Hwacheon County Repays Debt and Increases Revenue, Selected as Best in 2025 Local Government Financial Analysis

Hwacheon County, the Only Local Government in Gangwon to Receive Top Grade in Ministry of the Interior and Safety Evaluation
Maintaining Sound Finances Without Debt After Full Early Repayment of Local Bonds in 2015
Revenue Up 63.8 Billion Won Year-on-Year Through Increased Self-Generated Income and National/Provincial Funding

Hwacheon County in Gangwon Province has been selected as the only local government in the province to receive the highest grade of "Best Local Government" in the 2025 local government financial analysis conducted by the Ministry of the Interior and Safety.

A panoramic view of Hwacheon County Office. Provided by Hwacheon County.

Based on the fiscal year 2024 finances, Hwacheon County was recognized for significantly improving both the soundness and efficiency of its local finances, securing up to 100 million won in special grants.

Among county-level local governments, only four-including Hwacheon County, Yeoncheon County in Gyeonggi Province, Jangseong County in South Jeolla Province, and Cheongsong County in North Gyeongsang Province-were selected as best local governments in this evaluation by the Ministry of the Interior and Safety.

Despite being a small-scale local government, Hwacheon County fully repaid its outstanding local bonds of 9.7 billion won ahead of schedule in 2015.

Since then, the county has maintained sound finances without issuing additional local bonds, even amid a prolonged economic downturn.

In particular, Hwacheon County has been praised for establishing a stable financial structure through thorough expenditure restructuring and strict pre-screening of investment projects.

Additionally, Hwacheon County's consolidated fiscal balance ratio stands at 10.19%, far exceeding both the average for similar county-level local governments (-1.73%) and the national average (-2.5%).

This achievement is attributed to a 63.8 billion won (9%) year-on-year increase in revenue such as local allocation tax and net world surplus, as well as increases in self-generated income like local taxes and non-tax revenues, budget secured through various public contest projects, and increased intergovernmental transfers such as national and provincial subsidies.

Furthermore, Hwacheon County has been recognized for not only repaying debt and increasing revenue but also enhancing efficiency in expenditures.

In practice, the county improves spending efficiency by conducting strict feasibility evaluations and setting priorities for investment projects during budget formulation.

Moreover, the county prepares supplementary budgets within the total expenditure limit through rigorous review, and boldly reduces unnecessary local subsidy budgets.

Hwacheon County's original budget for 2025 amounts to approximately 437.3 billion won, an increase of 10.7 billion won from the previous year.

Choi Moonsoon, Mayor of Hwacheon County, stated, "We will continue to establish and implement even more meticulous financial management plans to revitalize the local economy and support the happy lives of our residents."