Gyeonggi Governor Refutes Claims That Province's Financial Strain Is Due to 'Excessive Welfare'

Amid an ongoing debate over accountability regarding Gyeonggi Province's fiscal emergency, Gyeonggi Governor Choo Mi-ae has directly refuted claims that the financial crunch was caused by excessive welfare policies.

Governor Choo stated via social media yesterday evening, "Politicians claim that Gyeonggi's financial difficulties stem from excessive welfare policies," adding, "This is a tactic that distorts the whole picture by emphasizing only what they want to see, thereby misleading the issue."

"The financial strain did not occur because welfare was expanded," Choo countered, "but rather because the number of provincial residents requiring welfare and public services is rapidly growing."

She then presented changes in Gyeonggi's demographic structure as evidence.

"Gyeonggi is the local government with the largest population in South Korea and the place where the most babies are born," Choo explained, adding, "At the same time, the elderly population flowing in from other regions is also increasing rapidly."

She argued, "As both children and the elderly increase simultaneously, costs for childcare, education, caregiving, medical services, transportation, and housing are bound to surge sharply."

Choo also pointed out that the revenue base is failing to keep pace with the increase in fiscal expenditures.

She claimed that while necessary spending continues to rise, tax revenues resulting from Gyeonggi's industrial growth do not return to the province.

Comparing the revenue structures of Seoul and Gyeonggi, Choo noted, "Seoul, which has almost no factory facilities, relies on the corporate local income tax as its primary source of revenue." She continued, "On the other support, Gyeonggi, which is densely packed with factories, industrial complexes, supporting workforce, and research facilities, cannot collect a single penny of corporate local income tax because it is not a provincial tax."

She also cited the revenue structure's excessive reliance on real estate acquisition taxes as a problem.

Following Governor Choo's declaration of a fiscal emergency, political circles have raised arguments holding the previous provincial administration responsible for its fiscal management and welfare policies.

In response, Choo criticized the backlash, saying, "It is utterly pathetic that they are trying to turn this merely into political strife." She emphasized, "We must fundamentally change the tax revenue structure so that Gyeonggi can secure fiscal authority befitting its size and role."

Reported by Jung Da-eun | Video by Lee Eui-seon | Graphics by Yang Hye-min | Produced by Digital News Department

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