[Interview] Kim In-ho, Chair of Seoul Metropolitan Council: "The Core of Next Year's Budget Review is 'Post-19 Response and Livelihood Stability'"

"Due to the resurgence of COVID-19, small business owners and self-employed individuals are suffering greater damage, so more proactive support measures must be prepared... Amid the unprecedented situation of market vacancies and COVID-19, the Seoul Metropolitan Council also has the duty to work together to ensure Seoul city administration remains stable."

[Asia Economy Reporter Jong-il Park] “The 2021 budget review inevitably has to be conducted within the broad framework of ‘responding to COVID-19 and preparing for the post-COVID era’ and ‘stabilizing people’s livelihoods.’”

Kim In-ho, Chairperson of the Seoul Metropolitan Council, recently emphasized in an interview, “I believe next year’s budget must be formulated more effectively and efficiently than ever by carefully selecting key tasks. While Seoul faces numerous challenges next year such as the prolonged COVID-19 pandemic, unprecedentedly depressed local economy recovery, and strengthening infectious disease management systems, we must also consider the fact that Seoul’s fiscal soundness is deteriorating.”

In particular, the Seoul Metropolitan Council felt the need to prepare more proactive support measures as small business owners and self-employed individuals are suffering greatly due to the resurgence of COVID-19. Accordingly, they proposed to the city the extension of the shared property rent reduction system and support for emergency employment subsidies.

Chairperson Kim stated, “The Seoul Metropolitan Council shares joint responsibility for Seoul. Amid the unprecedented situation of the mayor’s vacancy and COVID-19, the council has the duty to work together to ensure Seoul’s administration remains stable.” The council promised to cooperate and assist so that the executive branch under the acting authority system can operate consistent city governance and actively respond to livelihood stabilization and COVID-19 until April next year.

- It has already been almost 100 days since your inauguration. Could you share your reflections so far?

▲ I have felt a heavy responsibility since taking office due to the severe spread of COVID-19 and the vacancy of the Seoul mayor. Especially with the resurgence of COVID-19 and economic stagnation, the anxiety of the ten million citizens has increased. As the representative of the city council, I only think about quickly overcoming the citizens’ crisis and stabilizing their livelihoods. Together with the 110 Seoul council members, the Seoul Metropolitan Council will put our heads together and do our best for the citizens’ stability.

The past three months have been extremely busy in many ways. I have diligently visited various sites to check on Seoul’s current issues and prepare countermeasures. I conducted on-site inspections related to COVID-19, such as visiting the Disaster and Safety Countermeasures Headquarters and local traditional markets. I also inspected drainage facilities and construction sites in preparation for flood and wind damage. Recently, I met with merchants affected by the fire at Cheongnyangni Market and discussed support measures on the spot. As a ‘field-oriented chairperson,’ I will continue to directly manage urgent issues across Seoul and listen carefully to the voices of citizens in difficulty.

- Many citizens are still struggling as COVID-19 continues. What activities is the Seoul Metropolitan Council undertaking to support Seoul citizens, especially small business owners?

This year, four supplementary budgets have been passed. Among them, the second supplementary budget was survival funds for self-employed and small business owners. This was active support through direct cash assistance to enable them to continue their businesses. In addition, a low-interest loan program is currently ongoing. Due to business restrictions from social distancing, loans with ultra-low interest rates starting at 0% are being provided up to 100 million KRW for restaurants, karaoke rooms, PC rooms, and others that suffered damage.

However, the Seoul Metropolitan Council believed that more proactive support measures were necessary as the resurgence of COVID-19 has increased damage to small business owners and the self-employed. Accordingly, they proposed to the city the extension of the shared property rent reduction system and support for emergency employment subsidies.

Seoul City and the council agree that additional support for small business owners and the self-employed is necessary by any means. In particular, I understand that Seoul City is positively reviewing the extension of the shared property rent reduction.

Fortunately, the central government is committed to saving small business owners and the self-employed by providing a second round of disaster relief funds and expanding low-interest loan programs. (Since September 23, the second financial support loan limit has been increased to 20 million KRW, and those who received the first loan can receive overlapping support.) We welcome the central government’s active support policy and will carefully examine whether there are any other blind spots at the local government level.

- The Seoul Metropolitan Council has formed a budget and accounts committee and is beginning the review of the new year’s budget. What are the main points of the 2021 budget review?

▲ Unless a vaccine is developed, the COVID-19 crisis is expected to continue into next year. Given that four supplementary budgets were made this year alone under the name of COVID-19, the 2021 budget review inevitably has to be conducted within the broad framework of ‘responding to COVID-19 and preparing for the post-COVID era’ and ‘stabilizing people’s livelihoods.’

Also, I believe next year’s budget must be formulated more effectively and efficiently than ever by carefully selecting key tasks. While Seoul faces numerous challenges next year such as the prolonged COVID-19 pandemic, unprecedentedly depressed local economy recovery, and strengthening infectious disease management systems, we must also consider the fact that Seoul’s fiscal soundness is deteriorating. We must consider budget formulation that is as efficient as possible while being democratic.

In particular, I think the social safety net strengthening items should be expanded in next year’s budget. Everyone is in a difficult situation, but vulnerable groups are hit hardest by this huge crisis. More support for the livelihoods and education of vulnerable groups is needed, and support for small business owners and micro self-employed whose survival is shaken is necessary to restore vitality to the depressed local economy.

The executive branch will submit the 2021 budget to the council in November. Specific points of the budget review can be confirmed then.

- With the mayor’s vacancy, Chairperson Kim In-ho’s role is becoming more important than ever. What is your view on this?

▲ The Seoul Metropolitan Council shares joint responsibility for Seoul. Amid the unprecedented situation of the mayor’s vacancy and COVID-19, the council has the duty to work together to ensure Seoul’s administration remains stable. The council will cooperate and assist so that the executive branch under the acting authority system can operate consistent city governance and actively respond to livelihood stabilization and COVID-19 until April next year.

First, due to the mayor’s vacancy, the council will do everything possible to ensure Seoul’s projects do not lose direction or purpose.

For example, the Youth Center and Seoul Youth Citizens’ Council were key projects of the late Mayor Park Won-soon to reflect the voices of the younger generation in city policies. Since young people’s ideas are needed in many policies, the Seoul Metropolitan Council is working hard to ensure Seoul’s youth projects do not drift.

The ‘Partial Amendment to the Youth Basic Ordinance’ and the ‘Seoul Youth Participation Activation Support Ordinance,’ which regulate increasing youth participation in policy decisions, passed the council in September. Our council will continue to support projects that embody values and innovation that must not be rolled back.

Furthermore, to ensure the acting authority system of Seoul City does not lose strength, the council will propose various measures whenever urgent issues arise.

In August, to help flood-affected areas and strengthen inter-regional cooperation, the council proposed emergency relief supplies support to Seoul City. Seoul City invested a total of 600 million KRW from the external cooperation fund to assist seven cities and provinces affected by flood damage.

Recently, as the resurgence of COVID-19 has increased business damage to small business owners and the self-employed, the council urged Seoul City to prepare practical support measures.

- Despite the mayor’s vacancy, Seoul City appears to be responding systematically to COVID-19. How do you evaluate this?

▲ Seoul City faced a crisis as confirmed cases surged after the August 15 Liberation Day rally. However, I believe Seoul City has made the best efforts with rapid responses to ensure citizens’ safety. For two weeks after Liberation Day, Seoul City issued gathering restriction orders for all religious facilities, entertainment venues, karaoke rooms, PC rooms, etc. in the city. All gatherings of 10 or more people were banned, and Hangang Park was controlled, implementing measures equivalent to social distancing level 3. Strong responses also prevented rallies on National Foundation Day. Due to Seoul City’s response, the serious spread has been curbed again. As of the 5th, confirmed cases in Seoul have decreased to 15.

Seoul City’s quarantine excellence is recognized worldwide. In September, former UK Prime Minister Theresa May visited Seoul City to learn about COVID-19 response know-how. At that time, Seoul City explained its 3T quarantine system (Testing-Confirming → Tracing → Treatment-Isolation), drive-through screening clinics, free preemptive testing, big data epidemiological investigations, and other COVID-19 response policies. Livelihood policies such as disaster relief funds and survival funds for self-employed were also introduced. Despite being a mega-city with a population of ten million, Seoul City is showing strong and systematic responses in this unprecedented COVID-19 situation.

Of course, I think more detailed livelihood measures are needed in the prolonged COVID-19 situation. Although all citizens’ lives cannot be stable amid this great transformation, reducing citizens’ anxiety and ensuring safety and livelihoods is the role of the state and local governments.

- What do you see as the current problems in Seoul City administration?

▲ Due to COVID-19, I understand that several public sector projects are running deficits. Among them, the semi-public bus system, which has been controversial for many years, needs further consideration for improvements.

This year, Seoul City’s support funds to the city bus industry are expected to exceed 600 billion KRW, the highest since the semi-public bus system was implemented in 2004. While understanding the sharp decline in transportation revenue due to COVID-19, Seoul City is also struggling to secure funds. However, increasing transportation fares to burden citizens who are already struggling due to the prolonged pandemic is not an option.

Therefore, the system needs to be reviewed again. Recently, news reported that Seoul bus companies received financial subsidies from the city but paid more to executives’ salaries and less to regular employees. This indicates problems in bus company management but also points to lax supervision by Seoul City.

However, with the current mayor’s vacancy, it is difficult to immediately revise the system. I hope that when a new mayor is elected in the first half of next year, a more concrete discussion forum on public sector deficit issues will be established.

- Please share your views on reforming the Seoul Metropolitan Council.

▲ For local councils to be reformed, both self-initiated efforts by the council and institutional support are necessary.

First, internal efforts are essential to gain citizens’ trust. Even with limitations, the council must always keep a watchful eye on city administration, represent citizens as much as possible, and build a council that is honest and professional.

As part of these efforts, we are currently collecting citizen reports ahead of this year’s administrative audit. This is to gather more citizen opinions on unfair matters in city administration. We will listen more closely to citizens’ voices and faithfully fulfill our role as watchdogs and responsible parties of city administration.

At the 297th extraordinary session, the Seoul Metropolitan Council’s Code of Conduct Ordinance was passed. It includes provisions to protect victims and prevent secondary damage in cases of sexual harassment or assault by council members or council staff during official duties. We will continue efforts to improve council integrity through various ordinances and education.

We plan to strengthen media relations to become a council that communicates with citizens and is trusted by them. As part of this, we appointed two spokespersons. They will serve as communication channels with the media and citizens so that the council’s legislative and policy activities can be shared with more citizens.

Furthermore, to establish the identity of local councils as ‘watchdogs and representative bodies of residents,’ institutional improvements are necessary. I believe ‘guaranteeing council independence’ and ‘enhancing the quality of council activities’ are urgent. Under the current system, council members cannot freely hire aides, council staff are appointed by the mayor, and the council budget cannot be freely allocated, limiting the full exercise of local councils’ roles and functions. The Seoul Metropolitan Council, as the leading local council, will do its utmost to ensure the Local Autonomy Act amendment bill passes this National Assembly session.

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