Kim Dong-yeon: "Expansionary Fiscal Policy Was a Responsible Choice"... Rebutting Choo Mi-ae's "Fiscal Crisis Theory"

Former Gyeonggi Provincial Governor Kim Dong-yeon has launched a counteroffensive against current 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 administration during a provincial council session.

On this day, former Governor Kim posted an article titled "Fulfilling Responsibility Through Expansionary Fiscal Policy" on Facebook, 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 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 counter-argued, "Stating that finances are tight and finding the 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 policies and tax revenue shortfalls. Gyeonggi Province had to serve as a breakwater for people's livelihoods, and the 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 incurring debt, but investing 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 livelihood, care, local currency, and small business support. In the process, insufficient financial resources were supplemented through local bonds and fund borrowings."

Former Governor Kim explained that the local bonds issued and funds operated in accordance with the Local Finance Act were used for road, railway, and river projects, as well as Gyeonggi Province's share of the government's high oil price relief funds.

He also clarified the issue raised by Governor Choo regarding the "allocation of a 9-month budget for certain livelihood projects."

Former Governor Kim countered, "This did not mean terminating the project after nine months, but rather re-inspecting tax revenue conditions in the second-half supplementary budget and reducing or adjusting projects with low urgency to supplement the remaining financial resources."

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 nationwide city and provincial average of 15.52% and even lower than Seoul's 21.62%. Considering Gyeonggi Province's fiscal scale and mid-to-long-term conditions, it is a level that can be sufficiently managed if revenue expansion, expenditure adjustment, and systematic debt repayment management are carried out in parallel."

However, he expressed wholehearted agreement with Governor Choo's awareness of 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. If it is about setting Gyeonggi Province's finances straight and protecting the lives of its residents, I will join hands at any time."

Meanwhile, former Governor Kim, who resided in Gwanggyo, Suwon during his term in office, moved to Seopangyo, Seongnam at the end of last month.

In political circles, given that the incumbent lawmaker for Seopangyo (Bundang-gap) is People Power Party lawmaker Ahn Cheol-soo, interpretations have emerged that former Governor Kim relocated his address to prepare for the upcoming general election.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.