Gyeongbuk Province Draws Up KRW 14.8535 Trillion Budget for Next Year, "Boldly Cutting Routine Spending"

Gyeongsangbuk-do Province said on November 12 that it had drawn up a 2027 revenue and expenditure budget proposal totaling KRW 14.8535 trillion and submitted it to the Gyeongbuk Provincial Council.

The 2027 budget proposal is up KRW 817.2 billion (5.8%) from the previous year. The general account increased by KRW 641 billion (5.2%), while the special account rose by KRW 176.2 billion (10.5%).

Gyeongbuk-do's Budget Proposal for Next Year

National subsidies for the general account amount to KRW 7.6657 trillion, up KRW 614.4 billion (8.7%) from the previous year. The province's matching contribution also increased as government-subsidized projects expanded.

Gyeongbuk Province said, "In drawing up the budget proposal, we focused on allocating resources efficiently, including by restructuring projects based on their performance and effectiveness, to overcome structural fiscal difficulties caused by continued growth in statutory and mandatory spending, such as government-subsidized projects. We streamlined underperforming and inefficient projects, curbed nonessential spending such as one-off events and excessive investment in facilities, and focused allocations on the people's livelihoods and future growth."

With the goal of "a major transformation of Gyeongbuk that energizes people's livelihoods and adds momentum to future growth," the 2027 budget proposal focuses investment on four key areas to restore the local economy and establish a foundation for sustainable regional growth: ① industrial transformation, ② transformation of people's livelihoods, ③ spatial transformation, and ④ community transformation.

As artificial intelligence (AI) emerges as a key source of competitiveness across industries, the province will focus investment on projects to accelerate the digital transformation of local industries, including △the Pohang NEO AI Data Center (KRW 4 billion), △support for AI industry growth based on small-scale data centers (KRW 3.27 billion), and △the establishment of a Gyeongbuk AI Transformation (AX) demonstration industrial complex (KRW 11.14 billion).

Investment will also expand in advanced industries such as semiconductors, bio, and robotics. The province plans to strengthen core technological capabilities and enhance the competitiveness of its strategic industries through projects including △building a self-sufficient K-semiconductor ecosystem (KRW 5.92 billion), △fostering a global healthcare biomedical engineering research institute (KRW 10.36 billion), and △fostering leading companies in Gyeongbuk's robotics industry (KRW 450 million).

Support will also be expanded to ease the burden on small business owners struggling with high prices and rising operating costs. Projects including △the specialized market development program (KRW 2.25 billion), △the Small Business New Breeze Change-Up program (KRW 500 million), and △credit card fee support for microbusiness owners (KRW 1.8 billion) will help stabilize small businesses and strengthen the self-sufficiency of traditional markets.

To build a global economic zone linking two ports and strengthen the region's transportation and logistics competitiveness, the province will focus on projects including △developing a new growth airport economic zone for the new airport era (KRW 200 million), △supporting cargo attraction at Yeongilman Port in connection with Arctic routes (KRW 900 million), and △promoting the use of Pohang-Gyeongju Airport (KRW 600 million).

The province will also expand the foundations for growth by making use of the distinct characteristics of each rural and fishing community. It plans to boost the competitiveness of agriculture and fisheries and bring new vitality to the local economy through projects including △establishing and supporting the settlement of Gyeongbuk-style joint farming pilot districts (KRW 1.5 billion), △promoting tourism in wildfire-affected areas and the northern region (KRW 5.1 billion), and △building a comprehensive smart seafood processing complex (KRW 3.17 billion).

Following the selection of Gyeongkuk National University for a national medical school, a long-standing local priority, the province will provide KRW 9.35 billion for land acquisition to move forward with establishing the medical school. It will also accelerate efforts to complete a regionally self-sufficient, 24-hour healthcare system through projects including △strengthening public healthcare cooperation (KRW 15.96 billion) and △establishing a regional essential medical care network for pediatric and critically ill emergency patients (KRW 2.4 billion).

Gyeongbuk Governor Lee Cheolwoo said, "Although local government finances are becoming increasingly difficult, we cannot stop investing to protect residents' livelihoods and prepare for Gyeongbuk's future. This is an important time to focus investment on areas where future generations can continue to benefit, rather than spending limited resources on one-off consumption."

Lee added, "With this budget proposal, we plan to boldly reduce routine spending and concentrate resources on restoring the local economy, creating jobs, and securing future growth engines, including AI and advanced industries."

The 2027 budget proposal submitted by Gyeongbuk Province is expected to be finalized on December 9 after review by the provincial council's standing committees and Special Committee on Budget and Accounts.

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