Of Jeju's KRW 197.5 Billion in National Funding, KRW 168.3 Billion Is for Autonomous Driving; All-Out Effort to Secure National Assembly Approval

【Financial News | Jeju = Reporter Jeong Yong-bok】 Ahead of the National Assembly's review of the 2027 government budget proposal, Jeju Province asked the Democratic Party leadership to secure national funding for 10 projects worth KRW 197.49 billion. Of that amount, KRW 168.3 billion is earmarked for the development of a Jeju-style autonomous driving demonstration city. Jeju Province also requested support, as policy matters outside the budget, for the second relocation of public institutions to Jeju and for hosting the 2028 Group of 20 (G20) Summit in Jeju.
According to Jeju Special Self-Governing Province on the 30th, it held the 2026 Jeju Budget Policy Council meeting with the Democratic Party of Korea at the National Assembly that morning to discuss next year's national-funded projects and major institutional and policy issues.
The Budget Policy Council meeting is an opportunity for local governments to explain regional issues and necessary project funding to party leaders and the National Assembly while the legislature reviews the budget proposal submitted by the government.
The Democratic Party delegation included party leader Kim Min-seok, floor leader Han Byung-do, Policy Committee Chair Kwon Chil-seung, Lee Kwang-jae, chair of the National Assembly's Special Committee on Budget and Accounts, Yeom Tae-yeong, chair of the Good Local Government Committee, and Kim Tae-seon, chief of the party leader's office.
Jeju was represented by Governor Wi Seong-gon, Moon Dae-rim, chair of the Democratic Party's Jeju Provincial Party, National Assembly members Kim Han-gyu and Kim Seong-beom, and Song Young-houn, chair of the Jeju Provincial Council.
Jeju Province requested the inclusion of 10 national-funded projects in the national budget. The largest is the development of a Jeju-style autonomous driving demonstration city, for which it requested KRW 168.3 billion. That accounts for about 85% of the total amount requested.

Jeju Province plans to use its accumulated experience in autonomous driving demonstrations, along with the island's diverse driving environments—including urban areas, tourist destinations and mid-mountain regions—to develop Jeju into a national testing hub for autonomous driving technology.
It also requested KRW 10 billion for the regional pilot project for urban air mobility (UAM). The Jeju Resource Circulation Cluster project was allocated KRW 3.7 billion, while KRW 3.64 billion was requested to attract a global vacation remote-work hub center.
The requests also included budgets related to artificial intelligence and industrial transformation. Jeju Province proposed KRW 3.3 billion for a Jeju-area artificial intelligence transformation (AX) proof-of-concept project to demonstrate a data center powered by renewable energy, as well as KRW 2 billion to build a regionally specialized agricultural AX platform.
AX refers to artificial intelligence transformation, in which AI is applied to industries and work processes to change how production and operations are carried out. A proof of concept (PoC) is the stage in which a technology is first tested in a real-world environment before a large-scale project begins.
Jeju Province requested KRW 2.55 billion for a project that uses artificial intelligence to install closed-circuit television cameras and emergency bells in areas vulnerable to disasters and safety risks.
The province also requested KRW 3 billion to support the 22nd Jeju Forum for Peace and Prosperity, KRW 500 million to operate the K-Tourism Academy, and KRW 500 million to assess infrastructure expansion at Jeju International Airport and study ways to increase the supply of airline seats.

Jeju Province separately presented 10 institutional and policy issues that are difficult to resolve through the budget alone. Key proposals included reflecting wind power projects in Chuja and floating offshore wind power in the 12th Basic Plan for Electricity Supply and Demand, attracting the 2028 G20 Summit to Jeju, and including Jeju in the second round of public institution relocations.
The province also called for guaranteeing residents' right to air travel, expanding noise-mitigation measures at Jeju Airport, and converting the Port of Jeju into a nationally managed port to facilitate development of the New Jeju Port.
Jeju Province requested support for establishing Jeju as a global artificial intelligence hub, selecting Jeju as a pilot region ahead of the full nationwide implementation of the autonomous police system, and passing an amendment to the Jeju 4·3 Special Act.
The list of pending issues also included including clean hydrogen in the scope of domestic production tax credits and expanding the types of crops covered by agricultural disaster insurance.
Governor Wi Seong-gon said, "Please join forces during the National Assembly's budget review so that projects combining renewable energy and artificial intelligence can be demonstrated in Jeju and expanded nationwide." He added, "Cooperation is also needed on institutional and policy issues, such as relocating public institutions and attracting the G20 Summit, that must be addressed through government systems and policies."
Song Young-houn, chair of the Jeju Provincial Council, raised the issue of local government finances separately. Song asked, "Please establish a legal basis to guarantee the stability and autonomy of local finances during the introduction of the Future Response Fund and to offset fluctuations in local allocation taxes resulting from a decline in national tax revenue." He also proposed expanding the general-purpose funding of the Local Future Growth Support Fund and allocating at least 3% of it to Jeju.

Democratic Party leaders also stated their positions on individual issues. Party leader Kim Min-seok said, "We share broad common ground on the right to mobility, Jeju as a climate-economy capital, and the relocation of public institutions, including the Korea Racing Authority (KRA)." He added, "We will examine the related issues."
Floor Leader Han Byung-do said, "We will support industrial models that combine renewable energy and artificial intelligence, including the Jeju-area AX demonstration project."
In a closed-door discussion, Kim also said the party would consider ways for Jeju to maintain an independent status within the government's national balanced-growth strategy. He said discussions would continue on the amendment to the Jeju 4·3 Special Act, the relocation of public institutions, the global artificial intelligence hub and the bid to host the G20 Summit.
Jeju Province and the Democratic Party agreed to activate a standing consultation channel among the Democratic Party's Policy Committee, the National Assembly's Special Committee on Budget and Accounts, and the Planning and Coordination Office of Jeju Province to connect the results of the meeting to the National Assembly's actual budget review.
For Jeju, the immediate points to watch are how much of the KRW 197.49 billion requested is actually included during the National Assembly's budget review and what form the KRW 168.3 billion autonomous driving demonstration city project takes in the budget. Outside the budget, the remaining tasks are to determine whether the relocation of public institutions, the bid to host the G20 Summit and the inclusion of offshore wind power in the national plan will be translated into concrete government policies.


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