Mayor Oh Sehoon and Council of District Mayors Sign Joint Declaration
Call to End Central Government's Unilateral Imposition of Policy Costs on Local Governments
Demand for Improved Subsidy Practices... "Pushing for Institutional Reform"
The Seoul Metropolitan Government and its district offices have pushed back against the unilateral imposition of policy costs by the central government, such as those related to consumer coupons. They are demanding improvements to the practice of differentiated national funding for Seoul and an expansion of local fiscal autonomy.
On the morning of September 22, the Seoul Metropolitan Government and the Council of District Mayors held a press conference at Seoul City Hall to announce the "Joint Declaration on Local Finance of Seoul Metropolitan Government and District Offices," calling for guarantees of local fiscal autonomy.
This joint declaration, announced to mark the 30th anniversary of local autonomy, reflects the situation in Seoul, where fiscal expenditures are rapidly increasing due to a sharp rise in low birth rates, an aging population, and the deterioration of urban infrastructure. Furthermore, in the case of the consumer coupons recently issued by the government, the policy costs were notified to local governments without consultation or consent. Seoul is also the only one among the 17 metropolitan and provincial governments nationwide to have a 75% national subsidy rate applied, while the other cities and provinces receive 90%. As a result, the financial burden on Seoul and its districts amounted to a staggering 580 billion won.
On this day, Mayor Oh Sehoon and other participants signed the joint declaration and held message boards reading "Sustainable Seoul," "The Future of Local Autonomy," and "Improvement of Differentiated Subsidies," emphasizing that fiscal autonomy in Seoul is the future of local autonomy in South Korea. Seo Gangseok, chair of the Council of District Mayors, stated, "Unlike the central government, local governments are fundamentally prohibited from running fiscal deficits, which has created a vicious cycle where projects necessary for residents' convenience and welfare must be reduced. Expanding local fiscal autonomy is now an urgent task that can no longer be postponed."
Following the declaration, the "30th Anniversary Local Finance Forum for Elected Local Autonomy," co-hosted by the Seoul Metropolitan Government and the Seoul Institute, was held. The forum, under the theme "Strengthening Local Fiscal Autonomy and Expanding Local Fiscal Authority," featured heated discussions among experts on the current status and improvement measures for local fiscal authority.
The forum began with congratulatory remarks from Choi Hojung, Chairperson of the Seoul Metropolitan Council, and Kim Taegyun, First Deputy Mayor for Administrative Affairs, followed by keynote presentations from Kim Honghwan, Research Fellow at the Korea Institute of Local Finance; Jeon Seongman, Director of the Local Finance Research Center at the Korea Research Institute for Local Administration; and Kang Seok, Director of Fiscal Planning at the Seoul Metropolitan Government. Kim Honghwan presented on "The Current Status and Challenges of Local Fiscal Authority," Jeon Seongman discussed "The Need to Enhance the Autonomy of Local Finance and Expand Local Fiscal Authority," and Kang Seok addressed "Cases of Fiscal Discrimination Against Seoul and Directions for Improvement."
The Seoul Metropolitan Government plans to strongly recommend various proposals for expanding local finance and fiscal authority, as suggested at the forum, to the National Assembly and central government ministries. In addition, the city plans to pursue ongoing improvements in cooperation with the Council of Provincial Governors, academic societies on local finance and administration, and other experts. Mayor Oh stated, "Local autonomy has grown alongside citizens' lives for the past 30 years, but fiscal autonomy has remained stagnant. Seoul's fiscal autonomy is the future of local autonomy in South Korea." He added, "Seoul and its districts will speak with one voice to demand fair subsidies and autonomous fiscal management, and we will take full responsibility to ensure this declaration becomes a real turning point for institutional reform."
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