▲ Gyeonggi Governor Choo Mi-ae
Gyeonggi Governor Choo Mi-ae has attributed the province's current fiscal crisis to the use of the integrated fiscal stabilization fund and the issuance of local government bonds during former Governor Kim Dong-yeon's tenure, rather than during the period when President Lee Jae-myung served as governor.
Responding to a question from People Power Party lawmaker Yoon Jong-young regarding responsibility for the fiscal crisis during a Gyeonggi Provincial Assembly plenary session for its 393rd extraordinary meeting on September 2, Governor Choo stated, "The 8th popular election term issued local government bonds five times in a short period along with using funds, which is highly unusual."
In a follow-up question asking whether responsibility lies with President Lee Jae-myung and former Governor Kim Dong-yeon, she replied, "President Lee Jae-myung reduced about 70 billion won of inherited debt, so he bears no responsibility." She added, "However, the 8th popular election term depleted various funds, issued local government bonds five times in a short period, and there are several projects that can be confirmed as imprudent or excessive."
When asked if it should be understood that the 7th popular election term bears no responsibility while the 8th term does, she skirted the question by saying, "Regardless of whether there is responsibility or not, we should have responded properly to the fiscal issues, which is deeply regrettable."
Earlier, during questioning by Democratic Party of Korea lawmaker Kim Tae-hee, Governor Choo specifically pointed to the period between 2023 and 2025 under former Governor Kim Dong-yeon, stating, "The problem was pursuing an expansionary fiscal policy during a time when fiscal management was needed."
On this day, Governor Choo repeatedly emphasized the severity of the fiscal crisis.
She said, "Incheon, which has a much smaller population than Gyeonggi Province, has assets worth 64 trillion won, whereas Gyeonggi Province has only 43 trillion won, and Gyeonggi's debt growth rate is excessively fast." She added, "Acquisition tax is a major revenue source, but the era of real estate development has ended, and with 13 cities and counties designated as land transaction permit zones, the outlook is grim."
Governor Choo also engaged in a war of nerves with lawmakers over the gravity of the fiscal crisis.
Addressing lawmaker Kim's argument—based on Ministry of the Interior and Safety fiscal indicators showing Gyeonggi's debt ratio at 15%, ranking 12th among 17 metropolitan local governments—that the province's fiscal crisis is exaggerated, Governor Choo raised her voice and said, "Those indicators are blindfolds and optical illusions; in reality, local government bonds have been issued and funds depleted, leaving nothing to lean on. Waiting until others diagnose a crisis is not responsible administration."
In response to criticism that there was no communication with the provincial assembly when declaring a fiscal emergency, she retorted, "I know about it because I received reports, but the lawmakers have already approved the issuance of local government bonds five times."
She also asked back, "Regarding the failure to organize three months' worth of budget this year, I could say in advance that the provincial assembly was at fault. Shouldn't you have informed me of that first?"
To lawmaker Yoon, who pointed out, "Doubts arise as to whether there is an ulterior motive behind declaring a fiscal emergency, and we cannot shake the suspicion that pledge-based projects will be pursued with financial resources secured through expenditure restructuring," she cut off by stating, "There is no ulterior motive at all, and the idea that we intend to create breathing room after paying off debt to pursue pledge-based projects is 100% wrong."
Meanwhile, the provincial assembly's extraordinary session, which opened the previous day, will run through September 18.
The assembly plans to deliberate and vote on supplementary budget bills and ordinance bills amounting to 42.242 trillion won, which reflect 546.5 billion won in expenditure restructuring by Gyeonggi Province.
(Photo provided by Gyeonggi Provincial Assembly, Yonhap News)
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