Focusing on Three Pillars: Livelihoods, Safety, and the Future
Proposing Solutions for Sluggish Consumption and Exports
3.4% of the 48 Trillion Won Budget... "Swift Execution"
Support for Small Business Owners, Low Birthrate Measures, and AI Development
Seoul City has allocated 1.6146 trillion won for its first supplementary budget of the year. The city aims to focus on revitalizing the livelihoods of its citizens by alleviating the crisis caused by factors such as weakened consumer spending due to the economic downturn and sluggish exports. The core of the budget centers on three pillars: stabilizing livelihoods, urban safety, and future investment.
On May 25, Seoul City announced that it had prepared the "First Supplementary Budget Proposal for 2025" based on these objectives and will submit it to the Seoul Metropolitan Council on May 26.
This supplementary budget amounts to 1.6146 trillion won, which is 3.4% of the original 2025 budget of 48.1545 trillion won. If passed as proposed, the total budget for this year will reach 49.7691 trillion won.
The supplementary budget reflects the deteriorating business sentiment and performance of Seoul-based companies, as confirmed by both perception surveys and statistical data compared to the previous quarter. The city aims to alleviate the burden on the local economy by allocating funds where they are most needed, while also making proactive fiscal investments to foster advanced industries such as artificial intelligence (AI), which are expected to drive Seoul’s growth and enhance its urban competitiveness.
The three main pillars are: ▲Livelihood stabilization (469.8 billion won), ▲Urban safety (158.7 billion won), and ▲Future investment (133.5 billion won), totaling 762 billion won to be operated as targeted "pinpoint investments."
First, a total of 469.8 billion won will be invested in "livelihood stabilization." This includes financial support to help low-credit and at-risk small business owners recover, as well as emergency loans for small and medium-sized enterprises (SMEs) experiencing declining exports, providing stepping stones for renewed growth.
Specifically, 52.9 billion won will be allocated to support small business owners and SMEs, 298.6 billion won to strengthen welfare for vulnerable groups such as people with disabilities and seniors, and 118.3 billion won for low birthrate countermeasures, including policies for marriage, childbirth, and childcare. The city will provide financial support and tailored consulting to small business owners seeking to overcome management crises or restart after closure. Representative programs include the Safe Account for Small Business Owners (18 billion won), revitalization of public delivery services (1.5 billion won), early identification and proactive support for at-risk small business owners (6.4 billion won), support for successful reentry of small business owners after business failure (300 million won), and the establishment of the Small Business Growth Fund (700 million won). Measures for stabilizing livelihoods include not only support for SMEs such as emergency loans (24.2 billion won) and job creation for vulnerable groups (298.6 billion won), but also strengthened low birthrate countermeasures through comprehensive, lifecycle-based policies for marriage, childbirth, and childcare (118.3 billion won).
To ensure that Seoul residents can live their daily lives with peace of mind, the city will also invest in "urban safety." The total investment in this area is 158.7 billion won. The city will accelerate the maintenance of aging sewage pipelines to prevent ground subsidence accidents, strengthen the management of large-scale excavation sites, and renovate essential infrastructure to enhance public safety. Projects include maintenance of aging sewage pipelines (135.2 billion won), detailed inspections and technical diagnostics of aging pipelines (4 billion won), enhanced GPR surveys at large excavation sites (5.6 billion won), and reinforcement of aging infrastructure such as expanding rainwater storage tanks to prepare for climate disasters (12.5 billion won).
In response to the global environment surrounding future growth engines such as AI, the city will focus on building the AI industrial base and nurturing talent. Efforts will also continue to enhance Seoul’s attractiveness as a global city and to transform the daily lives of its citizens through various initiatives. A total of 133.5 billion won has been allocated for these "future investments."
In particular, to become one of the "top three global AI powerhouses," the city will launch initiatives such as the creation of a 500 billion won fund to lead AI innovation. Related targeted investments will include the establishment of the AI Transformation Fund (10 billion won), AI convergence support (2 billion won), and vouchers for high-performance GPU server usage (2 billion won).
Additionally, the city will invest in expanding infrastructure to strengthen urban competitiveness. Projects include the restructuring of Yeouido Park and the Nodeul Global Art Island, as well as the expansion of signature policies such as the "Sonmok Doctor 9988" and "Climate Companion Card" incentives, aiming to innovate the everyday lives of citizens. Seoul City Planning and Coordination Office Director Jung Sanghun stated, "This supplementary budget is focused on protecting livelihoods to the greatest extent possible amid a prolonged economic downturn and providing a foundation for sustainable growth. We will swiftly execute the supplementary budget as soon as it is approved by the council to seize this golden opportunity to turn crisis into opportunity."
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