Im Seonghwa, Gwangju Seo-gu Council Member, Stresses Need to Secure Fiscal Sovereignty for Autonomous Districts

Im Seonghwa, member of the Gwangju Seo-gu Council and chair of the operations committee, strongly emphasized the need for autonomous districts to secure fiscal sovereignty in relation to the ongoing discussions about the integration of Jeonnam and Gwangju.

As the launch of the Integrated Metropolitan City becomes increasingly likely, Im warned that without guaranteeing the fiscal autonomy of basic local governments, it could result in only a “half-baked local autonomy and decentralization.”

During a recent five-minute free speech at the 2nd plenary session of the 339th extraordinary meeting, Im stated, “Even amid the significant turning point represented by the Jeonnam-Gwangju Integrated Metropolitan City, autonomous districts still face the structural issue of ‘fiscal marginalization,’” adding, “Without fiscal independence, we cannot claim to have true local autonomy and decentralization.”

Im Seonghwa, member of the Gwangju Seo-gu Council.
Photo by Im Seonghwa Office

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He pointed out the limitations of the current local fiscal structure. While the 22 cities and counties in Jeonnam receive the general grant tax directly from the central government, autonomous districts receive their financial resources only after allocation by metropolitan governments, resulting in reduced fiscal autonomy.

This has led to ongoing concerns about fairness among basic local governments, as well as constraints on policy-making autonomy.

As solutions, Im proposed: ▲ clearly specifying special provisions for the general grant tax for autonomous districts or “special integrated grants” in the integration special act ▲ considering the introduction of a “fixed-rate fiscal allocation system” in line with the transfer of daily life-related work ▲ building solidarity among the five autonomous districts in Gwangju to secure fiscal sovereignty.

Im stressed, “It is a structural contradiction that, despite the transfer of work closely related to daily life to autonomous districts, fiscal authority does not follow. To responsibly implement policies directly affecting citizens’ lives, autonomous districts must have mechanisms in place to secure stable financial resources.”

In fact, during the legislative process for the “Special Act on the Establishment of the Jeonnam-Gwangju Integrated Metropolitan City,” a provision allowing direct allocation of the general grant tax to autonomous districts was considered, but was reportedly excluded during discussions at the National Assembly’s standing committee.

As a result, there are growing concerns that fiscal disparities among basic local governments may deepen even after the launch of the Integrated Metropolitan City.

The general grant tax is the most significant financial resource among local allocation taxes. However, under the current system, it is not directly allocated to autonomous districts but rather distributed in bulk to metropolitan cities, leading to continued calls for greater fiscal decentralization.

Related to this, at the 9th Central-Local Cooperation Meeting held last year, the irrationality of the general grant tax calculation structure was discussed, and President Lee Jaemyung reportedly directed relevant ministries to review improvements.

Im stated, “I will continue working to further strengthen local autonomy in Seo-gu and ensure the district can independently design budgets for its future. Through solidarity among autonomous districts, I will make sure to resolve the issue of fiscal marginalization.”

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