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President Lee urges break from Seoul-centered system at regional cooperation meeting

Published: 12 Nov. 2025, 20:00

President Lee Jae Myung, right, shakes hands with Seoul Mayor Oh Se-hoon during the ninth Central and Local Government Cooperation Council meeting at the presidential office in Yongsan, central Seoul, on Nov. 12. [JOINT PRESS CORPS]

President Lee Jae Myung emphasized the need for Korea to break free from a Seoul-centered system and achieve balanced national development at his first Central and Local Government Cooperation Council meeting since taking office on Wednesday.

Lee pledged to push forward with greater fiscal decentralization and the relocation of public institutions to regional areas. All 17 provincial and metropolitan government heads, including 11 from the People Power Party (PPP), attended the meeting.

“For balanced development to be realized, the central and local governments must become stronger and equal partners in cooperation,” Lee said in his opening remarks. “As part of that effort, I have instructed each ministry to use the term ‘local government’ instead of ‘local authority.’”

Lee added that his administration is prioritizing a “local first” approach, explaining that the 2026 budget includes increased support for regions farther from the capital area and significantly expands block grants that local governments can use autonomously.

While most governors and mayors supported the government’s balanced growth initiative, some expressed concerns, most notably Seoul's mayor. Seoul Mayor Oh Se-hoon of the PPP pointed out what he described as “reverse discrimination” against Seoul.

“When it comes to government subsidies, Seoul has always been treated differently,” said Oh. “Twenty or 30 years ago, the city had abundant fiscal resources, but its revenue structure has changed significantly and is now weaker than Gyeonggi’s.”

President Lee Jae Myung, left, speaks during the Central and Local Government Cooperation Council meeting at the presidential office in Yongsan, central Seoul, on Nov. 12. From left: Lee, Yoo Jeong-bok, chairperson of the Governors Association of Korea and Incheon mayor, and Seoul Mayor Oh Se-hoon. [YONHAP]

“The key to the local allocation tax is the base figure for domestic tax revenue, which stands at 19.24 percent,” said Gyeonggi Gov. Kim Dong-yeon of the Democratic Party, stressing the need to revitalize the economy. “During the Yoon Suk Yeol administration, that base was greatly reduced, which made local finances more difficult.”

“When the government distributed consumption coupons, the local contribution rate was reduced to 10 percent by the National Assembly, but even that was a heavy burden for us,” said Gangwon Gov. Kim Jin-tae of the PPP, raising concerns about the financial burden on local governments. “The new basic income policy for rural and fishing villages also increases the local financial load, so we ask the government to consult with us in advance when requiring local funding.”

“Those are valid points, and we should hold consultations on the central government’s share of financial responsibility,” said Lee, acknowledging some of the criticism. However, he rejected the suggestion that the rural basic income program was imposed unilaterally.

“That’s a misunderstanding,” Lee said. “It was offered as an open call for regions that wished to participate. It’s not something that was enforced uniformly, so it’s not an issue for negotiation.”

Seoul Mayor Oh Se-hoon, left, speaks during a joint meeting of the People Power Party’s local election planning committee and metropolitan government heads at the party’s headquarters in Yeouido, western Seoul, on Nov. 12. [NEWS1]

Despite the tense political climate and fierce partisan confrontation in recent weeks, the meeting proceeded in a relatively cordial atmosphere, with participants exchanging light jokes and laughter.

“One could sense that the discussion was divided more between the capital region and the provinces, rather than along party lines,” one attendee said, describing the meeting as “an engaging discussion.”

Upon entering the meeting room, President Lee smiled and shook hands with Mayor Oh, who greeted him warmly in return.

Just two hours before the meeting, however, PPP-affiliated governors and mayors gathered at the party’s headquarters in Yeouido, western Seoul, to criticize the administration over the prosecution’s decision to withdraw its appeal in the Daejang-dong development scandal, in which Lee was allegedly involved.

At the meeting, Mayor Oh accused the Lee administration and the ruling party of attempting to “seize control of the judiciary and the prosecution,” adding that “they are now threatening to launch indiscriminate investigations into public officials under the pretext of involvement in martial law or insurrection,” and claimed that “even the prime minister and Cabinet ministers are unfairly attacking the Seoul city government.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY OH HYUN-SEOK [[email protected]]