What Is a Special City... The Mixed Fortunes of Hwaseong and Seongnam

Hwaseong Approaches 1 Million Population Mark per Designation Criteria... Seongnam Shows Contrasting Population Decline
Expansion of Welfare Benefits, Building Permits, and Partial Authority Delegated from Province to Special City

The fortunes of Hwaseong City and Seongnam City in Gyeonggi Province, leading candidates for special city status in the Seoul metropolitan area, are diverging. Hwaseong City is likely to surpass the special city population criterion of 1 million within the year due to steady population inflow, whereas Seongnam City is facing difficulties meeting the criterion as its population is actually decreasing.

Hwaseong Approaching 1 Million Population

According to local governments on the 14th, Hwaseong City has entered the final countdown to surpassing a population of 1 million within the year. The population of Hwaseong City, which was 914,500 at the beginning of the year, steadily increased to 937,200 by the end of September. Recent city self-assessments indicate the population has exceeded 997,000, and if new apartment move-ins proceed without issues, it is widely expected that the population will surpass 1 million by the end of this month or early next month.

The primary driver of Hwaseong City's population growth is undoubtedly Dongtan New Town. Nearly half of the total population, close to 500,000, is concentrated in Dongtan 1 and 2 New Towns. Additionally, Namyang New Town, where the city hall is located, is also considered a key contributor to population growth.

Major companies such as Samsung Electronics Hwaseong Campus, Hyundai Motor Namyang Research Institute, KG Mobility, and the Hyangnam Pharmaceutical Complex support Hwaseong City's growth. In particular, Hwaseong is recognized for its solid industrial base, with over 1,000 semiconductor-related companies established in the city.

Seongnam’s Population Decline Due to Development Projects

In contrast, Seongnam City is experiencing the opposite trend. After peaking at 924,100 in January this year, the population has been declining, dropping to 917,400 in September. At this rate, surpassing 1 million within the year is practically impossible.

The decisive factor in Seongnam’s population decline is urban redevelopment and reconstruction projects actively underway in the old city areas. As existing housing is demolished for these projects, a significant number of residents have moved to other regions such as Gwangju and Yongin. The city also attributes population outflow to residents relocating due to remodeling of aging apartments in Bundang New Town. A Seongnam city official stated, "Many of the migrants are low-income residents, so they have no choice but to move to areas with relatively cheaper housing."

However, since this population outflow is considered a temporary phenomenon, there is a possibility that population inflow will resume once the development projects are completed.

Changwon, the Only Special City in the Provinces, Faces Shrinking Population

The problem lies in the provinces. Currently, four cities are designated as special cities: Suwon, Yongin, and Goyang in Gyeonggi Province, and Changwon in South Gyeongsang Province. Changwon is the only provincial city with this status. However, Changwon’s population trend is challenging. With a declining birthrate and population outflow combined, Changwon’s population has been steadily decreasing.

Changwon’s population, which was 1,084,000 in 2013, has continuously declined to 1,021,000 last year. This year, the downward trend continues, with the population estimated at around 1,012,000 as of the end of September. Although not immediate, experts predict that if this trend does not reverse, the 1 million population threshold will eventually be breached.

Excluding Changwon, provincial cities with populations exceeding 500,000 include Cheongju in North Chungcheong Province, Cheonan in South Chungcheong Province, Jeonju in North Jeolla Province, Pohang in North Gyeongsang Province, and Gimhae in South Gyeongsang Province. Even these cities are far from qualifying for special city status and are currently more concerned about rapid population outflow.

The Biggest Change for Special Cities is 'Welfare'

Panoramic view of Dongtan New Town, Hwaseong, Gyeonggi-do. [Photo provided by Hwaseong City]

A city is automatically designated as a special city if its population exceeds 1 million for two consecutive years by the end of the year. Conversely, if a designated special city’s population falls below 1 million for two consecutive years, it loses its special city status.

Therefore, even if Hwaseong City surpasses 1 million population this year, it will not be immediately designated as a special city. However, if it maintains a population of 1 million until next year, it will gain special city status starting in 2025.

Benefits associated with special city designation are also a point of interest. Currently, there is no separate special law for special cities within the legal framework. Instead, benefits are stipulated in individual laws related to special city designation.

The most noticeable change upon designation as a special city is in the welfare sector. The standard for calculating the basic property amount for social welfare benefits is raised to the level of metropolitan cities. This means the number of social welfare benefit recipients will increase. Representative examples include basic pensions, disability pensions, and national basic livelihood security beneficiaries. Housing benefit zones are also adjusted upward. In Changwon’s case, special city designation changed the housing benefit zone from level 4 (small and medium-sized cities) to level 3. However, in Gyeonggi Province, even if designated as a special city, the standard does not change from level 2 to level 1.

Municipal autonomy is also expanded. The Enforcement Decree of the Local Autonomy Act specifies eight provincial government tasks that special cities can handle directly. Specifically, these include ▲building permits for buildings under 51 floors or with a total floor area under 200,000㎡ ▲issuance of regional development bonds under the Local Public Enterprises Act ▲establishment and registration of local research institutes ▲designation of housing development districts (requires prior consultation with the provincial governor) ▲requests for changes to management plans regarding designation and cancellation of development-restricted areas (requires consultation with the provincial governor) ▲submission of farmland conversion permit applications ▲handling personnel matters such as grade 5 or lower positions within the authorized quota by institution ▲and industrial complex permits.

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