Failed Alliances: Why Busan-Ulsan-Gyeongnam Integration & Economic Pact Stalled

by mark.thompson business editor

The ambitious plans for greater administrative integration between Busan, South Gyeongnam and Ulsan – collectively known as the Bu-Ul-Gyeong region – are once again facing scrutiny, with concerns mounting that the initiative is overly reliant on national government funding and lacks a strong, independent foundation. The latest roadmap, unveiled in late January 2026, aims for a unified local leadership election by 2028, but experts warn that repeating past failures to secure regional autonomy could jeopardize the entire project. The core issue, as highlighted by the Gukje Sinmun, is the potential for the economic alliance to become overly dependent on “천수답 국비” (national subsidies), mirroring the fate of previous attempts at closer collaboration.

The history of Bu-Ul-Gyeong integration has been marked by cycles of optimism and disappointment. Initial momentum built in 2018, with the passage of a revised Local Autonomy Act in 2020 and the establishment of a joint task force in 2021, led to concrete progress in identifying potential areas for joint governance. However, this momentum stalled after the 2022 local elections, when newly elected officials began to “re-examine” the plans, ultimately leading to the formal abandonment of the special union model in December of that year. The subsequent shift to a “super-regional economic alliance” proved to be largely symbolic, lacking the binding power needed for substantial change. This pattern of ambition followed by retreat is fueling skepticism about the current 2028 timeline.

The Perils of National Funding Dependence

A key concern, detailed in an analysis by the Gukje Sinmun comparing the plans of the ‘Bu-Ul-Gyeong Special Local Government Joint Promotion Team’ (2022) and the ‘Bu-Ul-Gyeong Super-Regional Economic Alliance Promotion Team’ (2024-2025), is the reliance on securing funds from the central government. Without a robust, self-funded system, the alliance risks being vulnerable to shifts in national policy or budget cuts. This is a stark contrast to the Chungcheong region, which has established a stable financial base through the creation of a special account – the ‘Chungcheong Metropolitan Union Special Account’ – to support its collaborative efforts.

The Busan Ilbo reported in July 2024 that the Bu-Ul-Gyeong alliance had identified 71 joint cooperative projects and established a national funding response team to secure budgetary allocations. This team’s primary focus is navigating the government’s budget process, from initial planning to final parliamentary approval. While this proactive approach is seen as a positive step, critics argue it underscores the region’s dependence on external funding rather than fostering internal economic strength.

Seeking National Support for Key Projects

In September 2025, representatives from the Bu-Ul-Gyeong economic alliance visited the National Assembly to advocate for funding for key collaborative projects in the 2026 budget. According to the Yonhap News Agency, the delegation, including lawmakers from Busan, Ulsan, and South Gyeongnam, presented six projects totaling 150.7 billion won (approximately $115 million USD) to members of the National Assembly Budget and Settlement Special Committee. These projects included the Busan New Port-Gimhae Expressway construction, operational support for a pediatric emergency medical center serving the three cities, and a joint initiative to purchase hydrogen buses.

The delegation emphasized the importance of government support for regional balance and reducing the concentration of resources in the Seoul metropolitan area. They argued that the Bu-Ul-Gyeong alliance is crucial for fostering economic growth and improving the quality of life for residents across the region. The alliance, formally launched in March 2023, is currently pursuing 57 projects across 15 key areas, guided by three strategic pillars.

Past Failures and Lessons Learned

Experts point to the collapse of the previous Bu-Ul-Gyeong special union as a cautionary tale. The failure, they argue, stemmed from an inability to present a united front and leverage a strong negotiating position. Without a cohesive strategy and a clear vision for regional autonomy, the alliance was unable to effectively advocate for its interests and secure the necessary funding. This lack of a unified voice allowed the initiative to become overly reliant on national subsidies, leaving it vulnerable to external pressures.

The current push for integration faces similar challenges. While the economic alliance represents a step forward, its success hinges on the ability of Busan, South Gyeongnam, and Ulsan to prioritize regional self-determination and develop a sustainable financial model. Simply seeking funds from the central government, without building a strong internal economic base, risks repeating the mistakes of the past and turning the alliance into another “sandcastle” susceptible to collapse.

The next critical step will be the outcome of the 2026 budget deliberations in the National Assembly. The allocation of funds for the proposed Bu-Ul-Gyeong projects will be a key indicator of the central government’s commitment to the initiative and the region’s ability to secure its future.

What are your thoughts on the future of the Bu-Ul-Gyeong alliance? Share your comments below and let us know how you think this regional integration can succeed.

You may also like

Leave a Comment