Gyeongsangnam-do Submits 709.8 Billion Won Second Supplementary Budget Proposal ... High Oil Price Response and Key Initiatives

First Issuance of Local Government Bonds under Park Wansoo’s Administration

On July 6, Gyeongsangnam-do submitted its second supplementary budget bill for 2026, totaling 709.8 billion won, to the provincial council. This marks a 4.8% increase compared to the first supplementary budget.

With both the first and second supplementary budgets included, the total annual budget for Gyeongsangnam-do in 2026 amounts to 15.5346 trillion won.

The province explained that the second supplementary budget reflects government supplementary budget projects such as high oil price compensation payments and changes in central government funding. It is also focused on addressing key issues, including the swift implementation of newly selected competitive projects, covering shortfalls in flood damage recovery, and meeting additional demand for direct payments to farmers and fishermen.

Gyeongnam Provincial Government Office.
Photo by Lse Ryeong Lee

Major allocations include 430 billion won for high oil price compensation payments, 19.7 billion won to support public transportation fare refunds (K-Pass), 3.2 billion won for the Gyeongnam Pass, 20.3 billion won for the supply of electric vehicles, and 3 billion won for the supply of hydrogen electric vehicles.

Additional allocations aimed at supporting youth and reducing the burden on farm and fishing households include 1.8 billion won for the Social Solidarity Economy Youth Work Experience Pilot Project, 1 billion won for inorganic fertilizer price subsidies and supply stabilization, and 10 billion won for coastal fishing vessel scrapping.

For newly selected competitive projects, the budget includes 2.3 billion won for a region-led artificial intelligence (AI) transformation project, 2.7 billion won for fostering regional innovation-leading companies, 400 million won for establishing a testing and inspection support center for small modular reactor (SMR) manufacturing components, 400 million won for building an advanced nanomaterial commercialization hub, 500 million won for strengthening the global competitiveness of small ship maintenance, repair, and operations (MRO), 600 million won for technical support for small ship design engineering, 8.7 billion won for customized local job support such as regional connection, basic connection, and support connections, 1.1 billion won for building a smart export-specialized complex, and 500 million won for upgrading fishing village experience and recreation villages.

The supplementary budget also includes 1.2 billion won for increased demand for farmers’ and fishermen’s direct payments, 8.1 billion won for the provincial share of rural basic income, 1.5 billion won for management stability funds for rice farmers, 9 billion won for senior jobs and social activity support, 5.3 billion won for childcare subsidies, 1.9 billion won for child allowances, 2.8 billion won for maternal and newborn health management support, 400 million won for nighttime extended care facilities for children, 300 million won for youth caregivers, 10 billion won for interest subsidies for small and medium-sized enterprise management stabilization funds, 1.8 billion won for policy funds interest subsidies for small business owners, and 400 million won for credit guarantee fee support for small business owners.

The province also plans to allocate 900 million won for road alignment improvements between Jeongseo and Pyeongchon, 3 billion won for land compensation for road construction between Daedong and Maeri, and 12.7 billion won for the construction of four new roads, including the Dudong access road, to expand road infrastructure.

In addition, Gyeongsangnam-do has decided, for the first time in the administration of Governor Park Wansoo, to issue local government bonds worth 63 billion won.

The bonds will be used to cover the province's share of high oil price compensation payments required by the government’s supplementary budget (47.5 billion won), to make up for the shortfall in river damage restoration costs from last year's heavy rainfall (10.7 billion won), and for mountain disaster prevention projects such as creating erosion control facilities (4.8 billion won).

Governor Park Wansoo stated, "As the eighth popularly elected administration comes to a close, we have prepared this supplementary budget to address some remaining shortfalls and to ensure the timely execution of government supplementary budget projects and newly selected competitive projects," adding, "We are issuing some local government bonds to respond to urgent disaster-related needs."

He further emphasized, "Although we are issuing some local bonds, we will do our utmost to manage fiscal soundness."

The provincial council plans to review the supplementary budget bill during its 435th extraordinary session, which begins on July 16.

This content was produced with the assistance of AI translation services.