Yongin Mayor Lee Sang-il Says "Strong Backlash Expected from Cities and Counties Over Corporate Local Income Tax Restructuring"

Yongin Mayor Lee Sang-il stated on the 10th that "Gyeonggi Province's plan to pool half of the corporate local income tax from 31 cities and counties to cover fiscal deficits will face significant backlash from each municipality."

The mayor appeared on OBS Radio's "Good Morning OBS with Kim Jun-ho" that day and made clear his opposition to Gyeonggi Governor Choo Mi-ae's recent proposal to amend corporate local income tax to cover revenue shortfalls.

When asked about Gyeonggi Province's plan to pool corporate local income tax sources, the mayor stated, "Governor Choo Mi-ae mentioned a 7 trillion won fiscal deficit and called it an emergency situation, but we need to look closely at the nature of that debt and its repayment period." He added, "Since the 7th and 8th civilian-led administrations, Gyeonggi Province has conducted many cash-based support projects, worsening its financial situation. Rather than resolving this through expenditure restructuring, the province is trying to take half of the 31 cities and counties' corporate local income tax, which will provoke strong resistance from municipalities."

The mayor said, "If we look into Gyeonggi Province's cash-based support projects, there are quite a few cases where cities and counties bear 70 percent of total project costs. This is a situation where Gyeonggi Province takes credit while shifting the burden to cities and counties." He added, "All these policies need to be reviewed."

Regarding Gyeonggi Province's securing its own financial resources, the mayor emphasized, "The province should coordinate with the central government to change Gyeonggi Province from a non-grant local government to a grant-receiving one and secure its own tax sources independently."