Chungcheong Region Secures 'Largest Ever' Government Budget... Driving Force for Local Issue Projects by Area

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Chungcheong region has secured the largest-ever government budget for next year, gaining momentum to advance major local projects by region.

◆ Daejeon ‘Defense Acquisition Program Administration (DAPA) Budget as Originally Planned’ = Daejeon City is entering the era of a 40 trillion KRW government budget for next year. The city secured 4.1485 trillion KRW in the government budget for next year. This is an increase of 284.1 billion KRW (7.3%) from this year’s 3.8644 trillion KRW, marking an all-time high.

Most of the major projects requested by the city were reflected in the government budget. Above all, the city emphasizes that the initial budget for relocating the Defense Acquisition Program Administration (DAPA) to Daejeon was included without any cuts.

Last month, although the National Assembly’s National Defense Committee cut the related budget from 21 billion KRW to 12 billion KRW, the fact that the budget was passed as originally planned in the plenary session is considered significant.

The initial budget for relocating DAPA to Daejeon was intended for the advance team’s relocation, basic design, and detailed design, which are the starting points of the relocation task force. If the budget had been cut, administrative procedures such as the construction of the new building could have been delayed.

However, with the related budget finally reflected as originally planned, the city expects the relocation of the DAPA institution, which will begin next year, to accelerate.

In addition, with the government budget for next year reflecting large-scale funding for the Chungcheong region’s metropolitan and ring road network construction, Daejeon Urban Railway Line 2 tram, and the Daedeok Special Zone Convergence Research Innovation Center, the city has gained strength to push forward major local projects.

◆ Sejong ‘Next Year’s Budget, Largest Since Inception’ = Sejong City secured 1.3874 trillion KRW in the government budget for next year. This is an increase of 48.8 billion KRW (3.6%) from the original government proposal and is the largest budget since Sejong City’s inception in 2012.

With many local projects reflected in the budget, the city expects to strengthen efforts to host the ‘2027 Summer World University Games,’ establish a future strategy capital base, and complete the administrative capital.

In particular, the budget for the Presidential Office in Sejong and the National Assembly Sejong Assembly Hall included in next year’s budget is considered a major achievement in securing the budget.

Among these, the land acquisition cost for the National Assembly Sejong Assembly Hall, which was not included in the original government proposal, was finally allocated 35 billion KRW, adding significance. The city anticipates that this will enable the full-scale construction of the Sejong Assembly Hall starting next year. The budget for the Presidential Office in Sejong was increased from 100 million KRW in the government proposal to 300 million KRW in the final budget.

◆ Chungnam ‘Government Budget of 9 Trillion KRW Focused on Hydrogen Industry, etc.’ = Chungnam Province secured a large number of new projects such as the hydrogen industry in next year’s government budget, laying the foundation to foster future growth industries in the region.

The province secured 9.0589 trillion KRW in the government budget for next year, an increase of 685 billion KRW (8.2%) from this year’s 8.3739 trillion KRW. This is the first time the province has secured a government budget exceeding 9 trillion KRW.

In particular, as part of fostering future strategic industries, Chungnam secured budgets for projects such as establishing a clean hydrogen testing, evaluation, and demonstration support infrastructure, building a hydrogen turbine testing research center, and constructing a carbon capture technology demonstration center, thereby laying the foundation to expand clean hydrogen production and utilization for the transition to an eco-friendly hydrogen economy.

The increase of 8 billion KRW in the budget for the ‘Dangjin~Daesan Expressway’ construction project, the largest issue on the west coast, is also considered a major achievement in next year’s government budget.

This project had been stalled due to cost overruns and other reasons, but with the recent passage of the preliminary feasibility re-examination by the Ministry of Economy and Finance and the budget increase, the province explains that smooth project progress can now be expected.

Chungnam Governor Kim Tae-heum said, “Next year’s government budget is more meaningful as it includes many core infrastructure projects necessary for Chungnam to realize the ‘Carbon Neutral Economy Special Province.’ Based on this year’s achievements, the province will strive to open the era of ‘10 trillion KRW government budget’ for Chungnam in 2024.”