Presidential Committee for the Era of Local Autonomy chair: “30 trillion won in cut grants must be restored to normal levels ... Local leaders must make decisions on administrative integration talks”

[Financial News] Park Jung-hyun, chair of the Presidential Committee for the Era of Local Autonomy, said on the 3rd that he would convey to President Lee Jae Myung regional calls for securing about 30 trillion won in Local Grant Tax as part of the government’s planned creation of the Future Fund. The aim is to take into account the financial difficulties local governments have faced after grant cuts over the past three years. He also urged the heads of metropolitan and provincial governments to make political decisions amid delays in discussions on administrative integration in areas including Daejeon and South Chungcheong Province.
At a press briefing near the Sejong Government Complex that day, Park said, “The grants cut over the past three years should be fully replenished and restored to normal levels,” adding, “There are calls for roughly 30 trillion won to be redirected to the Local Grant Tax.” He said he would compile local governments’ requests and report them directly to the president, stressing, “As chair of the Presidential Committee for the Era of Local Autonomy, I must convey the voices of local communities without filtering them.”
He said cuts to the Local Grant Tax and the real estate grant tax from 2023 to 2025 totaled about 15.5 trillion won. When he was serving as mayor of Buyeo County, the county alone saw its grants fall by about 180 billion won over three years, making it difficult even to properly carry out projects that required local funds to supplement national funding, he said.
However, he expressed support for the purpose of establishing the Future Fund. Park said support and investment for companies relocating to local areas were needed to overcome the capital region’s dominance as a single center and revive regional economies. He added, “I hope the president will take a close look at the difficulties caused by local finances shrinking over the past three years.”
On the additional relocation of public institutions to local areas, which is scheduled to be announced in November, he said, “Once the Ministry of Land, Infrastructure and Transport (MOLIT) has worked things out to some extent, the Presidential Committee for the Era of Local Autonomy must review and coordinate the plan and make a final decision before ministers of each ministry can issue official notices.” He added, “I think those steps may be carried out quickly in November.” He continued, “If the relocation of public institutions is completed this time, I think it could be the final phase in practically moving all public institutions remaining in the capital region to other parts of the country.”
As for how the relocations should be carried out, he emphasized moving institutions together in groups linked to regional industries, universities and research institutes. Park said, “We are discussing this with MOLIT on the understanding that grouping related institutions and relocating them together would be more effective,” adding, “The relocation of public institutions is also linked to the regional preference index.” He also mentioned the possibility of placing more institutions or larger ones in areas farther from Seoul, but said specific allocation plans had not been finalized.
He stressed that discussions on administrative integration in areas such as Daegu and North Gyeongsang Province, Daejeon and South Chungcheong Province, and Busan, Ulsan and South Gyeongsang Province should continue. He expressed particular disappointment over delays in efforts to pursue integration in the Chungcheong region.
Referring to North Gyeongsang Province Governor Lee Cheol-woo’s position that integration should be pursued with the 2028 general election as the target, Park said, “I think that’s a good idea,” adding, “If we’re going to do it anyway, we should do it quickly so we can get more support and avoid wasting time.” He continued, “It’s important to obtain the consent of local residents, but politicians also need to make decisions,” urging the heads of metropolitan and provincial governments to act. He said, “It comes down to this: After going through a difficult election to get elected, will you stop after two years or wait until you’ve completed all four years to think about it?” He added, “It’s all a lie when people who say they want to be leaders make no concessions themselves and only insist on their own positions.”

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