[Issue] "Closing Fiscal Gaps" vs "Dismantling Gwangju"... Districts Face Controversy Over 'City Conversion'

Yang Bunam Proposes Special Law for 'City Conversion' on August 10

Outlook for Resolving Fiscal Imbalances Among Former Five Gwangju Districts

Civil Society Opposes "Dismantling a Single City and Rushed Implementation"

Following the launch of the Jeonnam Gwangju Integrated Special City, the legislative process to reorganize the five former autonomous districts of Gwangju (Dong, Seo, Nam, Buk, and Gwangsan Districts) into individual 'Dong Gwangju City', 'Seo Gwangju City', 'Nam Gwangju City', 'Buk Gwangju City', and 'Gwangsan City' is gaining momentum, intensifying the debate between supporters and opponents.

Panorama of Gwangju Government Complex in Jeonnam Gwangju Integrated Special City.

There are mixed reactions: some welcome it as a decisive institutional move to overcome severe fiscal discrimination, while others criticize it as a hasty legislative act dismantling the historical and symbolic value of Gwangju as a single metropolitan city. Concerns are also mounting that safeguards are needed to mitigate fiscal repercussions, such as the limited general allocation tax distribution structure and reduced main office revenue. Many stress that, instead of pushing the plan forward hastily, there must be a democratic deliberation process, including a resident referendum and public discussion.

"Addressing Fiscal Gaps with 22 Cities and Counties in Jeonnam"... District Mayors’ Council and Political Circles Move to Legislate 'City Conversion'

According to local political circles on August 14, Yang Bunam, Democratic Party lawmaker (Seo District, Jeonnam Gwangju), jointly sponsored a partial amendment to the "Special Act on the Establishment of the Jeonnam Gwangju Integrated Special City" on August 10, together with 11 colleagues.

The amendment calls for abolishing the current five autonomous districts and establishing five general urban cities, stipulating that installation costs will be supported by the central government and the Integrated Special City. Incumbent district chiefs and council members will succeed to mayoral and city council positions for their remaining term.

This legislative proposal was prompted by a request from the Gwangju District Mayors’ Council, citing the need to resolve the severe fiscal imbalance between the five districts and the 22 cities and counties of Jeonnam.

Currently, the five districts can only levy two types of municipal taxes, namely license and property taxes, and are excluded from direct allocation of government general grants, resulting in an average fiscal autonomy rate of just 28.5%. In contrast, Jeonnam’s cities and counties secure five tax sources and receive direct general government grants, resulting in an average fiscal autonomy rate exceeding 50%.

In practice, Buk District, with a population of 420,000, receives about 132.9 billion won in government subsidies, while Hwasun County, with just 60,000 residents, receives 314.9 billion won, illustrating the ongoing structural discrimination.

The Jeonnam Gwangju District Mayors’ Council welcomed the move, releasing a statement saying, "Rectifying the imbalance whereby residents' autonomy and fiscal base differ according to where they live is the completion of integration," and adding, "Enhancing fiscal authority will drastically improve resident-oriented administrative services."

"Dismantling a Single City and Rushed Implementation"... Civil Society: "Resident Referendum and Special City Status Should Be Considered"

On the other hand, there is strong backlash from civil society and academia. The Citizen Group for Gwangju City Revival visited the Gwangju Provincial office of the Democratic Party, demanding withdrawal of the bill.

Choi Youngtae, Professor Emeritus at Kyungnam University, argued, "There is no precedent anywhere in the world for splitting up a mega-city with a population over one million," and insisted, "Even if district chiefs are converted to appointed positions, a special city like Suwon should be considered, or at minimum, the decision should be made through a resident referendum."

Regional civil society organizations such as the Gwangju Civil Society Council and Chamyeo Jachi 21 also issued successive statements denouncing the hurried implementation. They argued, "The reorganization could result in administrative inefficiency in the Gwangju metropolitan area, while costs for public transportation, water supply and sewage, and waste management could outpace tax revenue growth," demanding, "Stop pushing through administrative restructuring without giving citizens a chance for public discussion, and proceed only after expert and citizen forums as well as a resident referendum."

In response, the Jeonnam Gwangju District Mayors’ Council stated, "Since the short name of the Integrated Special City remains 'Gwangju Special City' and, as with Tokyo where there is no Tokyo City, Gwangju’s status would continue to be recognized, concerns about a 'dismantling of Gwangju' are excessive."

Main Office Revenue Decreases and Shifts in City/County General Grants... 'Fiscal Safeguards' Are Essential

The financial repercussions of converting the five districts into cities—restructuring the entire Integrated Special City’s finances—are also an issue.

If the autonomous districts are upgraded to city status, four categories of revenue currently belonging to the metropolitan government would transfer to the basic administrative level, resulting in an estimated annual decrease of around 800 billion to 1 trillion won in revenue for the Integrated Special City main office. This could reduce the capacity for large infrastructure investments, such as urban railways and regional transportation networks.

Additionally, if the five Gwangju cities become newly eligible for general allocation grants within the fixed total available, the allocation for the existing 22 cities and counties in Jeonnam may be reduced.

An official from a local civil organization commented, "To ensure that the transition to city status does not cause resource losses for other areas, the special law must include provisions for separate funding such as an integrated support grant or a new balanced development account, and fiscal safeguards to maintain general grant distributions for Jeonnam’s cities and counties."

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