Busan-Ulsan-South Gyeongsang region aims to become Korea's new growth axis

The mayors of Busan and Ulsan and the governor of South Gyeongsang Province met in Busan and adopted a joint declaration outlining an ultra-regional growth strategy to turn the three regions into a new growth axis for South Korea. Busan Mayor Jeon Jae-soo, Ulsan Mayor Kim Sang-uk and South Gyeongsang Governor Park Wan-su held the fourth Busan-Ulsan-South Gyeongsang Policy Council at 1:30 p.m. Tuesday at the Westin Josun Busan in Haeundae, discussing ways to build an ultra-regional cooperation framework and to jointly secure state funding for major agenda items and cooperative projects.

The three leaders had already met on Aug. 13 for a signing ceremony on a joint initiative to build a maritime capital region and attract joint investment, and the following day at the Governors Association of Korea's regular general assembly. Tuesday's gathering marked the first official meeting of the three regional government heads at one table since the start of their ninth terms in office. The meeting also came against the backdrop of a need to rebuild the framework for ultra-regional cooperation after the June 3 local elections shifted the mayoral seats in Busan and Ulsan to the Democratic Party of Korea, leaving People Power Party Governor Park Wan-su to coordinate anew with them.

The three leaders conducted Tuesday's meeting in four stages — covering the establishment of an ultra-regional cooperation framework, the drafting of an ultra-regional development strategy, a growth-engine cultivation plan under the government's "5 growth poles, 3 special zones" initiative, and joint efforts to secure state funding for major agenda items and cooperative projects — before adopting a seven-point joint declaration on ultra-regional cooperation among the three regions.

In the joint declaration, the three leaders agreed to build an ultra-regional cooperation framework. They will launch a standing council among the three regions to flesh out sector-specific cooperation tasks covering industry, transportation, daily life and administration, and draw up a road map for the ultra-regional cooperation framework.

They also agreed to identify future new industries and key projects for the three regions to jointly cultivate, in response to the government's balanced-growth policies such as the ultra-regional special account and ultra-regional special agreements, and to jointly draw up a six-year development strategy to secure funding and align policies.

They will jointly draw up a growth-engine cultivation plan covering advanced shipbuilding and shipping, innovative manufacturing for future mobility, aerospace and defense, and next-generation nuclear power and energy. Tying in with the government's three mega-projects — semiconductors, AI data centers and physical AI — they also agreed to integrate advanced AI technology into the region's manufacturing and industrial base and build an ultra-regional industrial innovation ecosystem with companies, universities and research institutes.

The three regions will also strengthen ultra-regional cooperation in the southeastern region tied to the second phase of public institution relocation. In response to the government's second-phase relocation, they will pool their capabilities to attract key public institutions that reflect each region's industrial characteristics and strengths. After the institutions relocate, they plan to link them with institutions relocated in the first phase, spreading the benefits across the entire southeastern region and establishing it as a new growth hub for balanced national development.

They will push to secure state funding for key cooperative projects such as expanding the metropolitan transportation network and upgrading core industries, and to broaden fiscal support through channels such as the ultra-regional special account. They plan to continue calling on the central government to devolve and expand its authority and funding to the regions so that local governments can lead in designing and implementing policy. The three leaders also agreed to push ahead with the Busan-Yangsan-Ulsan metropolitan railway and the southeastern circular metropolitan railway — which will connect 7.6 million residents across the three regions — to realize a one-hour living zone spanning Busan, Ulsan and South Gyeongsang Province.

To create new growth drivers by connecting the strengths of the three regions, they agreed to strengthen the global logistics and maritime network centered on Gadeokdo New Airport and to cooperate in successfully hosting international events such as the UN Ocean Conference and the Ulsan International Garden Expo. They also pledged to secure future growth engines through the swift enactment of special legislation for an aerospace complex city and the creation of a quantum cluster, and to expand ties with the southern coastal region to emerge as a global ultra-regional economic bloc leading Northeast Asia.

At Tuesday's meeting, South Gyeongsang Governor Park Wan-su said, "We will continue consultations with Busan and Ulsan to narrow our differences and cooperate wherever necessary." He added, "We will bring together the strengths of the three regions across industry, transportation and everyday life to produce results and help this region emerge as Korea's new growth axis."

Ulsan Mayor Kim Sang-uk proposed building "an ultra-regional united front in which the three regions support one another in attracting the integrated headquarters of public institutions." He said the purpose of reforming public institution functions "must not be undermined by political considerations, regional self-interest or simply dividing up the spoils," and pledged to "actively support Busan's strategy to concentrate maritime-related functions such as shipping and ports, as well as South Gyeongsang Province's strategy to attract small and medium-sized enterprises and industrial technology."

Meanwhile, Tuesday's joint declaration included no content on full administrative integration or a special federation — a megacity arrangement — confirming that differences over how the three regions should ultimately integrate remain. South Gyeongsang Province reaffirmed its position of pursuing administrative integration while continuing to strengthen ultra-regional cooperation based on the current economic alliance. In an Aug. 21 interview, Governor Park Wan-su said, "Mayor Jeon Jae-soo did not state a clear position," adding, "I told him it would be better to meet after working-level consultations and coordination."