Exclusive Gyeonggi Province's Debt: 2.02 Million Won Burden per 4-Person Family

Gyeonggi Province's principal and interest payments that must be met through 2038 to repay borrowings from local bonds and various funds exceed 7 trillion won. Based on simple conversion using the current population of Gyeonggi Province residents, this amounts to approximately 510,000 won per person.

According to data submitted by Gyeonggi Province on the 15th by Rep. Kim Han-seul of the People Power Party (proportional representation), the principal and interest that the province must bear through 2038 for repaying the Regional Development Fund, the Consolidated General Account of the Integrated Financial Stability Fund, and local bonds totals 7 trillion 41.5 billion won.

The repayment target principal calculated by Gyeonggi Province is 6 trillion 302.3 billion won. This consists of the Regional Development Fund of 3 trillion 545.2 billion won, the Consolidated Account of 1 trillion 96.1 billion won, and local bonds of 1 trillion 661 billion won.

Interest payments must be added to this. According to the province's projected annual interest payment figures, interest of 139.1 billion won is expected in 2026, including 81.8 billion won from the Regional Development Fund, 26.8 billion won from the Consolidated Account, and 30.5 billion won from local bonds.

In 2027, the interest burden increases to 178.6 billion won. Subsequent interest payments are scheduled through 2038, including 170.7 billion won in 2028, 141.9 billion won in 2029, 104.9 billion won in 2030, and 72 billion won in 2031.

However, the total of 7 trillion 41.5 billion won in the principal and interest repayment plan separately compiled by Gyeonggi Province is calculated primarily based on repayment amounts after 2027, creating a difference in calculation timing with the projected interest payment amount for 2026. Therefore, the total principal and interest scale including 2026 may vary depending on the province's detailed calculation criteria.

Converting the 7 trillion 41.5 billion won presented in the principal and interest repayment plan by the current Gyeonggi Province population of approximately 13.9 million results in approximately 507,000 won, or about 510,000 won per resident. For a family of four, this exceeds 2 million won. While this amount is not directly charged to residents, as it represents funds that Gyeonggi Province's finances must repay in the future, it can impact the fiscal flexibility available for other policy projects.

The Regional Development Fund comprises the largest share of repayment amounts.

Principal and interest for the Regional Development Fund amounts to 3 trillion 946.2 billion won, while the Consolidated Account of the Integrated Financial Stability Fund stands at 1 trillion 183.6 billion won. Local bond principal and interest is calculated at 1 trillion 911.7 billion won.

Repayment amounts from internal accounting and fund transactions between the Regional Development Fund and the Consolidated Account total 5 trillion 129.8 billion won, accounting for approximately 73% of total principal and interest.

However, for this reason, it is not appropriate to view the entire 7 trillion 41.5 billion won identically to 'debt' under the Local Finance Act. The Regional Development Fund and Consolidated Account represent internal accounting and fund transactions, while local bonds are externally sourced debt, each having distinct characteristics. This figure presents a concept showing the principal and interest that the general account must bear in the future by combining all of these.

Current borrowing balances are also substantial.

As of the end of June 2026, the local bond balance stands at 1 trillion 439.3 billion won. The Regional Development Fund borrowing balance is 3 trillion 545.2 billion won, and the general account loan balance of the Consolidated Account of the Integrated Financial Stability Fund is 1 trillion 131.2 billion won.

Notably, the Regional Development Fund borrowing has increased from 290.8 billion won in 2019 to 1 trillion 39.7 billion won in 2020, 1 trillion 785.3 billion won in 2021, 2 trillion 629 billion won in 2024, 3 trillion 320.6 billion won in 2025, and reached 3 trillion 545.2 billion won as of June of this year. This represents more than a 12-fold increase compared to 2019.

Local bonds have also increased rapidly since last year. Gyeonggi Province, which had no local bond balance through the end of 2024, issued 943 billion won in 2025 and again issued 496.3 billion won through June of this year, increasing the balance to 1 trillion 439.3 billion won.

The Consolidated Account loan balance has also increased from 455 billion won in 2021 to 985.3 billion won in 2025 and 1 trillion 131.2 billion won as of June of this year.

Recently, differing perspectives between former and current provincial administrations regarding Gyeonggi Province's fiscal situation are evident.

Former Gyeonggi Governor Kim Dong-yeon stated through his SNS on this day, "The current situation is not a fiscal crisis," noting that Gyeonggi Province's debt-to-budget ratio in 2025 is 12.86%, lower than the government's caution threshold of 25%. While acknowledging the fact of increased debt, he argued that local bond issuance and fund operations represent "investments in residents' quality of life and Gyeonggi Province's future."

However, the actual repayment burden remains with the province's finances going forward. Particularly as interest accrues depending on interest rates in addition to principal, future revenue conditions and securing repayment resources are expected to become major variables in Gyeonggi Province's fiscal management.