Prompt Fiscal Policy Needed, Early Supplementary Budget Formulated
Focus on Stabilizing Livelihoods and Revitalizing the Local Economy: 118.7 Billion KRW Invested
594 Billion KRW Dedicated to Realizing a Happy Citizen City
Mayor Park Hyung-jun:
“With extraordinary determination, we will focus city administration on reviving the livelihood economy and move step by step with citizens toward a Busan where people want to live again.”
On the 4th, Busan City announced that it has prepared the '2025 First Supplementary Budget Proposal' amounting to 361.2 billion KRW, a 2.2% increase compared to this year's original budget.
Due to delays in domestic demand recovery, prolonged high interest rates, weakened consumer sentiment, and domestic and international uncertainties causing difficulties, prompt fiscal policies are necessary to stabilize people's livelihoods and revitalize the local economy. Accordingly, the supplementary budget was prepared early with the additionally secured funds.
This supplementary budget, funded by 262.9 billion KRW in local allocation tax and 29.5 billion KRW in national subsidies, focuses on investing in 'stabilizing people's livelihoods and revitalizing the local economy' and 'realizing a warm and safe citizen happiness city together.'
First, 118.7 billion KRW was allocated for 'stabilizing people's livelihoods and revitalizing the local economy.'
◆ Expansion of support for small business owners and self-employed and promotion of domestic consumption: 85.9 billion KRW to boost the stagnant livelihood economy and promote stability.
To stabilize management and promote growth of small business owners, a new project called the ‘Small Business Owners 3-No (無) Hope Connection Card Support’ will be launched, providing 20 billion KRW worth of operating funds to 40,000 people with a maximum of 5 million KRW per person, without interest (up to 6 months), annual fees, or guarantee fees.
To reduce the financial burden on small business owners, interest subsidies will be expanded to provide an additional 232.5 billion KRW in funds, promoting management stability, and contributions to the Busan Credit Guarantee Foundation will be increased to strengthen guarantee support for small business owners.
A new ‘Small Business Owners Management Improvement Total Package Support Project’ will be launched to prevent closures and support business normalization by providing consulting, financial cost support such as guarantee fees, and business funds for brand development to small business owners in management crisis.
To promote participation in vocational training for rapid recovery and rehabilitation of closed small business owners, vocational training allowances will be doubled, and a new ‘Employment Conversion Promotion Project’ will be launched to support long-term employment, lump-sum savings, and employer incentives.
The Dongbaekjeon prepaid card will be increased to 1.4 trillion KRW, extending the cashback expansion (from 300,000 KRW to 500,000 KRW, from 5% to 7%) until June to protect neighborhood markets. New projects will be launched to promote consumption both online and offline for small business products and to refund 10,000 KRW in traditional market vouchers for purchases over 50,000 KRW in traditional markets, thereby increasing consumption within traditional markets and forming a virtuous cycle of local consumption to stimulate domestic consumption and revitalize the livelihood economy.
▲ Expansion of the ‘Cultural Tourism Market Development Project’ and implementation of the ‘First Step Foundation Project’ to nurture specialized traditional markets blending culture and tourism and strengthen competitiveness, along with a new ‘Traditional Market Sales Promotion Support Project’ to increase consumer inflow and revitalize traditional markets.
▲ Activation of local tourism through marketing support, festival support, and expansion of tourism infrastructure to promote local consumption through tourist inflow.
◆ Strengthening regional companies' competitiveness and improving business environment: 32.8 billion KRW to enhance corporate vitality and promote economic re-leap through strengthening small and medium-sized enterprises' capabilities and creating a business-friendly environment.
▲ To reduce financial burdens on SMEs, an additional 267.5 billion KRW in working capital will be provided, and the ‘Overseas Export Companies Logistics Cost Support Project’ will be expanded to alleviate logistics costs such as increased maritime freight, promoting management stability for SMEs.
▲ Support for business development expenses to strengthen the self-sustainability of social economy enterprises, launch of a new ‘Coffee Industry Ecosystem R&D Cluster Construction Project’ for advanced technology convergence and innovation in the coffee industry, expansion of R&D support for export-led future car cooperative core parts, and improvement of the regional economy through hosting the 2025 World Smart City Expo to promote SME growth and regional economic revitalization.
▲ To resolve manpower shortages and youth job mismatches, a new ‘Busan Youth Employment Success Full Package Support Project’ will be launched, strengthening job expert personnel and developing AI-based customized job matching solutions to support corporate capability enhancement through tailored talent recruitment and create region-specific jobs.
▲ By strengthening industrial infrastructure such as constructing the Eco Delta Advanced Knowledge Industry Center, creating Busan Green Startup Town, promoting national industrial complex regeneration projects, installing buffer retention facilities in general industrial complexes, installing public wastewater treatment facilities, and expanding arterial roads, a business-friendly environment will be established to enhance corporate vitality, ensure sustainable growth, and promote economic re-leap.
◆ 59.4 billion KRW was allocated to realize a ‘Warm, Safe, and Happy Citizen City Busan Together.’
Creating a livable and happy living environment: 29.4 billion KRW to realize a warm happy community where everyone wants to live by improving citizen convenience and quality of life.
▲ By establishing and spreading essential infrastructure for representative living zones of the 15-minute city and advancing policy services, a warm community will be activated to improve citizens' quality of life. Housing environment improvements and regionally specialized urban regeneration projects will be promoted to create urban spaces tailored to local needs for citizens' happy lives.
▲ Support for vulnerable groups will be strengthened continuously through building comprehensive social welfare centers and welfare centers for the disabled, supplying urban gas to economically unviable areas, and supporting integrated cultural use vouchers for low-income groups, thereby realizing a welfare community where all citizens are happy.
▲ Providing everyday enjoyment for citizens through support for local autonomous sports activities and weekend sports programs, operation of Samnak Ecological Park water play facilities, and improvement of Hwamyung Water Leisure Town facilities, while creating a convenient transportation environment through urban railway construction and parking lot development around citizen parks.
◆ Safe and healthy citizen safety city: 30 billion KRW to create a safe and healthy citizen safety city without exceptions or exclusions.
▲ Proactively expanding disaster prevention infrastructure such as maintenance of disaster-vulnerable areas at Busan South Port West Breakwater, replacing screen doors on the Busan-Masan double-track railway, improving aging urban railway vehicles, safety improvements for the main stage facilities of Busan Cultural Center, and renovation of aging welfare centers and sports centers to ensure the safety of citizens using public facilities.
▲ Strengthening clean and healthy water management through continuous river management and promoting diversification of water sources to secure clear water and create a safe water environment.
Mayor Park Hyung-jun stated, “Busan has overcome various difficulties wisely to become what it is today. As soon as this supplementary budget proposal is approved by the city council, we will promptly implement projects and execute the budget to serve as a catalyst for recovery amid the difficult economic situation. Our city will focus its administrative capabilities on revitalizing the livelihood economy with extraordinary determination to overcome the current difficulties and move step by step with citizens toward a Busan where people want to live again. We ask for the active support and cooperation of citizens and the city council.”
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