Daejeon City’s Budget for Next Year 6.5 Trillion Won, Down 0.4% from Previous Year

Daejeon City has prepared a budget plan worth 6.533 trillion KRW for next year and submitted it to the Daejeon City Council.

According to Daejeon City on the 12th, next year’s budget plan is composed of 5.4677 trillion KRW in the general account and 1.0653 trillion KRW in the special account. The total budget size decreased by 28.7 billion KRW (0.4%) compared to last year’s original budget.

This is the first time since the implementation of the project budget system in 2008 that Daejeon City’s fiscal growth rate based on the original budget has declined. Daejeon City explained that this is largely due to a decrease in local taxes and ordinary grants, which account for 50-60% of the revenue budget.

In response to the revenue decrease, Daejeon City plans to explore strategic use of local bonds in the future.

The formulation of next year’s budget focuses on selective and concentrated investment in the 8th elected mayor’s pledge projects through tight fiscal management and efficient financial operation, strengthening support for small business owners, self-employed people, youth policies, childcare, and socially vulnerable groups facing difficulties due to the economic downturn, as well as investment in revitalizing the local economy and fostering strategic industries such as future new industries.

First, Daejeon City allocated 190 billion KRW in the budget for 71 major pledge projects of the 8th elected mayor, including ▲Baseball Dream Park construction (45 billion KRW) ▲Anyoung Sports Facility Complex construction (12.7 billion KRW) ▲Free transportation support for seniors (13.3 billion KRW) ▲Defense Industry Innovation Cluster project (5.2 billion KRW) ▲Daejeon Midnight Festival (4.9 billion KRW) ▲Private kindergarten early childhood education support (11.4 billion KRW) ▲Daycare center early childhood education support (8.4 billion KRW) ▲Oncheon District tourism hub development (3.2 billion KRW).

To support small business owners and the self-employed, the city will implement projects such as ▲Interest subsidy for small business management improvement funds (18.3 billion KRW) ▲Modernization of traditional markets and shopping districts (4.5 billion KRW) ▲Construction of a large bus parking lot at Jungang Market (7.1 billion KRW) ▲Fixed incentive payments from the Yellow Umbrella Mutual Aid Association (1.5 billion KRW) ▲Operation of the self-employed doctor system (1.5 billion KRW) ▲Wage support for micro self-employed workers (1 billion KRW).

Youth policies included in the budget plan are ▲Construction of youth rental housing ‘Dagaon’ (9.7 billion KRW) ▲Youth monthly rent support (5.9 billion KRW) ▲Future Double Youth Savings Account (2.6 billion KRW) ▲Daejeon-style Co-op youth new leader training (2 billion KRW) ▲Interest support for youth housing lease deposits (2 billion KRW) ▲Temporary special support for youth monthly rent (1.3 billion KRW).

Daejeon City will also expand investment in supporting local companies and fostering future strategic industries such as new industries.

For this, the budget includes ▲Interest subsidy for small and medium enterprise management stabilization funds and startup funds (13 billion KRW) ▲Land acquisition costs for foreign investment zones (8.8 billion KRW) ▲Cleanroom construction for semiconductor industry-academia research and corporate support (3.6 billion KRW) ▲Fostering leading companies in the secondary battery industry (2 billion KRW) ▲Advanced sensor device manufacturing and reliability support platform construction project (1.7 billion KRW) ▲Creation of an innovation base for the space industry (2 billion KRW) ▲System semiconductor technology support project (1 billion KRW) ▲Creation of an innovation base for the Daejeon quantum industry (0.5 billion KRW).

Additionally, the budget plan reflects projects to improve regional transportation and logistics infrastructure, including ▲Construction of Urban Railway Line 2 (38.3 billion KRW) ▲Phase 1 construction of the Chungcheong Regional Metropolitan Railway (15.7 billion KRW) ▲Subsidy for hydrogen bus purchases (2.5 billion KRW) ▲Construction of Hoedeok IC (14.5 billion KRW) ▲Expansion of the road from Seodaejeon IC to Dugye 3-ga (6.8 billion KRW).

The budget plan for next year is expected to be finalized on the 15th of next month after approval by the Daejeon City Council.

Mayor Lee Jang-woo of Daejeon said, “Daejeon City has completed the formulation of next year’s budget with a focus on revitalizing the local economy and fostering strategic industries. We will also ensure that support for small business owners, the self-employed, and socially vulnerable groups is not neglected.”

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