Incheon Metropolitan City submits 17 trillion KRW supplementary budget

Incheon Metropolitan City has submitted its second supplementary budget, totaling 17.0241 trillion KRW, which represents a 7.3% increase from the previous budget. While the city administration highlighted that it did not issue any new local government bonds, critics and city officials note that the budget relies on 330 billion KRW drawn from internal funds, such as the Integrated Management Fund and the Regional Development Fund. This movement of funds is characterized as internal debt that must be repaid.

The budget includes 77.9 billion KRW to resume cashback benefits for the Incheon e-Eum local currency program. However, this reallocation has led to budget cuts for several major infrastructure and welfare projects. Notable reductions include the Songdo Waterfront project, the K-Bio Lab Hub, and the expansion of public sewage treatment facilities in Songdo. Additionally, social welfare programs such as postpartum care support and child meal subsidies were not included in this supplementary plan.

Financial pressure is being driven by a shortage in tax revenue, particularly from acquisition taxes due to a downturn in the real estate market. City officials have indicated that issuing local government bonds may become unavoidable during the formulation of next year's main budget to support essential social overhead capital (SOC) projects.