Seoul: The government announced its plan to provide financial assistance of up to 20 trillion won (US$13.6 billion) to cities and provinces that choose to merge, as part of the Lee Jae Myung administration's efforts to promote regional development.

According to Yonhap News Agency, Prime Minister Kim Min-seok revealed that the local governments of Gwangju and South Jeolla Province, as well as Daejeon and South Chungcheong Province, are considering mergers. This move is expected to significantly impact the local elections scheduled for June. The government intends to offer up to 5 trillion won annually, reaching a total of 20 trillion won over four years, to each integrated special city. These new entities will gain a status similar to that of the Seoul metropolitan government, with increased administrative positions and responsibilities.

Kim emphasized the incentives and autonomy that merging local governments would receive. He stated, "Balanced regional development is not a policy that is considerate of the regions but a survival strategy for a sustainable future." The government's plan also includes favoring integrated cities in the next phase of public institution relocations in 2027. Additionally, companies relocating to these merged regions would benefit from subsidies, rent reductions, and tax exemptions.

To support these integrations, Kim announced the formation of a task force dedicated to financial backing and the development of detailed measures, in collaboration with the National Assembly.