This year, the financial independence ratio of Gwangju Metropolitan City ranked the lowest among the eight special metropolitan cities nationwide.
According to the analysis of the '2024 City and County Financial Independence Ratio (based on the initial budget)' by the Progressive Party Gwangju Local Assembly Members Group (led by Seo-gu Assemblyman Kim Tae-jin) on the 27th, Gwangju Metropolitan City's financial independence ratio (the proportion of self-generated revenue in general account revenue) this year is 40.7%, down 1.6 percentage points from last year's 42.3%.
This is 2.6% lower than the national average of 43.3% and the lowest figure since the revision of the financial independence ratio calculation items in 2014.
The average for the five autonomous districts of Gwangju is 16.3%, with Gwangsan-gu at 18.8%, Seo-gu at 18.6%, Dong-gu at 16.3%, Nam-gu at 14.7%, and Buk-gu at 13.3%, making Buk-gu the district with the lowest financial independence ratio.
Meanwhile, Jeonnam Province recorded an average of 24.4%, the second lowest among the 17 metropolitan cities and provinces after Jeonbuk's 23.5%. By city and county, Yeosu-si was 25.9%, Gwangyang-si 22.9%, Suncheon-si 19.6%, and Naju-si 16.8%. Among the 17 counties, Hampyeong-gun and Wando-gun both had 7.2%, Gurye-gun 7.8%, and Sinan-gun 7.9%, with 11 out of the 17 counties falling below 10%.
Seo-gu Assemblyman Kim Tae-jin stated, “The proportion of comprehensive real estate tax (종부세) in local finances ranges from a minimum of 3% to a maximum of 12%, but due to the reduction in 종부세, the real estate grant tax in 2023 decreased by 2.6 trillion won compared to the previous year.” He added, “Efforts are needed to expand local finances through wealth tax increases and to secure self-generated revenue for local governments.”
Shin Dong-ho, Honam Reporting Headquarters, Asia Economy bless4ya@asiae.co.kr
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