Incheon City to Repay 270.9 Billion Won in Local Bonds Next Year... "Stable Debt Management"

Incheon City Hall

[Asia Economy Reporter Park Hyesook] Incheon City announced on the 31st that it plans to repay 270.9 billion KRW in local bonds next year, and has allocated the full amount in next year's city budget.

The total debt scale of Incheon amounts to 9.6 trillion KRW, combining the city's debt of 3.4 trillion KRW and the debts of five public corporations and industrial complexes totaling 6.2 trillion KRW, based on last year's fiscal settlement.

The city plans to reduce the debt management ratio from 14.6% this year to 13% next year and decrease the total debt scale to around 9.2 trillion KRW.

The city's plan for local bond issuance next year is a total of 175.4 billion KRW.

Among this, 158.9 billion KRW consists of regional development bonds, a kind of quasi-tax that must be compulsorily purchased when buying or transferring vehicle registrations, or when concluding various construction contracts, goods purchases, and service contracts. The remaining 16.5 billion KRW will be used as public funds for the creation of long-term unexecuted parks.

A city official stated, "Incheon City is currently managing its debts stably, and it is expected that there will be no significant impact related to the recent bond market instability."

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