Regarding the Future Response Fund, Governor Lee Cheol-woo Stresses, “Guarantee Local Governments’ Share First”

【Financial News, Andong—Reporter Kim Jang-wook】“The local governments’ share must be guaranteed first before the Future Response Fund is established.”
The Gyeongsangbuk-do Provincial Government said Governor Lee Cheol-woo conveyed this position to MOIS Vice Minister Kim Min-jae, who visited the provincial government office on the 21st.
Vice Minister Kim visited Governor Lee to explain the purpose of the Future Response Fund and the proposed revisions to the LOCAL SUBSIDY ACT, and to request cooperation from local governments.
Governor Lee said, “I agree that investment is necessary for the nation’s future, but it is difficult to support a system that finances it by reducing local governments’ own-source revenues.” He emphasized, “Reducing the resources that local governments can use autonomously and having the central government redistribute them does not align with the spirit of decentralization either.”
He also expressed concern, saying, “If the system is revised, Gyeongsangbuk-do is expected to face the largest reduction among metropolitan local governments nationwide, with a decrease of at least 4.5 trillion won in ordinary local allocation tax.” He added, “The reduction in allocation tax could place a significant burden on local finances as a whole, including projects addressing regional issues and administrative services for residents.”
He reiterated, “True decentralization means guaranteeing a stable financial foundation so that local governments can design and invest in their regions’ futures on their own.” He further stressed, “The Future Response Fund should be pursued in a way that allows the central and local governments to share fiscal responsibility.”
Earlier, Vice Minister Kim visited Daegu City Hall on the 8th, met with Mayor Choo Kyung-ho, explained the purpose of the Future Response Fund and the proposed revisions to the LOCAL SUBSIDY ACT, and requested cooperation from local governments.

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