Gov't offers up to 20 tln won in assistance to regions that merge

▲ Prime Minister Kim Min-seok (C) gives a press briefing on the government's plans to support regional integration at the government complex in Seoul on Jan. 16, 2026. (Yonhap)

govt-city merger

Gov't offers up to 20 tln won in assistance to regions that merge

By Lee Haye-ah

SEOUL, Jan. 16 (Yonhap) -- The government offered Friday to provide up to 20 trillion won (US$13.6 billion) in assistance to cities and provinces that merge in line with the Lee Jae Myung administration's push for regional development.

The announcement by Prime Minister Kim Min-seok came as the local governments of Gwangju and South Jeolla Province are eyeing a merger, along with those of Daejeon and South Chungcheong Province, in a move that would reshape the upcoming local elections in June.

Kim said during a press briefing that the government will offer up to 5 trillion won annually, and up to 20 trillion won over four years, to each so-called integrated special city.

The integrated cities will also be given a status equivalent to that of the Seoul metropolitan government, such as by increasing the number of deputy chiefs to four and raising their rank to the vice ministerial level.

"Local governments that merge will be given clear incentives and a matching level of autonomy and responsibility," Kim said.

"Balanced regional development is not a policy that is considerate of the regions but a survival strategy for a sustainable future," he added.

Under the government plan, integrated cities will be favored for the next phase of the relocation of public institutions in 2027.

Companies that relocate to the merged regions would also receive various subsidies, rent reductions and tax exemptions.

Kim said the government will form a task force dedicated to financially supporting the integrations and promptly devise detailed measures while consulting closely with the National Assembly.

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