Uijeongbu City Declares 'Zero Debt Achievement'

Uijeongbu Mayor An Byung-yong announced on the 18th at a press briefing that Uijeongbu City has achieved zero debt through efficient budget allocation and sound fiscal management.

He also stated that the 8·3·5 Project—a campaign pledge for the sixth elected term aimed at attracting 8 million tourists, creating 30,000 jobs, and generating 5 trillion won in economic effect—is expected to be successfully realized.

He emphasized that this expectation is based on smooth progress in complex cultural and creative city development projects, including the establishment of the Eulji University Uijeongbu Campus and affiliated hospital, the nation's first private-sector participation project for Jik-dong and Chu-dong neighborhood parks, and the construction of Pororo Theme Park, YG K-POP Cluster, Shinsegae Premium Outlet, and Smart Farm in Sangok-dong, Uijeongbu.

Uijeongbu City's debt stood at 29.6 billion won in the first half of 2010 (26.9 billion won in general account, 2.7 billion won in public enterprises), and 38 billion won by year-end December. By the end of 2013, it had increased to 86 billion won. Major expenditures included 55 billion won for the East Arterial Road expansion project, 20 billion won for substation relocation and underground transmission line work, 5 billion won for the Baekseok Stream ecological restoration project, and 6 billion won in reduced local transfer taxes. Loans were made at interest rates ranging from a minimum of 2.5% to a maximum of 3.5% through the Gyeonggi Province Regional Development Fund.

The city had planned to gradually reduce debt each year until 2023. However, after repaying 32 billion won in 2016 and 6 billion won in the first half of 2017, the city fully repaid 48 billion won in outstanding debt by the end of September, achieving zero debt. This early repayment also resulted in savings of 4.1 billion won in interest expenses.

Uijeongbu City's zero debt achievement was aided by 1.355 trillion won in external funding secured from national treasury, provincial budget, private sector, and LH and KEPCO among 11 continuous projects exceeding 26 billion won in commitment expenditures over the past decade (totaling 1.6907 trillion won), which minimized the city's budget.

Additionally, by establishing cooperative relations with the local National Assembly member and Gyeonggi Province council members, the city received a total of 77.6 billion won from the Ministry of Interior and Safety special transfer tax and Gyeonggi Province special adjustment transfer funds from 2010 to the present, which was reflected in expenditures and greatly contributed to budget savings.

The city also drafted an austerity budget in 2017 in preparation for the crisis at Uijeongbu Light Rail Transit. Through departmental cost reductions, business promotion expenses, uniform costs, annual leave compensation, hobby club activity allowances, and reductions in event, festival, and local subsidy spending, the city proactively cut approximately 4.7 billion won in budget to prepare for potential bankruptcy of Uijeongbu Light Rail Transit Company.

Mayor An Byung-yong stated, "I thank all public officials of Uijeongbu City, as well as the local National Assembly member, provincial council members, and city council members for their efforts toward zero debt in Uijeongbu City," and added, "Going forward, I will do my best to promote complex cultural and creative city development and projects for the utilization of returned military bases for the next 100 years of sustainable growth."