"Adjustment and Allocation Must Consider Financial Disparities"
Changwook Shim, Gwangju City Councilor.
On June 30, Changwook Shim, a member of the Gwangju City Council (Democratic Party of Korea, Buk-gu 5), stated during the '5-Minute Free Speech' at the 2nd plenary session of the 333rd temporary meeting, "Special adjustment grants between autonomous districts must be allocated in accordance with their intended purpose and objectives. However, the concentration of these grants in a particular district is extremely serious, as it undermines both fairness and legitimacy."
Shim pointed out, "The legal basis for special adjustment grants for autonomous districts is the Local Finance Act, which stipulates that financial disparities between districts within a local government’s jurisdiction must be addressed." He continued, "Nevertheless, while grants to other districts were all reduced, the allocation to a specific district was increased by more than 3 billion KRW. Special adjustment grants are neither the exclusive property nor the personal funds of the mayor."
He further explained, "A comparative analysis of the special adjustment grants allocated to autonomous districts in 2024 versus 2023 shows that Dong-gu received a reduction of 1.75 billion KRW, Seo-gu 3.214 billion KRW, and Nam-gu 900 million KRW, while Gwangsan-gu received an increase of 3.063 billion KRW." He emphasized, "This could lead to misunderstandings among districts and erode citizens' trust in the administration."
Shim also argued, "With administrative operating expenses averaging only 12.84% of the main budget over the past two years?the lowest among all districts?and considering that Buk-gu has a population more than four times that of Dong-gu and accounts for 30.2% of Gwangju’s total population, it is only natural that Buk-gu should receive the largest budget allocation."
In response, the Gwangju City government issued an explanatory statement the same day, saying, "Adjustments for financial disparities between autonomous districts are supported through general adjustment grants in accordance with relevant laws and ordinances." The city added, "Special adjustment grants are allocated when there is a specific financial need and upon application by a district, after the city reviews allocation criteria such as on-site inspections, citizens' perceived necessity, project feasibility, and urgency of implementation."
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