For Efficient Local Bond Management and Fiscal Soundness
The Chungnam Provincial Council held a financial forum in the first half of 2025 to discuss the introduction of the Chungnam-type fiscal rules. / Chungnam Provincial Council
The Chungnam Provincial Council has begun preparations to introduce "Chungnam-type fiscal rules" in order to efficiently respond to the rapidly increasing local government debt.
On May 14 at 2:00 p.m., the council held the "2025 First Half Financial Forum" in the council conference room, where participants discussed the need to establish institutional mechanisms for efficient local bond management and to secure fiscal soundness.
This forum was organized to establish a responsible fiscal management system in light of the fact that Chungnam Province's actual debt surged from 509.9 billion won in 2020 to a provisional 1.9917 trillion won in 2025, representing an almost fourfold increase over five years.
A council official stated, "Proactive discussions for sustainable fiscal management are now truly beginning," and added, "The introduction of fiscal rules will mark a turning point that strengthens accountability not only in debt management but also across the entirety of budget policy."
Lee Hyunsook, Vice Chairperson of the Council's Budget Policy Advisory Committee (Proportional Representation, People Power Party), who chaired the forum, emphasized, "The current fiscal situation, with debt increasing rapidly, is structured in a way that could pass the burden onto future generations," and stressed, "There is a growing need to establish institutional control mechanisms to enhance the transparency and sustainability of fiscal operations."
Hwang Kyuseon, a researcher at the Gangwon Research Institute who delivered the keynote presentation, introduced Gangwon Province's experience with fiscal rules and suggested, "Rather than directly restricting expenditures, it is more effective to set integrated fiscal balance and actual debt ratio as key management indicators and manage them flexibly."
The designated panel discussion included Lee Jaekyung, professor at Chungnam National University; Yoon Jucheol, analyst at the National Assembly Budget Office; Kim Donggyun, researcher at the Korea Legislation Research Institute; and Lim Minsik, budget officer of Chungcheongnam-do. They discussed specific plans for the introduction of fiscal rules, their limitations, and possible supplementary measures.
Hong Sunghyun, Chairperson of the Provincial Council (Cheonan 1, People Power Party), stated, "Given the reality of increasing debt, the discussion on fiscal rules is now a necessity, not a choice," and added, "The council will continue to provide legislative and policy support to minimize the burden on residents and ensure responsible fiscal management."
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