[Feature] Gwangju and Jeonnam Become a 3.2 Million-Population Megacity... Challenging the Seoul Metropolitan Monopoly

GRDP of 150 Trillion Won and Annual Budget of 25 Trillion Won
Industrial Restructuring, Financial Expansion, and Overcoming the Risk of Regional Decline
Expansion of Education and Medical Infrastructure... Strengthening Competitiveness
Kim Youngrok: "From a Neglected Periphery to a Future-Oriented Leading City"

On the 1st, a special law for the establishment of the Jeonnam-Gwangju Integrated Special City was passed in the National Assembly. Photo by Yonhap News Agency

With the passage of the Special Act for the establishment of the Jeonnam-Gwangju Integrated Special City at the National Assembly on March 1, it is being evaluated as a turning point for a "super-regional leap forward" in the Honam region. As the official launch of this megacity, with a population of 3.2 million, a gross regional domestic product (GRDP) of 150 trillion won, and an annual budget of approximately 25 trillion won, is scheduled for July 1, positive ripple effects are expected in terms of industry, finance, and balanced regional development.

◇ Consolidation of Industrial Competitiveness... Realizing the "Economies of Scale"

The most significant effect of the integration is the enhancement of industrial competitiveness. By combining Gwangju's artificial intelligence (AI), future mobility, and research infrastructure with Jeonnam's renewable energy, agricultural and marine resources, and available land, a foundation has been created to generate synergy.

In particular, the groundwork has been laid for realizing economies of scale. In practice, with the central government’s promised support of 5 trillion won, plus 7.7 trillion won from Gwangju and 11.7 trillion won from Jeonnam, there is a high possibility that the local government will be able to operate with a 25 trillion won budget. This would place the new megacity in the third or fourth position nationwide after Seoul and Gyeonggi Province.

Until now, individual cities and provinces have faced limitations in attracting large-scale investments or responding to national public projects. With this integration, administrative procedures and decision-making structures will be unified, making it easier to attract businesses, establish industrial complexes, and apply regulatory exemptions. In addition, by reducing administrative redundancy and designing integrated metropolitan transportation, environmental, and welfare policies, the efficiency of budget execution can be increased-another positive factor.

This is why analysts say that a foundation for a "unified Honam economic zone" capable of counterbalancing the Seoul metropolitan area has now been established.

Jeollanam-do Governor Youngrok Kim is posing for a commemorative photo with Donggu Mayor Taek Im and other attendees at the "Jeonnam-Gwangju Administrative Integration Gwangju Autonomous District Invitation Town Hall Meeting (Donggu)" held at Gwangju Donggu Office on the 27th of last month.

◇ Responding to the Risk of Regional Decline... A New Phase in Balanced Development

Gwangju and Jeonnam face common challenges of an aging population and population decline. One notable example is that the population of Gwangju fell below 1.4 million last year, due to the outflow of younger generations to the Seoul metropolitan area. The integration is drawing attention as it restructures the region into a single area with a population of 3.2 million, providing a foundation to attract external investment and draw in young people.

If the construction of a super-regional transportation network, relocation of public institutions, and expansion of educational and medical infrastructure proceed in parallel, there are expectations for tangible effects in addressing the risk of regional extinction. The ability to design metropolitan-level policies encompassing both rural and urban areas is also expected to facilitate more seamless interregional development.

Given that President Lee Jaemyung has presented the super-regional model as a national balanced development strategy, the integrated special city could become a leading example of strengthening local competitiveness with central government support.

Kim Youngrok, Governor of Jeollanam-do, stated on his Facebook page on this day, "The Jeonnam-Gwangju Special Act, the first of its kind in Korea, passed the plenary session today," adding, "From now on, we will move from the periphery to the center, opening up a future of great revival with a population exceeding 3.2 million and heading toward 4 million. We will emerge as a region of hope, not a neglected peripheral area in the southern part of the Korean Peninsula, but as a future-oriented leading city spearheading advanced industries such as semiconductors, AI, energy, and robotics," expressing his high expectations.

This content was produced with the assistance of AI translation services.