Kim Dong-yeon defends Gyeonggi fiscal policy against Chu Mi-ae

Former Gyeonggi Province Governor Kim Dong-yeon has issued a public rebuttal against current Governor Chu Mi-ae regarding the province's fiscal management. Chu has attributed Gyeonggi's current financial difficulties to the expansionary fiscal policies implemented during Kim's administration.

Kim defended his tenure, stating that expansionary spending was a “responsible choice” intended to serve as a “breakwater for public livelihood” during crises such as COVID-19, high interest rates, and high inflation. He argued that while debt increased, the funds were invested in essential areas including infrastructure, social welfare, and future industries like semiconductors and renewable energy.

Addressing concerns of a fiscal crisis, Kim noted that Gyeonggi's debt-to-budget ratio for 2025 is projected at 12.86%, which is lower than the national average for provinces (15.52%) and significantly lower than Seoul (21.62%). He emphasized that the province remains well below the government's cautionary threshold of 25%. However, Kim acknowledged the vulnerability of the province's tax structure, noting a significant decline in acquisition tax revenue and an increase in the provincial burden for national subsidy projects, calling for collaborative solutions between central and local governments.