Jeonnam-Gwangju's First Integrated Budget Tops KRW 22 Trillion... Focuses on Semiconductors, AI and Livelihoods

Up KRW 1.2123 trillion year on year... Four strategies to foster advanced industries and promote balanced regional development
KRW 433 billion for basic income in rural and fishing communities... KRW 155.8 billion allocated for local gift certificates

Jeonnam-Gwangju Integrated Special City has drawn up its first integrated budget proposal, focusing on fostering advanced industries, promoting balanced regional development and stabilizing people's livelihoods.

Gwangju Special City said it had drawn up a budget proposal of KRW 22.0163 trillion for 2027 and would submit it to the city council on November 11.

The total is KRW 1.2123 trillion, or 5.8%, higher than this year's KRW 20.804 trillion. The general account amounts to KRW 18.0736 trillion, up KRW 1.3438 trillion, or 8.0%, from the previous year, while special accounts total KRW 2.6739 trillion, an increase of KRW 28.6 billion, or 1.1%.

Baek Seungju, vice mayor for balanced development of Jeonnam-Gwangju Integrated Special City, speaks at a press briefing on the “first integrated budget proposal for 2027” in the briefing room at the Muan government building on the 11th. Provided by Jeonnam-Gwangju Integrated Special City.

By contrast, funds total KRW 1.2688 trillion, down KRW 160.1 billion, or 11.2%.

The budget proposal centers on transforming the industrial structure to secure new growth engines for the region after integration and building a foundation for development across the four regions.

The plan also combines efforts to boost local consumption, stabilize rural and fishing community incomes, and support young people and welfare, aiming to promote economic growth while improving people's livelihoods.

To this end, the city has set four key strategies: fostering advanced industries such as semiconductors and artificial intelligence (AI); building future growth infrastructure across four regions; revitalizing the local circular economy; and realizing a basic society in the special city.

First, the city will expand investment in semiconductors and AI.

It has allocated KRW 37.5 billion to support companies investing in semiconductor back-end packaging and KRW 163.8 billion to develop an AX demonstration valley. The proposal includes KRW 8.3 billion to establish an AI and digital aging-industry demonstration research support center and KRW 5.5 billion to build a joint semiconductor research institute for the Honam region.

In the energy sector, the city has allocated KRW 10 billion to foster Korea Advanced Institute of Energy Technology, KRW 7 billion to develop hydrogen cities, and KRW 6.7 billion to build LPG pipeline networks. It will invest KRW 2.4 billion in establishing infrastructure for a fusion energy core technology demonstration center and KRW 2 billion in an integrated support program for renewable energy deployment.

The city will also expand the industrial base for future mobility and aerospace.

It has allocated KRW 3.9 billion to support functional safety testing for perception components for future mobility. The proposal also includes KRW 350 million for planning research on new AI mobility technologies and KRW 170 million to draw up a master plan for a future vehicle industry innovation cluster based on physical AI.

In the aerospace sector, the city has earmarked about KRW 2.6 billion to establish a launch vehicle technology commercialization center, about KRW 2.8 billion to build a safety monitoring system for a flight performance test site, and KRW 1 billion to support greater access to the defense industry.

The city will also invest in development strategies for four regions that reflect the characteristics of each area in the integrated special city.

It will spend KRW 4 billion on a master concept and feasibility reviews for building future growth infrastructure in each region.

The city has set development directions for the Gwangju region focused on culture and the arts, literature, and AI-powered creative work, and for the eastern region focused on sports, K-pop, and large-scale performances. It plans to foster future agriculture, forestry, K-food, and the wellness industry in the central-southern region, and renewable energy, international conferences, exhibitions, and tourism in the western region.

In its regional economy budget, the city has emphasized boosting consumption and securing incomes for rural and fishing communities.

It has allocated KRW 155.8 billion to support the issuance of local love gift certificates. Including city and county funding, the total comes to KRW 209.7 billion. Another KRW 67.4 billion has been allocated for public benefit payments to farmers and fishers.

The proposal includes KRW 3 billion for Jeonnam-Gwangju 365 Half-Price Travel to boost tourist spending and KRW 1.3 billion to operate 2027 as the Year of Visiting the Special City. The city will invest KRW 3.7 billion in fostering social solidarity economy enterprises and KRW 2.4 billion in a pilot work experience program in the social solidarity economy.

The city will continue supporting startups, allocating KRW 2.8 billion to operate a youth startup academy and KRW 2.9 billion for special guarantees and interest subsidies for young entrepreneurs.

In particular, KRW 433 billion has been allocated for a pilot basic income program for rural and fishing communities. The total project budget, including county funding, is KRW 640.1 billion.

About 669,000 residents across 16 counties are eligible for support. The seven counties eligible for national funding are scheduled to begin providing support in the first half of 2027, while the nine counties expanding the program with their own funds are scheduled to start in the second half.

The budget for agriculture, livestock, fisheries, and maritime affairs has increased by KRW 269.6 billion, or 12.7%, from the previous year.

The city will invest KRW 119.6 billion in drainage improvement projects and has allocated KRW 22.4 billion to subsidize crop insurance premiums and KRW 8.5 billion to develop smart agriculture promotion districts.

The proposal includes KRW 5.9 billion to establish a global business center for agricultural AX and KRW 5.2 billion to build an agricultural AX demonstration center.

In the maritime and fisheries sector, KRW 13.5 billion has been allocated to build local fishing ports and KRW 11.1 billion to subsidize passenger ferry fares for island residents. The city will invest KRW 4.6 billion in advanced eco-friendly aquaculture systems and KRW 4.3 billion in supporting the digitalization of seafood processing plants.

The budget proposal also includes projects to address population decline, help young people settle in the region, and provide welfare support.

The city has allocated KRW 151.7 billion for regional growth talent development (Anchor), KRW 35.9 billion for child-rearing support payments, and KRW 26.3 billion for youth rent assistance.

It will invest KRW 16.3 billion in integrated medical and long-term care services and has allocated KRW 8 billion to build Youth Dream 10,000-won Housing and KRW 7.7 billion for Youth Work Experience Dream.

In the culture and tourism sector, the city has allocated KRW 88.2 billion for the Southern Region's regional tourism development project and KRW 79.5 billion for the repair and maintenance of state-designated heritage sites.

The proposal includes KRW 10.9 billion to restore and promote the Mahan historical and cultural region globally and KRW 10.3 billion to build the Gwangju Representative Library. The city will invest KRW 8.6 billion in renovating venues for the 2028 National Sports Festival, KRW 5.8 billion in support for developing cultural cities, and KRW 4.4 billion to build a biennale exhibition hall.

Investment in social infrastructure, including transportation networks and disaster response, will also continue.

The city has allocated KRW 150.1 billion for local road improvements and KRW 116.6 billion for local river maintenance. The proposal includes KRW 113.1 billion for construction of Urban Railway Line 2.

It will invest KRW 29 billion in urban regeneration projects and KRW 28.2 billion in improving disaster-risk areas. Another KRW 15.1 billion has been allocated to build a joint headquarters for the fire department and relocate and construct fire stations.

The city has allocated KRW 8.5 billion for Namdo Pass to support public transportation users and KRW 7 billion to develop small and medium-sized smart cities.

In the environment and forestry sectors, the proposal includes KRW 16.6 billion for afforestation projects and KRW 11.6 billion to develop a forest biotechnology processing support complex for the Honam region.

The city will invest KRW 9.9 billion in urban forests and KRW 8.5 billion in a public wastewater treatment facility for the Honam-region national semiconductor industrial complex.

In education, the city has allocated KRW 404.6 billion for education finance grants, KRW 108.9 billion to support school food costs, and KRW 28 billion to foster and support glocal universities.

The proposal includes KRW 15.8 billion to establish the Gwangju AI Gifted School affiliated with GIST and KRW 2.4 billion to expand the office building at the Jeonnam government complex of the city council.

Gwangju Special City said that, while preparing its first budget after integration, it had reorganized similar and overlapping projects and administrative operating expenses, and reduced or scrapped projects related to events and festivals.

It also reviewed projects with insufficient results and reallocated the resulting funds to fostering future industries, stabilizing people's livelihoods, and promoting balanced development across the regions.

Baek Seungju, Deputy Mayor for Balanced Development of Jeonnam-Gwangju Integrated Special City, said, "The 2027 budget proposal is the first budget drawn up since integration, and we focused on turning the synergies of integrating Jeonnam and Gwangju into tangible results."

The budget proposal will undergo review by the city council's standing committees and Special Committee on Budget and Accounts before being finalized at a plenary session on December 16.

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