Park Chan-dae, the mayor of Incheon and chairman of the Korea Association of Mayors, urged the government and National Assembly to address concerns over the fire budget and the potential negative impact of the Future Response Fund on local finances.
During a press conference on October 19 at the Korea Press Center in central Seoul, Park pointed out that despite the transition to a national fire service in 2020, financial responsibilities remain with local governments.
He addressed the controversy surrounding fire budgets, which arose following the death of firefighter Kim Jin-seok during a factory fire in Bucheon and comments made by Gyeonggi Province Governor Lee Jae-myung. Park noted that local governments' fire budgets amount to 8.6 trillion won this year, with only 900 billion won, or just over 10%, coming from national support.
Park added, "While the national government has increased on-site rescue personnel by about 20,000, it has only provided around 500 billion won in support, leaving local governments to cover an additional 760 billion won. This has resulted in a decrease in essential project funding, such as replacing aging fire trucks."
Regarding measures to enhance fire funding, he mentioned a proposal to redirect the local education tax from tobacco consumption tax to fire funding, which did not reach consensus. He emphasized that efforts to secure fire funding are ongoing with the central government and the National Assembly.
Park expressed deep gratitude for the dedication of firefighters who risk their lives to protect citizens and extended condolences for the firefighter who lost his life during the Bucheon fire.
Additionally, Park raised concerns about the potential deterioration of local finances due to the government's plan to establish a 162 trillion won Future Response Fund.
The government aims to revise the calculation of local allocation taxes by deducting the fund from domestic tax revenues, which would reduce the overall amount allocated to local governments. Under current law, a certain percentage (19.24%) of domestic taxes is allocated to local governments, meaning a decrease in the tax base would lead to lower funding.
Park explained, "If the excess tax revenue that contributes to the fund is excluded from the domestic tax base, the resulting local allocation taxes will decrease. I have clearly communicated to the government and the National Assembly the need to maintain the existing allocation tax calculation method and to increase the allocation tax rate in line with the national tax-to-local tax ratio as part of national policy objectives."
Finally, Park stated, "The Future Response Fund raises questions about how to handle excess tax revenue generated by the semiconductor boom. It is essential for the central government, National Assembly, and local governments to collaborate on this issue, and a decision is expected by December."
* This article has been translated by AI.
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