Kim Dong-yeon: "Despite 1.9 trillion won tax revenue decrease, we will pursue livelihood, expansion, and proactive fiscal policy"

Budget of 33.95 trillion won, 1.4 trillion won more than the original 33.81 trillion won
Governor and department heads to cut business promotion expenses by 10-20% for expenditure restructuring
Government criticized for complacent policies despite Japan surpassing growth rate

Gyeonggi Province Governor Kim Dong-yeon is holding a press conference on the 25th.

Gyeonggi Province Governor Kim Dong-yeon promised to consistently pursue 'people-centered finance, proactive finance, and expansionary finance' through next year's main budget so that the expanded supplementary budget becomes a lever for economic virtuous cycles. He also announced that this year's first supplementary budget was set at 33.95 trillion won, 140 billion won more than the original main budget of 33.81 trillion won.

At a press conference on the '2023 First Supplementary Budget' held on the 25th at the Gyeonggi Provincial Government briefing room, Governor Kim Dong-yeon diagnosed the current economic situation, saying, "In the first quarter of this year, after the financial crisis, we were overtaken by Japan in economic growth rate for the first time. The bigger problem is that small business closure applications increased by 50% compared to last year, SME loan delinquency rates nearly doubled, household real income fell the most since 2006, household debt exceeded 100% of GDP, and interest rates rose, increasing household interest burdens."

He particularly analyzed, "Gyeonggi Province accounts for the largest share in South Korea in terms of population, economic and industrial scale, and exports, so it is suffering the greatest impact. Gyeonggi's exports have decreased for 12 consecutive months, and semiconductors, which make up one-third of exports, are struggling due to recession and reduced exports to China."

Governor Kim said, "(Considering this situation) now is the time for finance to play an active role," adding, "During economic downturns, finance should be expanded to stimulate the economy, and during economic upturns, finance should be reduced to maintain balance. However, looking at the current government, not only is the economy struggling, but there is also a failure to properly recognize this situation."

He also pointed out, "Other policies, including fiscal policy, are not heading in the right direction," and criticized, "The government did not even prepare a supplementary budget under the name of fiscal soundness."

However, Governor Kim emphasized, "Unlike the government, Gyeonggi Province will pursue people-centered finance instead of sound finance, proactive finance instead of passive finance, and expansionary finance instead of austerity finance. We will consistently maintain this fiscal policy stance through next year's main budget and make the expansionary supplementary budget a lever for economic virtuous cycles."

He added, "Due to the economic downturn, Gyeonggi's tax revenue decreased by 1.9292 trillion won, requiring a significant reduction supplementary budget, but we will do our best for expansionary finance by securing 160.9 billion won through strong expenditure restructuring, such as tightening belts in the public sector."

Furthermore, he promised, "When tax revenue decreases, the public sector must take the lead in expanding finance. We will cut business promotion expenses for executives at the director level and above by 10% and reduce the governor's business promotion expenses by 20%. In addition, we will reduce all expenses including domestic travel expenses, office management costs, reward expenses, and other personnel salaries."

Governor Kim stressed, "Through this, we will secure growth engines," explaining, "We will invest 120 billion won in road construction to alleviate traffic inconveniences for residents caused by delays in the local road corporation, and supply a 50 billion won startup fund to revitalize the startup ecosystem struggling in the high-interest era."

He also added, "We will support 430 billion won in operating funds for small and medium export companies to ease management burdens during difficult times, and promote financial cost relief through 900 billion won in special guarantees, repayment deferrals, low-interest loans, and refinancing support for small business owners. Additionally, 28.4 billion won will be allocated to support medical services for low-income vulnerable groups such as beneficiaries and national veterans."

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