Incheon Sets Record 15.9 Trillion Won Budget for Next Year; Social Welfare Spending Up 10%

Incheon e-Eum cashback: 210 billion won fully allocated, with 10% cashback year-round
316.6 billion won to foster advanced industries, including the flagship "ABC + E" initiative

Incheon has drawn up its main budget for next year at a record-high level.

The city announced on November 5 that it had drawn up a 2027 main budget proposal of 15.9 trillion won, up 574 billion won (3.8%) from this year's 15.326 trillion won. The general account totals 12.1533 trillion won, while the special accounts total 3.7467 trillion won.

Own-source revenue, including local taxes and non-tax revenue, was set at 6.8744 trillion won, up 27.6 billion won (0.4%) from last year. Revenue from external sources, including local shared taxes and subsidies, was set at 7.0769 trillion won, an increase of 780.1 billion won (12.4%).

Issuance of local bonds was set at 324.7 billion won, down 39.9 billion won (10.9%) from the 364.5 billion won in this year's main budget. The managed debt ratio is expected to rise from 13.6% based on this year's second supplementary budget to 15.6% next year.

Incheon Mayor Park Chan-dae explains the city’s 2027 budget proposal at the briefing room in City Hall on the 5th. Photo provided by Incheon Metropolitan City.

The city will invest 8.2 trillion won in helping households recover and strengthening welfare that people can feel in their daily lives. The social welfare budget totals 6.9678 trillion won, up 10.1% from this year and accounting for 43.8% of the overall budget. The city will continue tailored support for each stage of life and protection for vulnerable groups, while focusing on easing the burden on households.

In particular, the budget for cashback benefits on Incheon e-Eum, the local currency card, will cover all 12 months next year, with 210 billion won allocated. The cashback benefits were suspended for about two months this year after the budget ran out. The 10% cashback rate at participating businesses with annual sales of 3 billion won or less will remain in place, while the monthly spending limit eligible for cashback will rise from 300,000 won to 500,000 won.

The city allocated 654.3 billion won to support the recovery of local livelihoods among small business owners and rural and fishing communities. It will help stabilize neighborhood businesses with 10 billion won in contributions for special guarantees for small business owners and 12.6 billion won in interest subsidies. It will also improve living conditions in fishing villages through the Fishing Village Vitality Enhancement Project (6.2 billion won) and the Fishing Village New Deal 3.0 project (4.55 billion won).

For childbirth and child-rearing, the budget includes 46.9 billion won for the Angel Support Grant, 35.4 billion won for the Childcare Support Grant, 14.8 billion won for the Basic Child Allowance, 12.9 billion won for marriage support grants, and 7.2 billion won for transportation costs for pregnant women. Eligibility for the 1.5 million won postpartum care support will be expanded from households earning no more than 60% of the median income to those earning no more than 70%. The city also newly allocated 2 billion won for a youth savings program to help young people build assets.

To help young people achieve housing stability and independence, the city will allocate 12.2 billion won for monthly rent support and 4.3 billion won for the Dream for Youth Account for employed young adults. It has also set aside 8.4 billion won for the 1,000-Won Housing program for newlyweds, 3 billion won for interest support on 1.0 loans for households with newborns, and 3.7 billion won to support victims of jeonse fraud. A total of 391.7 billion won has been allocated for housing stability programs, including housing benefits and purchased and jeonse rental housing.

Incheon-style SOS emergency welfare support will be provided to 2,548 people in crisis-stricken households who do not meet national support criteria, and the city will add 12 billion won in municipal funds to expand activity support for people with severe and most severe disabilities. Although the government's fire safety grant has decreased, the budget for the special account for firefighting has been increased by 28.5 billion won from this year to a total of 477 billion won.

The city plans to invest 316.6 billion won in fostering advanced industries, including the mayor's flagship ABC (artificial intelligence, bio, and culture) + E (energy) initiative, and 268.7 billion won in the growth of small and venture businesses and job creation.

The city will invest 2.4 trillion won in expanding transportation infrastructure and revitalizing the old city center. It will allocate 1.1384 trillion won to build metropolitan transport networks and key transportation facilities, 997.4 billion won to support the use of urban transportation, and 228.7 billion won to revitalize the old city center, aiming to improve mobility and promote balanced regional development.

Incheon Mayor Park Chan-dae said, "The next year's budget proposal reflects our commitment, guided by the principle of 'sustainable city administration,' to protect residents' daily lives and help Incheon realize its true worth. We will responsibly manage the budget to ensure stable financial support for residents' needs and timely investment in future growth."

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