Gwangju Buk-gu to Receive Additional 3.9 Billion Won in Basic Pension from National and City Funds

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Buk-gu, Gwangju Metropolitan City (Mayor Moon In) is expected to ease its severe financial difficulties as the financial burden for the Basic Pension, a welfare system that provides up to 300,000 KRW per month to low-income seniors aged 65 and over, is reduced.

This follows the resolution of the partial amendment to the Enforcement Decree of the Basic Pension Act at the Cabinet meeting held on the 18th of last month, which includes additional national treasury support for basic pension funds to cities, counties, and districts with less than 35% financial autonomy.

According to Buk-gu on the 23rd, the district's financial autonomy based on this year's original budget is 26.8%, and social welfare expenses account for 68.7% (483 billion KRW) of the total budget, representing the highest level of welfare expenditure nationwide.

Accordingly, Buk-gu falls under local governments with a national burden ratio of 70% or less and a social welfare expenditure ratio exceeding 60%, and will receive an additional 2.6 billion KRW in national funds.

Since the 7th elected term, Buk-gu has continuously requested the expansion of national funding for the basic pension to the Prime Minister, members of the National Assembly, and the central government.

In August 2018, Mayor Moon In visited local National Assembly members to discuss the necessity of expanding national funding and submitted proposals to the Ministry of Health and Welfare and the Ministry of the Interior and Safety.

In particular, he sent a letter to former Prime Minister Lee Nak-yeon, appealing that the burden of social welfare expenses is causing serious difficulties in the financial management of basic local governments.

In November, he also met with Mayor Jeong Myeong-hee of Buk-gu, Busan, to share the current status of both institutions and agreed to cooperate in joint responses.

Earlier, on the 13th, the Gwangju Metropolitan Council passed the “Gwangju Metropolitan City Basic Pension Cost Burden Ordinance Amendment,” raising the city's basic pension burden rate from 60% to 65%, which means Buk-gu will receive an additional 1.3 billion KRW in city funds starting next year.

Mayor Moon In of Buk-gu said, “With the additional national and city funding for the basic pension, the district's financial burden will be somewhat reduced. As social welfare expenses are expected to increase every year, we will continue to focus on securing budgets for regional development and current projects while improving financial efficiency across the district administration.”