Pohang City Drafts 2.64 Trillion Won Budget for Next Year, 1.54% Increase from This Year

Overcoming Financial Difficulties: Comprehensive Reduction of Business Promotion and Event Operation Expenses, Reassessment of All Projects from the Ground Up

Focus on Realizing Core Tasks such as Safe City, Welfare for the Vulnerable, People-Cente

Pohang City has prepared a budget of 2.64 trillion KRW for next year, an increase of 40 billion KRW (1.54%↑) compared to this year's original budget, and submitted it to the Pohang City Council.

Pohang City Hall.

The general account of the 2024 original budget (draft) was set at 2.3258 trillion KRW, an increase of 80.8 billion KRW (3.60%↑) compared to the 2023 original budget, while the special account was set at 314.2 billion KRW, a decrease of 40.8 billion KRW (11.49%↓).

Next year's general account revenue decreased in locally autonomous resources such as local allocation tax and local taxes due to the domestic economic downturn, but national and provincial subsidies increased by 95 billion KRW compared to this year, resulting in an overall increase in the budget size.

As a self-help measure to overcome difficult financial conditions, the city implemented strong expenditure restructuring by uniformly reducing business promotion expenses by 10-20%, event operation expenses by 10%, setting local subsidies within departmental limits, allocating resources according to investment timing, and re-examining all projects from scratch.

The main direction of expenditure budget formulation focused on maintaining a sound fiscal policy amid difficult financial conditions, concentrating on five key investment areas: ▲transition to a safe city ▲strengthening welfare for the vulnerable ▲creating a people-centered city ▲culture and tourism ▲preparing for the future.

Key budget items include allocating 33.2 billion KRW for disaster and hazard prevention and risk area maintenance, 28.8 billion KRW for urban flood prevention in management areas, 6.8 billion KRW for safety inspections and repairs, and 4.9 billion KRW for installing disaster, crime prevention, and child protection CCTV to realize a safe city prioritizing citizens' safety.

To realize welfare of sharing and coexistence for all, 313.7 billion KRW was allocated for senior citizen jobs and basic old-age pensions, 131.5 billion KRW for national basic livelihood security recipients, 96.8 billion KRW for support projects for the disabled and organizations, and 9.2 billion KRW for first meeting and childbirth encouragement grants.

Additionally, to create a carbon-neutral green & clean eco-friendly city and revitalize rural and fishing villages, 20.6 billion KRW was allocated for building a hydrogen transportation complex and hydrogen vehicle distribution projects, 19.9 billion KRW for expanding and creating conditions for eco-friendly agriculture, 12.7 billion KRW for fine dust blocking forests, urban forests, and forest trails, and 10.4 billion KRW for supporting farmers and fishermen allowances.

For the creation of an East Sea Rim cultural tourism city, 7 billion KRW was allocated for a dedicated park for community sports and a park golf course, 3 billion KRW for cultural city creation projects, 2.7 billion KRW for the municipal art museum and Odori columnar joint project, and 2.5 billion KRW for improving facilities of the cultural and arts center's small performance hall.

To secure industrial and technological competitiveness and drive future growth engines, 50 billion KRW was invested in the development of Yeongilman 4 general industrial complex, 41.9 billion KRW for the construction of Pohang International Exhibition & Convention Center, 9 billion KRW for supplying industrial water to Yeongilman general industrial complex, and 8.7 billion KRW for establishing a battery inline automatic evaluation center.

Mayor Lee Kang-deok said, “Although tax revenue will sharply decrease again next year following this year, and financial conditions are not favorable, we will overcome the difficult situation by efficiently managing resources through high-intensity restructuring,” adding, “Despite difficult conditions, we have allocated the budget to essential areas such as key city administration projects to ensure that major projects achieve early results.”

The submitted 2024 original budget (draft) will be reviewed at the 311th regular session of the Pohang City Council starting November 30 and finalized on December 20.

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