More State Subsidy Planned for City Mergers
By Do Je-hae
Staff Reporter
Cities, counties and districts merging with their neighbors in line with a state re-zoning project for administrative efficiency will receive a package of incentives, government officials said Wednesday.
"We will provide a special grant of 5 billion won for those that take the initiative to integrate with adjacent municipalities sharing common geographic and economic spheres," Lee Dal-gon, minister of the Public Administration and Security, said Wednesday.
Recently, President Lee Myung-bak reaffirmed the government's full support for the administrative mergers during his address to mark the Aug. 15 Liberation Day.
According to the ministry, 10 prospective regional mergers comprising 25 municipalities have been under active discussion, particularly in Gyeonggi and South Gyeongsang Provinces.
The mayors of Hanam and Seongnam of Gyeonggi Province announced a merger plan last week. Changwon and Masan of South Gyeongsang Province have been talking about merging since the 1980s.
"New cities to emerge as a result of such integrations will enjoy increased financial sufficiency, save administrative costs and provide more convenience for citizens," he said.
The government will spend around 2 trillion won in financial assistance to the 25 municipalities.
The mergers are aimed at enhancing efficiency and providing support for smaller localities with relatively less financial self-sufficiency.
"When merged, they will also be given priority in state funding and assistance for urban development through expanding social overhaul capital (SOC), schools and cultural facilities," Minister Lee said.
The government is also considering shifting benefits of the integration to citizens, such as reducing public utility charges and expanding financial assistance for childbirth.
The 10 prospective mergers will save a combined 1.8 trillion won by cutting down on excess administrative procedures, the minister said.
Cities will first hold a referendum on the merger and then seek approval from the legislature and the ministry.