Emergency Financial Measures... Choo Mee-ae Launches Comprehensive Local Tax System Reform

[News S=Reporter Cheon Ui-hyun] Gyeonggi Province Governor Choo Mee-ae, who declared a 'financial emergency' for Gyeonggi Province, presented a comprehensive overhaul of the local tax system on the 6th.

Governor Choo stated on her Facebook that "Gyeonggi Province's fiscal crisis stems from an outdated local tax system" and pointed out that now is the time to fundamentally reform the local tax structure.

Governor Choo noted, "Seoul, which has almost no factory facilities, has corporate local income tax as its top tax source, while Gyeonggi Province, with concentrated factories, industrial complexes, supporting workforce, and research facilities, collects zero corporate local income tax—a stark difference from Seoul."

She continued, "Gyeonggi Province bears massive costs to maintain and develop industry, and we must prepare sites for factories, build roads and railways, supply water and electricity. In reality, we also bear the burden of air pollution, traffic congestion, transmission towers running through various areas, and various industrial facilities."

Governor Choo pointed out, "Despite bearing these costs and sacrifices, the tax revenue generated by corporate growth does not return to Gyeonggi Province."

On Facebook, Governor Choo stated, "Gyeonggi Province's top tax source is acquisition tax on real estate. In the past development era, we could rely on acquisition tax, but that era has ended and acquisition tax revenue is declining. We estimate it will decrease by 65% next year."

Therefore, Governor Choo suggested, "The structure in which local governments that bear enormous costs to support industry fail to secure tax revenue from that industry must be changed," signaling the need for local tax system reform.