Jeongeup-si Records 5.39 Billion Won in Public Deposit Interest Income Last Year

Published 29 May.2024 10:33(KST)

Jeongeup City in Jeonbuk announced on the 29th that its general account public deposit interest income last year reached a record high of 5.39 billion KRW.

According to the detailed breakdown of interest income for 2023 disclosed by the city, it includes ▲fixed deposit interest of 5.24 billion KRW ▲integrated account interest of 150 million KRW, totaling 5.39 billion KRW. This is an increase of 2.39 billion KRW compared to the previous year and represents the largest revenue scale ever recorded.

Jeongeup City Hall. [Photo by Jeongeup City]

The city's public deposit interest income has risen significantly since the launch of the 8th local government administration.

Looking at the city's recent public deposit interest income, it recorded 2.4 billion KRW in 2018, 3.2 billion KRW in 2019, 3.6 billion KRW in 2020, and 1.9 billion KRW in 2021, averaging 2.775 billion KRW annually.

In 2022, the first year of the 8th local government administration, it recorded 3 billion KRW, an increase of 1.1 billion KRW from the previous year. Last year, following the Bank of Korea's base rate hike trend, the city actively managed general account funds to achieve 5.39 billion KRW, setting a new record high.

In particular, this year, through systematic fund management reflecting the liquidity of general account funds and interest rate conditions, it is expected to achieve 6.5 billion KRW, an increase of about 1.1 billion KRW compared to the previous year.

Following last year, it is expected to once again break its own record this year and significantly contribute to increasing the city's non-tax revenue.

In response to the recent sharp decrease in local allocation tax due to economic recession and stagnation, the city recognizes the need to secure stable independent financial resources and, in line with the high-interest financial environment, strategically deposits surplus funds in fixed deposits with high interest rates, considering this the optimal time to increase interest income.

Mayor Lee Hak-su stated, “We will thoroughly monitor interest rate fluctuations and strive to minimize public deposit balances and maximize interest income by timely placing surplus general account funds in fixed deposits through organic communication with the city treasury.”