Jeonnam-Gwangju Seeks More State Funds After Winning 13.9 Trillion Won

First Budget Policy Meeting With Democratic Party Push Focuses on Transport, AI, Space and Chips

Society|
|
By Park Ji-hoonjhp9900@sedaily.com
||
Min Hyung-bae, mayor of the Jeonnam-Gwangju Integrated Special City (third from right, front row), cheers with Democratic Party leader Kim Min-seok and other attendees at the "Democratic Party–Jeonnam-Gwangju Integrated Special City Budget and Policy Consultative Meeting" held at the party leader's conference room in the National Assembly in Seoul on the 30th. Photo courtesy of Jeonnam-Gwangju Integrated Special City - Seoul Economic Daily Society News from South Korea
Min Hyung-bae, mayor of the Jeonnam-Gwangju Integrated Special City (third from right, front row), cheers with Democratic Party leader Kim Min-seok and other attendees at the "Democratic Party–Jeonnam-Gwangju Integrated Special City Budget and Policy Consultative Meeting" held at the party leader's conference room in the National Assembly in Seoul on the 30th. Photo courtesy of Jeonnam-Gwangju Integrated Special City

JEONNAM-GWANGJU — Jeonnam-Gwangju Special Metropolitan City has launched a citywide push to secure more state funding in the 2027 budget.

The city held its first budget policy meeting with the Democratic Party of Korea on the 30th at the party leader's conference room in the National Assembly, asking for additional state funding for key regional projects including expanded metropolitan transport networks and the development of future industries. It was the first budget consultation between the city and the party since the merged special metropolitan city was launched. The two sides agreed to work together to include projects that were left out of the government's budget proposal or need larger allocations during the National Assembly's budget review.

Attending from the party were leader Kim Min-seok, floor leader Han Byung-do, policy committee chair Kwon Chil-seung, Special Committee on Budget and Accounts chair Lee Kwang-jae, Good Local Government Committee chair Yeom Tae-young, chief spokesperson Park Seong-jun and chief of staff Kim Tae-sun, along with Mayor Min Hyung-bae. From the region, city party chair Ahn Do-geol, local National Assembly members and city council speaker Song Hyung-gon took part.

The city secured 13.9009 trillion won ($9.9 billion) in state funding in the government's 2027 budget proposal, up 6.3% from the 13.0804 trillion won that the former Jeollanam-do province and Gwangju city obtained a year earlier. Adding 900 billion won from the growth engine account of the future response fund brings the increase to 13.1%.

The city plans to use that result as a springboard to raise the figure further during the National Assembly's review.

Transport is the centerpiece. The city grouped six projects — the Yeongam-Gwangju expressway, the new industry rail line, the West Coast line, the Naju-Gwangju metropolitan railway, the Hwasun-Gwangju metropolitan railway and the Naju connecting line — as "core regional metropolitan transport networks" and requested support for them. It also asked that the projects be reflected in the fifth national railway network plan and the third expressway construction plan, and that they be selected for or exempted from preliminary feasibility studies.

On industry, the city put seaweed, self-driving vehicles and the space sector front and center. Major requests included a pilot cluster for dried seaweed, a testbed for autonomous vehicle safety performance management and workforce training, and a joint campus for space launch vehicles bringing together government, industry, academia and research institutes.

Artificial intelligence and semiconductors also featured prominently. The city listed support for the national AI cluster, infrastructure for high-power semiconductor modules, demonstration and commercialization of advanced packaging for AI optical semiconductors, infrastructure for a mega-project AI data center, a demonstration center for domestically developed NPUs, and a startup park.

The city added 10 more projects in culture and living infrastructure, including designation of a seaweed industry promotion zone, a future national athletes' village, a domed stadium for sports and performances, an AI center for marine genetic resources, a community culture recovery center on Mount Mudeung, and an AI-content convergence support center.

The city stressed that these projects are not simply local requests but core foundations for spreading the benefits of the merger into everyday life and industrial sites.

"In the first national budget since Jeonnam and Gwangju became one, with help from the party and local National Assembly members, we were able to include 13.9009 trillion won in state funding and 5 trillion won in merger fiscal incentives," Min said. "We have dispelled concerns that the merger would reduce state funding, so now we will secure additional budget during the National Assembly's review to support the overwhelming growth of Jeonnam-Gwangju Special Metropolitan City."

The city plans to form a "one team" with the Democratic Party leadership, the city party organization and local National Assembly members to respond to the National Assembly's budget review. It said it will focus on securing additional state funds for new projects that were not reflected in the government proposal and for projects that need larger allocations.

Original reporting by Park Ji-hoon for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

Watch · Seoul Economic Daily

More →
4:02

AI KEY

Preview
Korean Corporate Intelligence HubKOSPI · KOSDAQ · 12 sectors

A live, cap-weighted view of every KOSPI and KOSDAQ sector, with same-day Korean reporting distilled by company — built for foreign investors, correspondents and analysts who need to scan Korea before the next session.

Korea Company Atlas

Preview
Market Ontology · The Feedback LoopKFTC 2025 · 92 groups · 121,954 articles

An English ontology of the Korean market — how companies, the media, the government and the National Assembly move each other in a loop. Korea's named controlling persons and designated business groups are a mechanism, not a risk to be priced blind.

SIGNAL

Now live
English Edition · Capital MarketsM&A · IPO · PE · Fund Flows

SIGNAL English Edition is live — Korea's deal desk reporting in English. M&A, IPOs, private equity and fund flows, covered daily for global institutional investors. Browse free; subscriber-only scoops at the 50% intro rate.