Kim Kyung-ho, Gwangjin-gu Mayor, Prepares Supplementary Budget Proposal to Address High Inflation and Economic Downturn

The First Supplementary Budget Proposal of the 8th Elected Term: Key Points of Emergency Measures for the Livelihood Economy Amid High Inflation, Expansion of Special Loans for Small Business Owners, Additional Issuance of Gwangjin Sarang Gift Certificates Worth 10 Billion Won, and Swift Promotion of Priority Urban Development Projects Following the Launch of the 8th Elected Term

[Asia Economy Reporter Jongil Park] Gwangjin-gu (Mayor Kim Kyung-ho) has urgently prepared the 2022 2nd supplementary budget proposal amounting to 5.9 billion KRW to respond to the prolonged COVID-19 pandemic and the difficult livelihood economy caused by global high inflation and high interest rates.

This supplementary budget proposal totals 5.9 billion KRW, funded by an additional revenue budget of 3.5 billion KRW and 2.4 billion KRW secured through expenditure restructuring.

Among this, 4.09 billion KRW, accounting for 70%, was allocated to emergency livelihood economy measures to cope with high inflation and economic recession.

The supplementary budget proposal consists of ▲40.9 billion KRW for three livelihood economy projects including ‘Additional Support for Special Loans to Small Business Owners’ ▲1.83 billion KRW for nine key projects of the 8th term mayor’s administration such as ‘Establishment of the 2040 Gwangjin Plan’ to mark a turning point in Gwangjin-gu’s urban development ▲and 60 million KRW for other urgent budget needs.

First, to support the livelihood economy, the district will significantly expand the fund size of the ‘Small and Medium Enterprise Development Fund Loans’ from 3 billion KRW to 5 billion KRW. The loan limit will be raised from 100 million KRW to 300 million KRW to meet the demand for large loans from SMEs and small business owners facing financial difficulties.

In addition, an extra 1 billion KRW will be secured as a contribution to the Credit Guarantee Foundation to support interest-free special loans for small business owners, further expanding the loan fund available to our residents by approximately 12 billion KRW.

Moreover, Gwangjin Love Gift Certificates worth 10 billion KRW will be additionally issued entirely from the district budget, offering a 10% discount on purchase amounts to increase purchasing power amid high inflation, while promoting sales growth for local small businesses and creating a virtuous cycle for regional economic revitalization.

Furthermore, to improve the working environment of sewing companies, which hold a significant share in local manufacturing, the support budget was increased by 20 million KRW from the existing 80 million KRW to a total of 100 million KRW from the district budget. Additionally, 300 million KRW was secured from city government competitive projects, making a total of 400 million KRW for the working environment improvement project.

Second, the budget will be invested to promptly advance key projects for the development of Gwangjin in the 8th term mayor’s administration.

The related budget includes ▲700 million KRW for establishing the ‘2040 Gwangjin Plan’ for comprehensive revision of Gwangjin-gu’s urban planning ▲700 million KRW for ‘Renovation of Aging Public Sports Facilities’ and ‘Support for School Playground Maintenance’ ▲44 million KRW for operating the ‘One-Stop Comprehensive Support Center for Small Business Owners’ ▲23 million KRW for operating the ‘Gwangjin Development Communication Committee’ to communicate with residents and experts on local issues and promote Gwangjin’s development ▲and 230 million KRW in total for the ‘Senior Home Visit Health Management’ project utilizing AI and IoT technologies, including 80 million KRW from the district budget, totaling 9 projects with 1.83 billion KRW.

Lastly, 9 million KRW was allocated for mortuary support due to an increase in unclaimed deceased persons, and 23 million KRW for the designation and operation of a new integrated citizen health management center, totaling 60 million KRW for three urgent budget needs.

Kim Kyung-ho, Mayor of Gwangjin-gu, said, “It is natural to prioritize the health and safety of residents by closely monitoring various infectious diseases including COVID-19. Along with this, Gwangjin-gu will swiftly and actively respond by deploying all its capabilities to revitalize the local economy, which has been stagnated due to the difficult economic conditions of high inflation and high interest rates faced by residents.”

The 2022 2nd supplementary budget proposal will be reviewed and approved at the 254th Gwangjin-gu Council extraordinary session held over five days starting from the 18th, and will be finalized on July 22.

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