Seoul District Mayors' Association: "Livelihood Recovery Consumption Coupon Cost-Sharing Ratio Between Seoul and Districts Should Be 9 to 1"

"Seoul Must Consider the Fiscal Realities of District Offices," Association Requests

The Seoul Association of District Mayors (Chairman Seo Kangseok, Songpa-gu Mayor) officially proposed an adjustment to the cost-sharing plan between the Seoul Metropolitan Government and district offices for the "Livelihood Recovery Consumption Coupon" project during its 198th regular meeting, held on July 9 in the Planning Situation Room on the 6th floor of Seoul City Hall, together with senior officials from the Seoul Metropolitan Government.

Meeting scene of the Association of District Mayors. Provided by Seoul Association of District Mayors.

The central government initially decided that the Livelihood Recovery Consumption Coupon budget would be shared 90% by the central government and 10% by local governments. However, for Seoul, the local government share was raised to 25%, resulting in a financial burden of 600 billion won for the city. In response, on July 8, the Seoul Metropolitan Government held a deputy district mayor meeting and notified the district offices that they would be responsible for 40% of Seoul's share.

Due to this measure, all 25 districts in Seoul are now required to shoulder between 3 billion and 16 billion won each (with Songpa-gu at 16 billion won). They appealed that it is extremely difficult to secure additional funds in the already tight fiscal environment. The Association of District Mayors requested that, just as the central government set the national-to-local cost-sharing ratio at 9:1 to reflect the financial difficulties of local governments, the ratio between the Seoul Metropolitan Government and the district offices should also be adjusted to 9:1.

The district offices explained that expenditures for matching funds for subsidized projects, various legal and mandatory expenses, and essential projects continue to rise. However, their revenues remain rigid, being limited to sources such as registration license taxes and property taxes. They also noted that all supplementary budgets for 2025 have already been finalized, making it virtually impossible to secure additional resources.

Seo Kangseok, chairman of the association, emphasized, "Since Seoul's district offices must continue to provide administrative services to residents at the front line, if this unexpected and excessive financial burden is imposed, it will inevitably require adjustments to existing project budgets for residents, which could negatively impact them. I strongly urge that, in consideration of the fiscal conditions of the district offices, the cost-sharing ratio between Seoul and the districts be set at 9:1."

Meanwhile, Seo Kangseok, Songpa-gu Mayor, was elected as the new chairman of the association at the 197th extraordinary meeting on June 11. His term runs from July 1, 2025, to June 30, 2026. He plans to focus on serving as a bridge between the Seoul Metropolitan Government and the central government, as well as on discussions to improve laws and systems.