Oh Sehoon Urges Deputy Prime Minister: "Seoul Bears Unique Fiscal Burden... National Subsidies Must Increase"

Request for Improvement of "Differential Subsidy Rate System"
Seoul Bears Annual Additional Burden of 3.17 Trillion Won
Only Applied to Seoul, Despite Similar Fiscal Conditions with Gyeonggi Province

On August 14, Seoul Mayor Oh Sehoon met with Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol to request improvements to the "differential subsidy rate system" for national subsidy projects, which currently applies only to Seoul.

According to the Seoul Metropolitan Government, during a meeting with Deputy Prime Minister Koo at the Government Complex Seoul that morning, Mayor Oh stated, "Although Seoul and Gyeonggi Province share the same living sphere and have similar population sizes, economic scales, and fiscal conditions, Seoul is the only region in the country where differential national subsidy rates are applied, resulting in an additional annual fiscal burden of approximately 3.17 trillion won."

Seoul Mayor Oh Sehoon met with Deputy Prime Minister for Economy Koo Yooncheol on the morning of the 14th to discuss improvements to the system applying differential subsidy rates for national subsidy projects. Seoul City

According to the "2025 Local Government Fiscal Capacity Index" calculated by the Ministry of the Interior and Safety, the fiscal capacity indices of Gyeonggi Province (main office: 1.180) and Seoul (1.032) are at similar levels, and both local governments are designated as non-recipients of the ordinary grant tax. In addition, over the past five years, the growth rate of the population and the number of businesses-which influence fiscal conditions-has been twice as high in Gyeonggi Province as in Seoul.

Nevertheless, in the recent "Livelihood Recovery Consumption Coupon Project," the national subsidy rate for Gyeonggi Province was 90%, whereas only 75% was applied to Seoul, meaning Seoul had to shoulder an additional 350 billion won compared to Gyeonggi Province, according to the city government.

Seoul is also concerned about a significant additional fiscal burden for the child allowance support project. If, in line with government policy, the national subsidy rate is lowered and the eligibility is expanded from children under 8 years old to those under 13, Seoul estimates it would require an additional 106.2 billion won next year and 283.6 billion won in 2030. Mayor Oh stated, "In order to maintain the functions of a major city, ensure citizen safety, and enhance urban competitiveness-including addressing the surging welfare expenditures due to low birth rates and an aging population, improving aging subway infrastructure, supplying long-term rental housing, and expanding stable housing supply-an increase in national subsidies is absolutely necessary."

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