The Core of Next Year's Regional Budget: 'Responding to Population Decline and Regional Disappearance'

by Song Seungseop

Published 27 Apr.2023 11:30(KST)

Ministry of Economy and Finance 'Meeting Between Cities and Provinces to Enhance Regional Vitality'

Kim Wan-seop, Director of the Budget Office at the Ministry of Economy and Finance, is delivering opening remarks at the "Meeting between Cities and Provinces to Enhance Regional Vitality" held on the 27th at the International Conference Room, Central Building, Government Complex Sejong.

The Ministry of Economy and Finance has expressed its intention to actively consider population decline and regional extinction in the formulation of the 2024 regional budget.

On the 27th, Kim Wan-seop, Director of the Budget Office at the Ministry of Economy and Finance, stated at the ‘Inter-city and Province Meeting to Enhance Regional Vitality’ held at the Government Sejong Complex, “Above all, it is important for regions to proactively respond to the crisis of population decline and regional extinction,” and emphasized, “Even within a sound fiscal policy framework, the government plans to boldly invest in what needs to be done to enhance regional vitality.”

During the meeting, voices were raised that the forms of financial support should be diversified to revitalize regional investment. It was also suggested that instead of only providing subsidies to local governments as before, it is important to design a financial support incentive platform that can attract private investment.

Additionally, local governments will be able to independently discover and propose specialized projects to lead necessary initiatives, while the central government will simplify administrative procedures related to the selection of regional projects. Support divided by ministries will be provided as a package shared among ministries, local governments, and the private sector. Expansion of policy projects based on ‘living and relational population’ rather than the concept of resident population will also be considered.

Director Kim said, “The suggestions discussed and raised at the meeting will be actively reviewed during the formulation of next year’s government budget,” and urged, “Local governments should continue to identify tasks requiring government support through collecting opinions from the field.”