▲ Former Gyeonggi Provincial Governor Kim Dong-yeon and Gyeonggi Provincial Governor Choo Mi-ae converse during the 12th memorial ceremony for the Sewol ferry disaster held at Hwarang Campground in Ansan, Gyeonggi Province, on the 16th. Former Governor Kim, whose duties were suspended due to his registration as a preliminary candidate in the Democratic Party's gubernatorial primary, attended in a personal capacity.
Former Gyeonggi Provincial Governor Kim Dong-yeon launched a counteroffensive today (the 15th) targeting incumbent Governor Choo Mi-ae, who attributed Gyeonggi Province's fiscal crisis to the expansionary fiscal policy of the 8th popular election term.
This marks a direct rebuttal 13 days after Governor Choo publicly criticized the former provincial administration at the provincial assembly.
Former Governor Kim posted an article titled "Fulfilling Responsibility Through Expansionary Fiscal Policy" on Facebook today, systematically refuting Governor Choo's points.
Previously, during a questioning session on provincial administration at the Gyeonggi Provincial Assembly on the 2nd, Governor Choo directly targeted the expansionary fiscal policy from former Governor Kim's tenure, stating, "Depleting funds and issuing local government bonds five times in a short period during the 8th popular election term is an exceptional and lax operation."
In response, former Governor Kim hit back, saying, "The existence of fiscal difficulties and finding their cause in the expansionary fiscal policy of the previous administration are two different matters. Expansionary fiscal policy has been a consistent principle spanning both the 7th popular election term (during President Lee Jae-myung's tenure as governor) and the 8th term."
He continued, "Following the COVID-19 pandemic in the 7th popular election term, the 8th term faced the triple highs of high interest rates, high inflation, and high exchange rates, compounded by the Yoon Suk Yeol administration's austerity fiscal policy and tax revenue shortfalls. Gyeonggi Province had to serve as a breakwater for people's livelihoods, and an expansionary fiscal policy to protect those livelihoods was not a mistake, but a responsible choice."
He also drew a line regarding the issuance of local government bonds, stating that it was not simply debt accumulation, but an investment in the lives of provincial residents and the future of Gyeonggi Province.
Former Governor Kim stated, "The 8th popular election term continued investments for the future—such as semiconductors, renewable energy, and the social economy—while safeguarding livelihoods, care services, local currency, and support for small business owners. In that process, insufficient financial resources were supplemented by issuing local government bonds and borrowing from funds."
According to former Governor Kim, local government bonds issued in accordance with the Local Finance Act and fund management were used for road, railway, and river projects, as well as Gyeonggi Province's share of the government's high fuel price damage support funds.
He also offered an explanation regarding the "9-month budget allocation for certain livelihood projects," which Governor Choo had taken issue with.
Former Governor Kim countered, "This did not mean terminating the project after nine months; rather, the plan was to reexamine tax revenue conditions during the supplementary budget in the second half of the year, and to supplement the remaining financial resources by reducing and adjusting projects with lower urgency."
Former Governor Kim added, "This is not a fiscal crisis. Last year, Gyeonggi Province's debt ratio stood at 12.86%, which is lower than the 15.52% average for all metropolitan cities and provinces nationwide, as well as Seoul's 21.62%. Considering the fiscal scale and mid-to-long-term conditions of Gyeonggi Province, it is a manageable level if we simultaneously pursue revenue expansion, expenditure adjustments, and systematic debt repayment management."
However, he expressed strong agreement with Governor Choo's awareness of the problem regarding the need to improve the vulnerable tax revenue structure, stating, "Although I have left office, I do not believe my responsibility has left with me. Whenever it comes to setting Gyeonggi Province's finances right and protecting the lives of its residents, I will stand together at any time."
(Photo: Yonhap News)
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