Yeongju City Moves Up Its Fiscal Timing...All-Out Push for First-Quarter Consumption and Investment Execution

Easing Local Economic Strain Through Early Injection of Public Funds
Expanding Advance Payments and Increasing Contract Flexibility

Yeongju City in North Gyeongsang Province has taken preemptive action to revive the local economy by accelerating rapid fiscal execution in the first quarter in response to the economic slowdown and weakening consumption.

The city announced that on the 25th it held the “2026 First-Quarter Rapid Fiscal Execution and Consumption/Investment Sector Execution Review Meeting” in the city hall conference room, where it closely reviewed measures to accelerate fiscal execution in the first half of the year.

Yeongju City Hall. Photo by Kwon Byeonggeon

The meeting was organized to ease the burden on people’s livelihoods caused by prolonged weakness in consumption and the local economy, and to maximize the priming effect of public finances. Presided over by Acting Mayor Eom Taehyun, department heads from each division attended to share first-quarter execution plans and the status of major investment projects, and to discuss difficulties in execution and improvement measures.

The city has designated the first half of 2026 as a priority period for rapid execution and plans to enhance execution efficiency by intensively managing consumption and investment budget items among general accounts, special accounts, and fund projects. It intends to concentrate administrative capacity on ensuring that fiscal resources are injected into the field at an early stage by strengthening schedule management for each project and reinforcing interdepartmental cooperation systems.

In particular, the city plans to accelerate the circulation of funds within the region by promoting practical execution-boosting measures such as: expanding advance and progress payments; actively utilizing the system for prior notification of government-supplied materials; operating a system for advance payment of construction costs funded by local subsidies; and easing procedures for private contracts and reducing deposit requirements.

Acting Mayor Eom Taehyun stressed, “At a time when inflation and economic stagnation persist, the role of local finances is more important than ever,” adding, “We must thoroughly review all projects with the understanding that the speed of fiscal execution is directly linked to the speed of livelihood recovery.”

He continued, “Do not be satisfied with merely achieving execution rates, but speed up so that projects that citizens and small business owners can truly feel are implemented in a timely manner,” and added, “Starting in the first quarter, we will inject bold and preemptive fiscal spending to breathe real vitality into the local economy.”

The local business community expects that early execution of publicly procured projects will have a positive impact on improving liquidity and stabilizing employment in the construction, service, and small business sectors.

As the timing of fiscal input determines the effectiveness of policy, rapid execution by local governments is emerging as a key tool for defending regional economies. Attention is focusing on whether Yeongju City’s speed-oriented fiscal management will lead to a recovery in local consumption and a revitalization of investment.