Seongbae Lee Elected Chair of Seoul Metropolitan Council Budget and Accounts Committee

[Asia Economy Reporter Park Jong-il] The Seoul Metropolitan Council appointed 33 members of the Budget and Accounts Special Committee, which will review and approve the budgets of the Seoul Metropolitan Government and the Seoul Metropolitan Office of Education for the next year, at the 311th extraordinary session held on the 21st, and elected Councilor Lee Seong-bae (People Power Party, Songpa 4) as the chairman.

Lee Seong-bae, chairman of the Budget and Accounts Committee, who is a re-elected councilor of the 10th and 11th Seoul Metropolitan Council, has previously served twice as a member of the Budget and Accounts Special Committee (’19. 8~’20. 9) in 2019 and 2022, as well as a member of the Planning and Economy Committee (’18. 7~’20. 7), and is recognized for his deep understanding of major issues and financial matters of Seoul.

In particular, Lee Seong-bae is the only councilor among the 76 People Power Party members elected in the June 1st 8th nationwide simultaneous local elections who has experienced the transitional period from the late Mayor Park Won-soon to the current Mayor Oh Se-hoon. He is considered the right person to lead the understanding between the ruling and opposition parties and coordinate opinions with the Seoul Metropolitan Government while reviewing the annual budget of approximately 60 trillion won prepared by the Seoul Metropolitan Government and the Seoul Metropolitan Office of Education.

Chairman Lee pointed out that even before Russia invaded Ukraine, major oil-producing countries were reducing production, but the war triggered by Russia has caused oil prices to rise to an unbearable level, leading to a sharp increase in consumer prices, and that the continuous upward adjustment of the base interest rate is increasing the burden of living expenses on citizens.

According to the consumer price trend announced by Statistics Korea in June, consumer prices surged by 6%, marking the highest increase since the foreign exchange crisis. With rising unemployment rates, rapid interest rate hikes (from 0.75% in August 2021 to 1.75% in May 2022), and other major economic indicators significantly affecting citizens' lives showing red flags, along with concerns about the resurgence of COVID-19, he repeatedly emphasized that the citizens' economic life is in a crisis situation.

Therefore, Chairman Lee stated that the second supplementary budget bill submitted by the Seoul Metropolitan Government on the 13th is an excellent opportunity to focus all efforts on stabilizing people's livelihoods. He emphasized that expenditures for livelihood stabilization should take priority, and that the supplementary budget should be reviewed and promptly approved with the citizens' benefits as the top priority, ensuring that the effects of fiscal spending are quickly delivered to the citizens through cooperation.

Chairman Lee also expressed the view that Seoul's tax revenue is inseparable from economic conditions, and if negative factors such as rising unemployment and consumer prices are not resolved, there is a possibility of long-term tax revenue decline. Therefore, he suggested that the Seoul Metropolitan Council and the Seoul Metropolitan Government should cooperate to proactively respond to potential fiscal crises.

For this reason, the 2023 budget of Seoul is expected to inevitably require large-scale budget allocations in welfare, economy, jobs, and quarantine sectors to stabilize people's livelihoods. He emphasized the need to secure fiscal stability through intensive restructuring of revenue and expenditure structures while also preparing available resources.

In particular, regarding revenue budgets, since the amount of unpaid local taxes reaches about 1 trillion won, he pointed out the urgent need to apply strict standards and actively collect unpaid amounts due to tax delinquency, and to secure as much national subsidies notified by the government to Seoul as possible, highlighting the necessity of active tax revenue efforts.

Furthermore, regarding expenditure budgets, he stated that it is necessary to thoroughly review from the beginning whether private subsidies and private consignment projects, which have been loosely managed so far, have been budgeted or supported redundantly or excessively. For projects of investment and contribution institutions, the possibility of integration or abolition of functions should be considered, and whether they generate their own income should be identified to reduce budgets. The budget size should be decided considering the urgency and necessity of projects, with support amounts scrutinized case by case, and efficiency maximized. He expressed his commitment to reviewing the budget according to the principles of budget formulation as a fiscal watchdog.

Chairman Lee said that the driving force of legislative activities lies in trust (信義), and he will strive to fulfill the role of a guardian of finances entrusted and trusted by fellow committee members and citizens without any shortcomings.

The newly formed 1st Budget and Accounts Special Committee of the 11th Seoul Metropolitan Council will, according to the Seoul Metropolitan Council Basic Ordinance, review the 2023 budget proposals of the Seoul Metropolitan Government and the Seoul Metropolitan Office of Education, fund operation plans for funds, approval of the 2022 fiscal year settlement, approval of contingency fund expenditures, approval of fund settlements, and other related matters after appointment.

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