Daegu Metropolitan Council Calls for Energy Resources Corporation to Be Located in Daegu

【Financial News Daegu=Reporter Kim Jang-wook】"Daegu is the optimal location for energy policy!"
Daegu Metropolitan Council issued a statement on the 16th calling for the Energy Resources Corporation to be located in Daegu and urging the government to confirm Daegu as its location while adhering to the fundamental principle of balanced national development.
That day, Daegu Metropolitan Council called for the Energy Resources Corporation to be located in Daegu, citing the stability and economic efficiency of integration as well as continuity in energy policy. It also urged the government to stop encouraging wasteful competition among local governments and strictly adhere to the consistent fundamental principle of balanced national development.
Council Chairman Lim In-hwan emphasized, "Daegu is a prepared energy innovation city with all the necessary energy expertise, management functions and policy symbolism," adding, "If the Energy Resources Corporation is established, there can be no doubt that Daegu Innovation City is the rational choice and optimal location."
Daegu Metropolitan Council said that among the entities subject to integration, Korea Gas Corporation (KOGAS) has greater capabilities than Korea National Oil Corporation (KNOC). It added that KOGAS has already established and stably operated a nationwide integrated supply-chain management system based in Daegu, making it the appropriate center for the integration.
Daegu also highlighted its clear advantages as a candidate location, noting that it has led South Korea's energy policy by being the first local government in the country to implement the Solar City policy and a carbon-emissions trading program. It has also successfully hosted major international events, including the World Energy Congress and the World Gas Conference, building a strong global energy network.
Daegu Metropolitan Council also approved a motion proposed by the Special Committee on Budget and Accounts at the third plenary meeting of the 328th regular session held that day, calling for reconsideration of the Future Response Fund, which it said could undermine local autonomy.
The council urged the government to improve the system so that the establishment of the Future Response Fund would not reduce local allocation tax revenues. It also called for a review of the fund's operation after fully gathering the views of local governments.
The motion was prepared amid concerns that creating the fund under the government's announced "2027 Future Response Fund Operation Plan" could reduce the resources that must be allocated to local governments under the current Local Subsidy Act. This could undermine the autonomy of local finances and disrupt local projects and essential administrative services.
Daegu Metropolitan Council expressed concern that, if a decline in local allocation tax revenues becomes a reality, it could place a significant financial burden on local governments that are already facing difficult fiscal conditions and using local-government debt to fund budgets for pressing projects.
Through the motion, Daegu Metropolitan Council urged the government to: immediately improve the relevant system so that the establishment of the Future Response Fund does not reduce local allocation tax revenues; stop attempts to offset the decline in local allocation tax revenues through rigid and uniform fiscal management led by the central government; and fully reconsider the fund's operation plan by transparently disclosing its impact on local government finances and sufficiently gathering the views of local governments to develop a mutually beneficial approach.

[email protected] Kim Jang-wook Reporter