Semiconductor Slump Hits Local Governments Too: "Suwon City Faces Financial Emergency as Samsung's Operating Profit Plummets 95%"

Suwon Mayor Lee Jae-jun is explaining Suwon City's financial situation at the '2023 2nd Quarter Party-Government Policy Meeting' held on the 23rd.

Suwon Mayor Lee Jae-jun met with local members of the National Assembly and urged them to "actively cooperate so that Suwon City can overcome its financial crisis."

At the '2023 2nd Quarter Party-Government Policy Meeting' held on the 23rd in the Suwon City Hall conference room, Mayor Lee explained, "Due to the downturn in the semiconductor market, Samsung Electronics' operating profit in the first quarter of this year decreased by 95% compared to the same period last year," adding, "It is expected that the corporate local income tax Samsung Electronics pays to Suwon will also significantly decrease, pushing next year's financial situation to the worst level."

He continued, "Although a financial crisis is approaching, we will do our best to overcome it," and added, "Please cooperate in securing national funds related to Suwon City."

He also requested, "On June 19, a forum discussing improvement measures related to the 'Capital Region Overcrowding Control Zone' will be held at the National Assembly. Please work together to address the issues."

The forum on that day is co-hosted by Assembly members Baek Hye-ryun, Kim Young-jin, and Kim Seung-won, and jointly organized by Suwon City, other local governments in the overcrowding control zone, and the Suwon City Policy Research Institute.

The current 'Capital Region Readjustment Planning Act' classifies Suwon City and 14 other cities in the province as 'Overcrowding Control Zones,' which results in higher costs such as additional taxation on real estate acquisition when establishing corporations compared to other zones. As a result, companies continue to relocate to areas outside the overcrowding control zone.

Meanwhile, the meeting was attended by Mayor Lee Jae-jun and Assembly members Park Kwang-on (Suwon City Administration), Baek Hye-ryun (Suwon City Eul), Kim Young-jin (Suwon City Byeong), and Kim Seung-won (Suwon City Gap).

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