"Why Does the Government Exclude Sejong City's Unique Characteristics in Calculating the General Allocation Grant?"

Kim Choongsik, Sejong City Councilor, Points Out Annual Financial Losses of Hundreds of Billions of Won
Calls for Revision of Local Grant Act Enforcement Regulations and Stipulation of Special Fiscal Provisions in Sejong City Act

Kim Choongsik, Sejong City Councilor affiliated with the People Power Party

Since last year, Sejong City has been reducing its budget for events and other projects due to difficulties with its own revenue and expenditure. In this context, there has been criticism regarding the general allocation grant provided by the central government to Sejong City.

On October 13, Kim Choongsik, a Sejong City Councilor, strongly pointed out the problems with the current calculation system for the general allocation grant through an urgent inquiry and called for fundamental improvements.

Assemblyman Kim stated, "Although Sejong City is a single-tier local government that performs both metropolitan and basic functions, the current general allocation grant calculation method is designed based on a multi-tiered structure that does not reflect Sejong City's unique characteristics at all. As a result, Sejong City has to endure annual financial losses amounting to several hundred billion won."

In fact, according to Assemblyman Kim, as of 2025, Sejong City's general allocation grant amounts to 115.9 billion won, the lowest among metropolitan governments except for Seoul and Gyeonggi Province. He pointed out that "even compared to some basic local governments with a similar population size to Sejong City, the per capita grant is only about half, which constitutes structural unfairness that violates the principle of equity among local governments."

He continued, "The general allocation grant is the minimum safety net to address fiscal disparities among local governments and to ensure that residents receive equal administrative services. However, this safety net is not functioning properly. Although Sejong City was established as an administrative capital and has taken over large-scale public facilities, assuming responsibility for their maintenance and management, the general allocation grant has not changed. In addition, central government buildings are tax-exempt facilities, which means that they do not generate local revenue such as property tax, further increasing the city's financial burden."

Accordingly, he proposed: ▲ reflecting Sejong City's basic administrative functions separately by revising the enforcement regulations of the Local Grant Act ▲ stipulating special fiscal provisions through an amendment of the Sejong City Act.

Furthermore, he argued that Sejong City should adopt a structure similar to Jeju Special Self-Governing Province, where a fixed percentage of the total grant amount is distributed according to a fixed-rate system. He believes that a fixed-rate system not only ensures stable fiscal resources but also establishes a foundation that links autonomy with fiscal responsibility.

He also suggested that Sejong City should establish its own mid- to long-term fiscal independence strategy. This would involve expanding independent financial resources through the development of industrial infrastructure and policies to revitalize the local economy, while gradually reducing reliance on the general allocation grant.

Assemblyman Kim stated, "If the general allocation grant calculation system is improved and special fiscal provisions are stipulated, we will be able to provide better education, welfare, transportation, and cultural services to citizens based on stable finances. This will not only strengthen Sejong City's status as the administrative capital but also greatly contribute to the realization of local autonomy and balanced development throughout the Republic of Korea."