a half, going through procedures and collecting expert opinions," and added, "Gwangju and South Jeolla, Daegu and North Gyeongsang, and Busan and South Gyeongsang are also discussing administrative integration, but if you look at the content of the bills, only Daejeon and South Chungcheong Province are exceptionally weak."
He argued, "If we say Gwangju and South Jeolla are at 100, then Daejeon and South Chungcheong Province are not even at 50," and insisted, "Special provisions should be applied based on the same standards to all regions pursuing integration."
Governor Kim also drew a line on the issue of the integrated entity's name, saying, "The official name is 'Chungnam-Daejeon Integrated Metropolitan City,' and it is unacceptable that the abbreviation 'Daejeon Metropolitan City' is written into the bill," adding, "Considering the population size, historical context, and the identity of South Chungcheong Province, this is something I cannot agree to as governor."
Governor Kim said, "The purpose of administrative integration is to improve the quality of life of the people of Chungcheong and to create sustainable growth engines for Daejeon and South Chungcheong Province through the realization of decentralization and local autonomy," and added, "We will strongly press the National Assembly and the government to reflect these guarantees in the bill."
Emphasizing in particular the role of the president, he reiterated his request for a meeting, saying, "I would like to meet President Lee Jae-myung in person as soon as possible to discuss the direction and principles of administrative integration."
The provincial government plans to compile the opinions of residents and experts presented at the town hall meeting and use them as explanatory materials for future visits to the National Assembly and as reference materials for legislative response.
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