Gyeonggi and Chungbuk governors seek fiscal reform

Gyeonggi Province Governor Chu Mi-ae and Chungcheongbuk Province Governor Shin Yong-han met on the 7th to discuss joint measures to overcome local fiscal crises and strengthen financial decentralization.

The governors agreed to propose several structural reforms to the central government and National Assembly. Key proposals include allocating 5% of the national corporate tax to metropolitan local governments to ensure that regions hosting major industries, such as semiconductors and secondary batteries, receive adequate tax revenue to support industrial infrastructure. They also advocated for a gradual increase in the local consumption tax rate from the current 25.3% to 40.3%.

Additionally, the leaders addressed the issue of firefighter labor costs. Governor Chu emphasized that since firefighters have transitioned to national status, the central government should bear the responsibility for their personnel expenses. Governor Shin indicated that Chungcheongbuk Province will continue discussions after analyzing the most effective way to utilize resources for firefighting and housing welfare.