Ruling Democratic Party of Korea Weighs Introducing Earmarked Tax Linked to Fire Insurance to Bolster Firefighting Finances

[Financial News] The Democratic Party of Korea is considering ways to secure new sources of tax revenue, including introducing an earmarked tax linked to fire insurance, to bolster firefighting finances. The aim is to overhaul a system under which local governments shoulder a substantial share of personnel costs and budgets for equipment and facilities, even after firefighting officials were reclassified as national civil servants. 
Kim Min-seok, leader of the Democratic Party of Korea, and the party's policy committee met with three firefighters' labor unions at the National Assembly on the 23rd to discuss specific ways to improve funding. The firefighters' unions cited overseas examples in which a certain percentage of fire insurance premiums is used for fire safety activities, and the party said it would consult with the fiscal authorities on ways to secure stable funding, including the possible use of tax measures due to expire. Heo Young, senior vice chair of the Democratic Party of Korea's policy committee, told reporters after the meeting, "The Special Committee on Budget and Accounts has also decided to explore various ways to secure funding."
Expanding central-government funding in line with the share of responsibilities that are national was also presented as a policy direction. The plan is to classify firefighting duties as national, local, or shared responsibilities and strengthen financial support for areas that the national government is responsible for. Heo said, "The direction is taking shape that the national government should, of course, take greater responsibility and provide funding for areas that fall under national responsibilities." However, he drew a line at having the central government cover all personnel costs, saying, "Since local responsibilities clearly exist, that view was not conveyed directly."
Kim ordered the formation of a Fire Reform Committee under the party's policy committee that day. After holding additional meetings with firefighters in the field, the committee plans to conduct a comprehensive assessment of funding, staffing, facilities, equipment, and safety issues, draw up specific improvements, and submit them for party-government consultations.
[email protected] Jiwon Song Reporter