PPP, North Gyeongsang Province hold budget policy talks, seek state funds for administrative merger and new airport

North Gyeongsang Province held a budget policy consultation with the People Power Party leadership, calling for passage of a special law on the Daegu-North Gyeongsang administrative merger within the year, support for the Daegu-North Gyeongsang new airport project, and party-level cooperation to secure state funding for 2027.

The province convened the meeting at the National Assembly on Wednesday, with Governor Lee Cheol-woo, People Power Party floor leader Jang Dong-hyeok, floor leader Jeong Jeom-sik, policy committee chair Im I-ja, Secretary-General Jeong Hee-yong, budget committee negotiator Yoo Sang-beom, and regional lawmakers in attendance.

Governor Lee called for the special law on the Daegu-North Gyeongsang administrative merger to clear the regular legislative session, asking the party to support its review by the Legislation and Judiciary Committee and to help secure administrative and fiscal exemptions needed for the planned launch of a unified special city in 2028.

On the new airport project, the governor called for public funding to cover compensation costs, citing the need to protect the property rights of residents in the relocation zone and ease lifestyle disruptions caused by project delays.

The province also urged swift passage of a special law amendment that would allow it to participate as a joint project operator and provide state support for the gap between donated and transferred assets.

Local fiscal issues also featured prominently on the agenda.

North Gyeongsang Province expressed concern over a projected decline in local allocation tax revenue following the creation of a future response fund, and over rising local government costs tied to the expansion of a rural basic income program. It called for the national government's share of funding for the basic income project to be raised to at least 90 percent, and for local governments to be given discretion over their own contribution ratios.

The province also proposed the introduction of a dedicated electricity tariff for the steel industry and the relocation of secondary public institutions — including the Korea Racing Authority — to North Gyeongsang Province.

For 2027 state-funded projects, the province requested increased national budget allocations for expanding regional transport networks — including a highway crossing Yeongil Bay and the Southern Inland Railway — as well as an AI-driven transformation of manufacturing, reconstruction of areas devastated by large-scale wildfires, and development of the food industry, including food technology.

The PPP leadership said it recognized administrative integration and the new airport as national priorities and pledged active support.

Floor leader Jang said he would "work to address the problem of shrinking local finances and ensure that the administrative merger and new airport project can move forward through cooperation between the ruling and opposition parties."

Governor Lee said the province would "boldly invest in projects that nurture North Gyeongsang's future growth engines, including AI and the food industry," adding that it would "run as one team with the PPP until the very last moment when the budget is finalized."