The South Korean government has confirmed a 5 trillion won fiscal-support package for the Jeonnam-Gwangju integrated special city in 2027, setting out how one of the biggest financial incentives tied to the merger will be controlled.
Of the total, 4.35 trillion won is to be placed in a new integrated local-government support fund that the mayor of the combined city will manage directly. The remaining 650 billion won is intended to support administrative functions transferred to the new local government. The plan was confirmed at the first support committee meeting for the integrated special city, held at the Government Complex Seoul on August 31.
The structure matters because it gives the merged government discretion over most of the package instead of dividing the money entirely among centrally administered programs. That could make it easier to align spending with regional priorities, but it also concentrates responsibility for how the funds are allocated and evaluated.
The next institutional step is legislation. The legal basis for creating and operating the new fund is expected to be included in the special act establishing the Jeonnam-Gwangju integrated special city. Until that framework is enacted and detailed spending plans are published, the 5 trillion won figure represents a confirmed support envelope rather than a complete project-by-project budget.