Seongnam Mayor Shin Sang-jin expressed strong concerns on September 9 regarding the ongoing controversy over provincial funding, suggesting that the necessity of Gyeonggi Province itself should be reconsidered.
In a post on his Facebook page, Mayor Shin criticized the province's move to reduce its funding support ratio, stating, "How about we consider abolishing Gyeonggi Province altogether?" He voiced his discomfort with the situation.
The Gyeonggi provincial government is proposing to lower its matching fund ratio due to worsening financial conditions, which could increase the financial burden on cities and counties to as much as 70-90% for certain projects. This has led Mayor Shin to call for a reevaluation of the current administrative structure of Gyeonggi Province.
He pointed out, "Gyeonggi Province claims it is facing financial difficulties and wants to lower the matching fund ratio to a maximum of 30%, shifting the remaining 70% burden onto cities and counties. For some municipalities like Seongnam, Hwaseong, and Yongin, the province may only cover 10%, leaving cities to shoulder 90% of the costs."
Mayor Shin specifically highlighted the structure of local taxes and administrative responsibilities. He noted, "In 2025, Gyeonggi Province's local taxes are essentially split 50-50 between provincial and municipal taxes. Cities collect a significant portion of taxes and are responsible for administrative tasks directly affecting residents' lives. If the province continues to push the majority of project costs onto cities, we must question this arrangement."
He raised fundamental questions about the necessity of maintaining the current administrative tier of 'do' (province) that has existed since the Joseon Dynasty. "Is it really necessary to keep the intermediate administrative level of 'do' in its current form?" he asked.
Mayor Shin argued that if the province retains authority over policies and projects while cities bear most of the costs and administrative responsibilities, a fundamental change in the local administrative system is required. He suggested that discussions should focus on simplifying the administrative structure to center around basic local governments, integrating the national administrative system with regional governance.
His vision includes restructuring the national local administrative system into approximately 50 basic local governments based on regional integration.
Mayor Shin believes this controversy should not be viewed merely as a budgetary issue for Seongnam but as an opportunity to reform the local administrative system. He emphasized, "We should use the current debate over the provincial funding ratios of 10%, 30%, and 50% as a chance to fundamentally redesign South Korea's local administrative system."
As the provincial funding ratio decreases, cities and counties will need to allocate additional local funds to continue projects, inevitably increasing their financial burdens. This is particularly concerning for projects closely tied to citizens' lives, such as welfare, childcare, and support for people with disabilities, as increased local financial burdens can lead to greater fiscal strain on municipalities.
With the provincial funding ratios potentially dropping to 10%, 30%, or 50%, the growing financial burden on cities and counties is likely to intensify discussions about the discrepancies in authority and cost-sharing between provincial and local governments.
Citizens of Seongnam are also voicing their opinions, urging that the issue of reduced provincial funding should not be seen merely as a conflict between local governments but as a matter of financial and authority distribution. One citizen remarked, "We need to examine whether it is appropriate for Gyeonggi Province to impose most of the costs on cities and counties while pursuing projects. Ultimately, the shortfall will be covered by citizens' taxes, making this a significant issue from the citizens' perspective." Another citizen added, "If Seongnam decides on its own projects, it is right for the city to take responsibility. However, when the province makes policy decisions and shifts costs to cities and counties, that is a different matter. We need to clarify the roles of the province and cities at this opportunity."
* This article has been translated by AI.
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