Special Report Can Special Cities Become Leaders in Local Autonomy?

[Suwon Ilbo=Reporter Park No-hun] Following the National Assembly's passage of the comprehensive amendment to the Local Autonomy Act on January 13, 2022, Goyang, Suwon, Yongin, and Changwon were designated as special cities with populations exceeding one million. Despite these four special cities having populations exceeding one million and being rapidly urbanized with metropolitan-level urban scale, they faced difficulties meeting the surging variety of administrative demands due to being subject to the same administrative and financial authority standards as basic local governments. However, with their designation as special cities and the granting of autonomous authority, processing times for various permits and licenses have been shortened and administrative services improved, enabling autonomous project promotion, expanded administrative services, and enhanced convenience in civil complaints processing, allowing more rapid and efficient administrative services. Additionally, administrative autonomy has been secured. This has established a foundation for formulating and implementing administrative policies suited to the characteristics and population of local government entities, representing an important starting point for change that can enhance the efficiency and flexibility of local administration by reflecting diverse regional needs and characteristics. This report diagnoses the changes and path forward for special cities marking their second anniversary of designation.

■ Expanded Social Welfare Benefits Standards Increase Welfare Benefits

Through the efforts of the Korean Special Cities Mayors' Council (hereinafter "Council") and the four special cities, the 2021 revision of the notice on "vehicle property valuation standards and basic property and debt deducted from property valuation" raised the basic property standard for social welfare benefits in special cities from small and medium-sized cities to large cities.

"Basic property amount" refers to property value excluded from income calculation, which is a figure announced by the Ministry of Health and Welfare recognized as necessary for maintaining basic living standards. Citizens residing in million-population metropolitan areas with socioeconomic scale and living standards similar to metropolitan-level cities had previously faced discriminatory welfare policies compared to metropolitan citizens, but with designation as special cities, they now receive equal benefits through expanded social welfare benefit (9 types) standards.

However, within a year, the "2023 Basic Livelihood Security System Basic Property Deduction Standards" were announced with uniformly raised standards, with six of these divided by region, resulting in the same scope of social welfare benefits. The remaining three types (basic pension, disability pension, emergency support) continue to receive special city benefits. While these were hard-won special city benefits, there is genuine satisfaction given that the government's vision of "a local era where Korea is a good place to live anywhere" is fully supported, and the beginning of this change started with special cities.

■ Establishment of Dedicated Departments for Special City Projects Improves Administrative Service Quality

With designation as special cities, one bureau can be established at City Hall to perform priority tasks. Accordingly, Suwon established the Citizen Cooperation Bureau, and Yongin established the New Growth Strategy Bureau.

Additionally, one bureau headed by a grade 3-4 district chief can now establish grade 4-5 officers.

This has enabled more professional handling of administrative tasks for the respective districts, and such organizational changes represent part of efforts to increase administrative service efficiency and quality alongside special city development.

■ Expanded Administrative Services and Increased Civil Convenience Through Transfer of Special City Functions

Additionally, a total of 9 functions and 142 tasks involving △logistics complex development and operation △development and operation of port facilities at local management trade ports △shared water management within local management trade port harbor areas △agricultural land conversion permits △environmental improvement burden fund matters △operation of local construction technology deliberation committees △registration of non-profit private organizations △designation evaluation of tourism special zones △designation and consultation of new technology startup agglomeration areas have been transferred to special cities.

Notably, with the transfer of "local construction technology deliberation committee composition and operation," which reviews design feasibility of construction projects costing over 10 billion won, special cities can now independently compose the committee previously operated by provinces, enabling autonomous pursuit of large-scale construction projects and reducing review periods by approximately two months for rapid processing.

With the transfer of authority to "impose and collect environmental improvement burden funds" on aging diesel vehicles, special cities can secure additional environmental improvement burden fund collection rebates and utilize them as investment resources for environmental improvement projects, expanding tax revenue increases and environmental improvement project implementation.

Thus, administrative services have improved through shortened permit and license processing times.

■ Secretariat Composition of the Korean Special Cities Mayors' Council

In April 2021, the Council was established to strengthen mutual solidarity and cooperation among special cities and to handle joint affairs. The Council has continuously recommended and urged approaches to securing special city authority through meetings with the Prime Minister, Senior Presidential Secretary for Political Affairs, Minister of Interior and Safety, Minister of Health and Welfare, Chair of the Decentralization Committee, Special Secretary for Autonomous Development, and National Assembly members, and requested the central government to transfer authority for 86 functions and 383 special city tasks.

Additionally, regular meetings are held twice yearly and provisional meetings are held as needed to continuously promote efforts to strengthen special city authority and secure special city-appropriate functional authority. Through such efforts, the Council plays an important role in collaboration among special cities, expansion of authority, and achievement of the goals of regional development and improved citizen welfare.

■ Remaining Tasks: Insufficient Institutional Support

However, despite two years passing since designation as special cities, special cities have yet to secure authority and financial autonomy befitting their status.

Of the 86 functions (383 individual tasks) requested, only 25 functions (185 individual tasks) completed review by the former Decentralization Committee and the Autonomous Development Committee, and among these, only 9 functions and 142 individual tasks have actually been transferred.

Moreover, while tasks have been transferred, insufficient finances and personnel for implementation appear as incomplete task transfer. Considering the scale of currently transferred and future tasks, the central government must efficiently provide personnel and financial support and make efforts to transfer authority, enabling special cities to autonomously perform duties and contribute to regional development, which alone would constitute complete task transfer.

■ The Future of Korea! Special Cities Leading Decentralization!

To realize the national policy goal of "a local era where Korea is a good place to live anywhere," special city mayors are joining forces to lead the way.

Following the "death cross" phenomenon in 2020 (deaths > births) and continued population decline, which has exacerbated regional imbalance and polarization, the Ministry of Interior and Safety designated 89 local governments nationwide as population-declining regions in 2021.

Special cities are preparing to respond jointly to the local extinction crisis, lead balanced national development, and work to vitalize regional economies and industry development in population-declining regions.

To this end, special cities will establish "coexistence and cooperation agreements between special cities and population-declining regions," through which to strengthen cooperation with regions facing difficulties from population decline, establish the foundation for implementing diverse policies and collaborations for coexistence, and are expected to contribute to regional prosperity and balanced national development.

The Council anticipates the realization of the government's policy to "boldly transfer central authority to local governments" and plans to continue urging authority transfers. Furthermore, the Council will renew recognition of the role and importance of local autonomy, and work to ensure special cities realize innovative autonomous administration as leaders of the local era and strive to improve citizens' quality of life.

The Council hopes that special cities will actively perform their roles in response to regional community needs and for regional development and citizen welfare, thereby enabling special cities to fulfill their role as leaders in local autonomy and become major engines of the local era.