Korea’s local governments struggle amid regional divide

Direct elections for heads of local governments in Korea, marking a new era of locally elected governance, will celebrate their 30th anniversary on Tuesday. Over the decades, local autonomy has faced trial and error, leading to improvements in residents’ quality of life. However, it now confronts a crisis threatening its foundation. Declining birth rates and an aging population have weakened local finances and public infrastructure. As a result, many young people have left their hometowns seeking jobs and better services, further deepening the capital region’s dominance in a vicious cycle.

More than half of Korea’s population resides in the capital area, which accounts for over 50 percent of the country’s Gross Regional Domestic Product (GRDP). Due to this extreme centralization, 130 of the nation’s 228 local governments are at risk of disappearing, including major metropolitan cities such as Busan. According to the Korea Institute for Industrial Economics and Trade, 64 percent of national inequality since the 2000s stems from the gap between the capital region and non-capital areas. This regional disparity has reached the level of a national disease that threatens Korea’s long-term sustainability.

Unless complex challenges such as the lack of local jobs and the collapse of public services in education, healthcare, and transportation are addressed, the gap between the capital and non-capital regions will widen. The central government has limited ability to fully understand and quickly respond to each region’s needs. That is why focus must shift to successful “everyday policies” implemented by local governments, which are closer to the people. For example, Incheon launched a local birth promotion policy that raised births by 14 percent in the first quarter of this year compared to the same period last year, a remarkable turnaround. Incheon offers a customized support package worth about 100 million won per child, including 28 million won in local subsidies on top of central government birth and childcare benefits. These supports continue until the child turns 18. Other local initiatives include a public postpartum care center in Seogwipo, Jeju, and a public late-night children’s hospital in Gwangju, both examples of local solutions addressing declining birth rates.

In North Gyeongsang Province, a “shareholder-type double cropping” model has been introduced, where farming corporations collaborate on joint agricultural production. This community-based economic model has doubled incomes and created jobs for young farmers. Busan is working to retain young residents by developing a “15-minute city,” where essential facilities such as cultural centers, hospitals, and gyms are accessible within a 15-minute walk or bike ride.

The threat of regional extinction stems from the nation’s failure to offer young people viable alternatives outside the capital region. Local governments, more than the central government, understand these realities. It is their responsibility to craft effective solutions. The new administration, which pledged balanced regional development and decentralization, must explore ways to grant greater autonomy to local governments. Such efforts will foster local creativity and independence. Scaling up and replicating successful local policies in other regions is also essential.