Gumi City Nears 500 Billion Won Era in Local Tax Revenue

Increase in Corporate Local Income Tax Driven by Semiconductor Industry Recovery
Record-High Tax Revenue Projected
Corporate Support Policies Show Results, Financial Capacity Expands
Strategic Reinvestment in Roads, Transportation, Welfare, Youth, and Future Industries

The amount of local taxes collected in Gumi City, North Gyeongsang Province in 2026 is expected to reach 500 billion won. This represents an 8.6% increase from the previous year, marking the highest level ever recorded. As the performance of semiconductor materials and components companies has significantly improved, clear signs of recovery are emerging in the region’s tax revenue.

According to the city, the amount of local taxes collected in 2025 totaled 460.5 billion won. This is an increase of 68.2 billion won (17.4%) compared to 392.3 billion won in 2024. Of this, local income tax accounted for 228.2 billion won, representing 49.6% of total tax revenue, which was the highest proportion. Analysts attribute this to the direct impact of the regional industrial structure and corporate performance on tax revenue.

Factory Complex Panorama / Provided by Gumi City Hall

In 2023, the unprecedented recession and economic downturn in the semiconductor industry led to a sharp decline in corporate local income tax, but from the second half of 2024, the industry began to recover. In particular, semiconductor-related companies such as Samsung Electronics, SK Siltron, and LG Innotek achieved record-high performances in 2025, which led to an increase in corporate local income tax. As a result, local taxes in 2026 are projected to expand to the level of 500 billion won.

The city believes that proactive corporate support policies implemented alongside the industrial recovery also contributed to the increase in tax revenue. Policies that strengthened the foundation for growth—such as support for facilities and operating funds, the assignment of dedicated project managers (PMs) for each company to assist with national funding projects, and the creation of a startup ecosystem—are considered to have led to improved corporate performance.

Local taxation is a key indicator of the size and competitiveness of the regional economy. The secured financial resources serve as the foundation for improving residential conditions, expanding living infrastructure, and implementing health, welfare, and medical policies.

The city plans to strategically allocate the increased tax revenue to expanding infrastructure such as roads and transportation, strengthening support for vulnerable groups, and fostering youth employment and future industries.

Jangho Kim, Mayor of Gumi, stated, "The recovery in the industrial sector is leading to increased tax revenue, revitalizing the Gumi economy," adding, "We will focus on investing the secured resources in living infrastructure and future growth engines that citizens can tangibly benefit from, thereby enhancing the city’s sustainable competitiveness."

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