Gyeonggi governor tells mayors province faces 1 trillion won gap, no uniform aid rate set
In short
Gyeonggi Governor Chu Mi-ae met the executives of the province's mayors and county heads association on 21 October and said next year's budget is more than 1 trillion won short even if local bonds are issued to the limit. She said no uniform provincial subsidy rate has been fixed and that the plan can be changed after hearing the municipalities.
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Gyeonggi Governor Chu Mi-ae met executives of the Gyeonggi Province Association of Mayors and County Heads on 21 October at Dodamso, the former governor's residence, and asked for their cooperation on fiscal problems ahead of drawing up next year's main budget. Newsis and Asia Economy described it as a first meeting, and Newsis's second report said it was the first since the association's executive team was launched. [ 1 , 2 , 3 , 4 ]
Chu told the executives that next year's budget would be more than 1 trillion won short even if local bonds were issued to the limit. Newsis and Asia Economy quoted her as saying she wanted to explain this situation and discuss it. Asia Economy also quoted her as saying she was being misunderstood as not issuing local bonds, and that the figure assumed bonds were issued as far as possible. [ 1 , 2 , 4 ]
On the provincial subsidy rate, Chu said the focus areas and weight of projects differ by region and that fiscal strength varies widely among municipalities, so need and financial burden must be examined through communication. She said the rate had not been set uniformly at a certain percentage and that the province would look at each municipality's conditions together with each project's weight. Newsis and Asia Economy quoted her as saying the province had decided nothing in advance and that changes were possible after hearing the association. [ 1 , 2 , 4 ]
Yonhap reported that the province was known to be considering lowering the rate for joint projects with municipalities next year to 30% and giving differential aid according to each municipality's finances. Newsis and Asia Economy reported that the province would examine the appropriate rate for each project and apply differential rates as a supplement to municipalities in difficult positions. Asia Economy added that the province planned to sort projects needing support from those to be cut or abolished after reviewing opinions from the 31 municipalities. [ 1 , 2 , 4 ]
Association chair Choi Dae-ho, mayor of Anyang, said the province and municipalities should pool wisdom so that budgets in areas tied to people's lives are not curtailed. He said the association would serve as a practical channel connecting the 31 municipalities and convey their voices faithfully. Newsis's second report, with an Anyang dateline, said participants shared a concern that reduced provincial aid could raise municipal burdens and lead to cuts in some livelihood projects. [ 1 , 2 , 3 , 4 ]
The meeting also discussed a future response fund using extra tax revenue from the semiconductor boom. Chu and the executives agreed the fund should be run so that local finances are not reduced. Asia Economy reported that the association agreed with the fund's purpose but was concerned about lower local allocation tax and weaker fiscal autonomy and stability. Newsis and Asia Economy said the province would press the central government to reflect tax-generation contribution when regional projects are allocated, and a provincial official said the province would review the association's proposals and prepare improvement and support measures. [ 2 , 3 , 4 ]
Why it matters
The province's subsidy rate for joint projects with cities and counties affects municipal finances, and the association's executives raised concern about the burden on them. Outlets reported that the province will review rates project by project, so the outcome is still open.
Key facts
- Chu Mi-ae, governor of Gyeonggi Province, met executives of the Gyeonggi Province Association of Mayors and County Heads at Dodamso, the former governor's residence, on 21 October. [ 1 , 2 , 4 ]
- Chu said next year's budget would be more than 1 trillion won short even if local bonds were issued up to the limit. [ 1 , 2 , 4 ]
- Chu said the provincial subsidy rate had not been set uniformly at a certain percentage and that the province would look at each municipality's conditions and each project's weight. [ 1 , 2 , 4 ]
- The province said it would review the appropriate rate for each project and apply differential rates as a supplement to municipalities in difficult financial positions. [ 2 , 4 ]
- The meeting also discussed a future response fund using extra tax revenue from the semiconductor boom, and Chu and the association agreed it should be run so local finances are not reduced. [ 1 , 2 , 4 ]
- Association chair Choi Dae-ho, the Anyang mayor, said the province and municipalities should pool wisdom so that budgets for people's livelihoods are not curtailed. [ 1 , 2 , 4 ]
Confirmed by several sources
- Chu Mi-ae met the association's executives on 21 October at Dodamso and asked for cooperation on fiscal problems. [ 1 , 2 , 4 ]
- Chu said the province would be more than 1 trillion won short next year even if it issued local bonds to the limit. [ 1 , 2 , 4 ]
- Chu said no uniform subsidy rate had been decided and that changes were possible after the association's views were heard. [ 1 , 2 , 4 ]
- Chu and the association agreed the future response fund should be set up so that local finances are not reduced. [ 1 , 2 , 4 ]
Still unclear
- Whether the province will lower its subsidy rate for joint projects with municipalities to 30%. Only Yonhap said the province was reportedly considering a 30% rate with differential aid; Chu said no uniform percentage had been set.
- How far the municipalities' concern about subsidy cuts would lead to reductions in livelihood projects. Only Newsis's summary (Anyang dateline) said participants shared a concern that reduced provincial aid could lead to cuts in some livelihood projects.
- Which projects will be kept, cut or abolished. Asia Economy said the province plans to sort projects after reviewing opinions from the 31 municipalities; no outcome was reported.
- The post held by Siheung Mayor Lim Byung-taek in the association. Yonhap called him a vice chair; Newsis and Asia Economy called him secretary-general.
What local media are saying
Timeline, local time
- Yonhap published its report on the meeting held on the afternoon of 21 October. [ 1 ]
- Newsis published its report with Chu's and Choi's remarks. [ 2 ]
- Newsis published a second report saying mayors and county heads had raised concerns about the subsidy rate adjustment. [ 3 ]
- Asia Economy published its report on 22 October. [ 4 ]