Core Summary of the Reform
South Korea is advancing a large-scale "province-city merger" initiative: First, the province of Jeollanam-do (similar to a Chinese province) and the metropolitan city of Gwangju will be merged to form the "Jeonnam-Gwangju Integrated Special City." Subsequently, mergers between Daejeon and Chungcheongnam-do, Daegu and Gyeongbuk-do, and Busan with Gyeongsangnam-do and Ulsan are also planned. The goal of this reform is to address issues such as the dominance of Seoul's metropolitan area, excessive administrative divisions caused by declining population, and overlapping functions between provinces and cities. South Korea's approach differs significantly from Vietnam's "county-to-province" reorganization last year, which reduced the number of provinces from 63 to 34 and resulted in the layoffs of 100,000 government employees. In South Korea, the process is more consultative and relies on natural attrition to manage the surplus of civil servants, whereas Vietnam's reform was top-down and mandatory.
I. Understanding South Korea's Province-City Mergers: A Combination of "Metropolitan Cities" and Surrounding Provinces
To comprehend this reform, it’s helpful to translate South Korea’s administrative divisions into a familiar framework:
- Special City (e.g., Seoul) = equivalent to a Chinese municipality directly under the central government;
- Metropolitan City (e.g., Gwangju, Busan) = a city at the provincial level with special status;
- Province (e.g., Jeollanam-do, Gyeonggi-do) = similar to a Chinese province, although smaller in size (for example, Jeollanam-do covers only 12,000 square kilometers, smaller than Suzhou).
The merger aims to create new super-administrative units that are on par with Seoul. After the reform, South Korea will have between 12 and 13 provinces, meaning there will be fewer large provinces but more smaller ones.
The benefits of this approach are clear: Currently, metropolitan cities are responsible for urban areas, while provinces manage both urban and rural regions. By merging these entities, resources can be allocated more efficiently—e.g., Gwangju can focus on developing industries like semiconductors and AI, while Jeollanam-do provides the necessary land and resources.
II. Why the Merger Now? Three Urgent Challenges
South Korea is taking this step out of necessity:
1. Seoul's Dominance and the Decline of Other Regions
Half of South Korea’s population (51 million) lives in the Seoul metropolitan area (including Seoul, Gyeonggi-do, and Incheon), which accounts for over 50% of the nation's GDP, and 80% of the top 100 companies are located there. Other regions, such as Jeju-do with just over 500,000 residents, struggle to develop due to the loss of talent and industries attracted by Seoul.
2. Declining Population and Overlapping Administrative Divisions
South Korea has one of the lowest birth rates in the world, and its population is declining. By 2070, it is projected to drop to 37 million. With over 100 areas facing population decline, the current administrative structure is inefficient and costly to maintain.
3. Conflicting Plans between Provinces and Cities
Provinces and metropolitan cities have similar levels of authority but manage adjacent territories, leading to overlapping industrial plans and wasted resources. Merging these entities will help coordinate development more effectively.
III. A Gentle Approach Compared to Vietnam’s Reform
Vietnam’s reorganization was much more drastic: It reduced the number of provinces from 63 to 34, abolished county-level governments, and laid off 100,000 government employees, aiming to streamline institutions and reduce fiscal burdens for economic development.
South Korea’s approach is more gradual:
- It does not actively lay off civil servants but provides financial support to the merging areas.
- The surplus of civil servants is managed through natural attrition (e.g., by delaying new recruitments or reducing hiring).
- The reform process is the result of negotiations among political parties and regions, avoiding resistance.
The difference lies in the context: Vietnam faces a population growth challenge, while South Korea deals with both declining population and regional imbalances.
IV. Can the Merger Solve These Problems? Success Depends on Implementation
While the benefits of the merger are evident, there are also challenges:
- Significant Differences in Size and Economy
The merged city of Gwangju will have a population of around 3.2 million and a GDP of over 700 billion won (comparable to Wuxi in China), but it still lags far behind Seoul’s population of 10 million and GDP of nearly 3 trillion yuan.
- Civil Servant Issues
Although the reduction of civil servants is gradual, it may take years to complete, potentially affecting administrative efficiency during this period.
- Regional Balance
The attractiveness of Seoul remains high; whether the new merged city can retain young people is uncertain. If it cannot, the merger may merely change the name without solving the underlying issues.
Nevertheless, for South Korea, this is a necessary step to address declining population and regional imbalances. Without reform, the situation will only worsen.
Conclusion
South Korea’s province-city mergers are a response to its declining population and regional disparities. Although the approach differs from Vietnam’s, both aim to make administrative structures more adaptable to current realities. Whether this reform will be successful depends on how effectively the combined entities can leverage their strengths for development.