Gyeongbuk Governor Lee Cheolwoo Tells Vice Minister Kim Minjae: "Difficult to Agree on Future Response Fund"

General Allocation Tax Expected to Decrease by 4.5 Trillion Won
"Fund Sourced by Reducing Local Governments' Independent Revenues"

Kim Minjae, Vice Minister of the Ministry of the Interior and Safety, visited Gyeongbuk Provincial Office on September 21 and held a meeting with Lee Cheolwoo, Governor of Gyeongbuk Province, to discuss major issues such as the Future Response Fund and local finances.

Vice Minister Kim explained the objectives behind the establishment of the Future Response Fund, the key changes to the Local Allocation Tax Act, and the general direction of support for local governments. He also requested cooperation from local governments regarding the introduction of the fund.

Kim Minjae, Deputy Minister of the Ministry of the Interior and Safety (left), is visiting the Gyeongbuk Provincial Government Office and having a conversation with Lee Cheolwoo, Governor of Gyeongbuk Province.

Governor Lee Cheolwoo expressed the following view: "While I agree on the need for investment for the nation's future, I cannot support a funding method that comes at the expense of reducing local governments' own revenue sources. Reducing resources available for autonomous use by local governments, only for the central government to redistribute them, does not align with the purpose of local autonomy."

He also voiced concerns that, given Gyeongbuk Province is expected to have the largest reduction in general allocation tax among metropolitan governments nationwide—likely exceeding 4.5 trillion won—the resulting decrease in allocation could significantly burden the region's key projects and overall administrative services for residents, as well as the local government’s fiscal health.

Gyeongbuk Province requested that instead of reducing the allocation tax to secure funding for national projects, the government should consider measures such as raising the local allocation tax rate, so that central and local governments can work together financially to carry out governmental tasks. The provincial government urged active support from the central government to ensure collaboration and guarantee both financial conditions and local autonomy, enabling the nation and localities to prepare together for the future.

Governor Lee Cheolwoo stated, "True local autonomy means ensuring a stable financial foundation so that local governments can design and invest in their own regional future. The Future Response Fund should be promoted in a way that both the nation and local governments share fiscal responsibility together."

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