Mayor Park Seungwon of Gwangmyeong: "Leisure Tax Grants Should Also Be Distributed to Local Governments Hosting Main Venues"

Mayor Park Urges Chairman Shin Junghoon to Amend the Law
Calls for Fair Distribution of Leisure Tax Adjustment Grants

Gwangmyeong Mayor Park Seungwon has formally requested the National Assembly to promptly revise the law to ensure fairness in the distribution of leisure tax adjustment grants.

On July 29, Mayor Park met with Shin Jung-hoon, Chairman of the National Assembly Public Administration and Security Committee, and officially proposed legislation to address this issue.

Mayor Park stated, "The Local Finance Act currently distributes leisure tax adjustment grants only to local governments with off-track betting facilities for cycle racing, motorboat racing, and horse racing. However, cities and counties that actually host the main venues do not receive these adjustment grants, resulting in reverse discrimination." The main venue refers to the primary stadium where the actual races take place, while off-track betting facilities are separate outlets where people can watch race broadcasts and purchase betting tickets.

He added, "The criteria for distributing adjustment grants should be improved to ensure fairness, thereby easing the financial burden on local governments hosting the main venues."

According to the Local Finance Act, only cities and counties with off-track betting facilities are eligible to receive adjustment grants, which account for 20% of the leisure tax.

According to the city, in 2023, Gwangmyeong, which hosts the Gwangmyeong Velodrome, collected 73 billion KRW in leisure tax but received only 6.81 billion KRW (9.3%) as collection grants. In contrast, another city in Gyeonggi Province with an off-track betting facility collected only 20 billion KRW in leisure tax but received 5.67 billion KRW (28.3%) through both adjustment and collection grants.

Previously, Lim Ohkyung, a National Assembly member representing Gwangmyeong-gap, along with 10 other lawmakers, submitted a bill to the National Assembly proposing that local governments with main venues also receive 20% of the adjustment grants. The amendment is currently under review by the Subcommittee on Bill Review No.1 of the Public Administration and Security Committee.

The city believes that if this amendment is passed, it will not only secure financial stability for the city but also help reduce social costs such as traffic congestion, parking issues, and gambling addiction associated with hosting the main venue.

Mayor Park stated, "When the velodrome was built, Gwangmyeong City provided public land free of charge and has since borne various social costs. For sustainable local finance and citizen welfare, it is essential to rationally improve the adjustment grant system."

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