Jeonnam-Gwangju has proposed its first integrated annual budget for 2027, linking investment in advanced industries with support for rural communities and local businesses. Submitted on November 11, the proposal totals approximately KRW 22.02 trillion, an increase of 5.8% over the former Jeonnam and Gwangju administrations’ combined initial budgets for 2026.
The administration intends to connect Gwangju’s AI capabilities with Jeonnam’s strengths in renewable energy and aerospace. Its priorities also include regional growth infrastructure, keeping spending within the local economy and improving everyday public services.
Investment in Semiconductors and Applied AI
The proposal earmarks KRW 37.5 billion for companies investing in semiconductor packaging. This stage of production protects chips and connects them to the circuits needed for use in finished products.
The AX Demonstration Valley programme would bring together KRW 163.8 billion in national, municipal and private funding. Its focus is the practical application of AI, including mobility and energy technologies as well as services in transport, health and safety.
Income Support for Rural Communities
KRW 433 billion is proposed for the rural basic income pilot. Including county funding, the programme would total KRW 640.1 billion and cover approximately 669,000 residents in 16 counties. Seven nationally supported counties would begin receiving support in the first half of 2027, followed by nine additional counties in the second half.
The administration also aims to reduce differences in support between the former jurisdictions. Measures include higher allowances for farmers and fishers in the former Gwangju area and the extension of youth start-up financing support to the former Jeonnam area.
Agriculture, Fisheries and Food
Reporting by Jeonnam Ilbo provides further detail on investment in the region’s rural and coastal economy. Proposed allocations include KRW 8.5 billion for smart agriculture development zones and KRW 5.9 billion for an agricultural AI transformation business centre.
Other measures focus on resilience and access: KRW 119.6 billion is allocated to drainage improvements and KRW 22.4 billion to crop disaster insurance subsidies. For coastal communities, the proposal includes KRW 11.1 billion in passenger ferry fare support for island residents, KRW 13.5 billion for local fishing ports and KRW 4.6 billion for advanced environmentally friendly aquaculture systems.
Tourism and Balanced Regional Development
The budget would support local consumption through KRW 155.8 billion for local currency vouchers. Discounted travel and the planned 2027 Visit Year are intended to connect visitor spending with local businesses.
KRW 4 billion is proposed for development planning across four areas. Gwangju would focus on cultural creation; the east on performances and sports; the central and southern area on future agriculture and K-food; and the west on renewable energy, international conferences and tourism. These funds concern planning, rather than completed development projects.
Support for Young People and Public Services
The proposal also includes KRW 26.3 billion for youth rent assistance and KRW 16.3 billion for integrated medical and care services. Education measures reported by Jeonnam Ilbo include KRW 28 billion to support the Glocal University initiative and KRW 15.8 billion for establishing an AI school for gifted students in Gwangju.
Next Steps
The allocations remain proposals subject to council review. A final decision is scheduled for December 16, 2026. Yonhap reports that the administration plans to incorporate KRW 5 trillion in national integration support through a supplementary budget in early 2027, once the national budget is confirmed.