SEOUL – In a landmark move to decentralize national growth, Prime Minister Kim Min-seok announced on Friday a massive support package for newly formed "Integrated Special Cities." The government pledges up to 20 trillion won ($14.8 billion) over four years to incentivized provinces and cities that successfully merge their administrative bodies.

Elevating Regional Status to Match Seoul
The core of the proposal is to grant these integrated entities a legal status equivalent to Seoul Metropolitan City. This includes:

Administrative Expansion: Increasing the number of vice-mayors to four and elevating their rank to the vice-ministerial level.
Enhanced Autonomy: Granting broader self-governing authority to ensure regional policies are led by local needs rather than central mandates.

Financial Incentives and Tax Breaks
To facilitate this "Great Transition" from Seoul-centric to region-led growth, the government plans to introduce the "Administrative Integration Shared Tax" and "Administrative Integration Subsidy."

Beyond direct cash injections of 5 trillion won annually, the Prime Minister outlined several corporate incentives to attract business:

Tax Reductions: Deep cuts in local taxes for development projects and corporate occupants.
Employment Support: Direct subsidies for hiring and vocational training.
Land Benefits: Extended leases on state-owned property and significant rental discounts.

Strategic Relocation of Public Institutions
Prime Minister Kim also confirmed that Integrated Special Cities would receive priority during the second phase of public institution relocation scheduled for 2027. This strategy aims to create a "Special Opportunity Zone" effect, mirroring the benefits of existing high-growth economic districts.

"We are shifting the paradigm of national development," Prime Minister Kim stated. "By providing certain incentives and autonomy, we will ensure that integrated local governments become the new engines of the Korean economy."

Remaining Challenges
While the vision is ambitious, specific funding mechanisms remain undecided. The Ministry of Planning and Budget noted that a joint task force will soon be established to determine the exact ratio of national-to-local tax adjustments required to sustain this 20 trillion won commitment.