Incheon City Sets Next Year's Budget at 15.9 Trillion Won, the Largest Ever

【Financial News, Incheon = Han Gab-soo, Staff Writer】 Incheon City has set its 2027 budget at 15.9 trillion won, up 574 billion won (3.8%) from the previous year. The largest budget in the city’s history, it expands investment in social welfare and future industries while cutting spending in some areas, including land and regional development.
Incheon Mayor Park Chan-dae held a press conference in the city hall briefing room on the 5th and announced details of the 2027 budget proposal.
The biggest feature of next year’s budget proposal is its focus on investment in welfare and future industries. The social welfare budget rose 10.1% (636.9 billion won) from the previous year to 6.9678 trillion won. That is about 2.6 times the overall budget growth rate of 3.8%.
The budget for artificial intelligence (AI), biotech, content and energy (ABC+E) industries—the key pledge of the ninth popularly elected administration—as well as support for small and medium-sized enterprises, was also increased 13.1% to 415.4 billion won. The aim is to secure future growth engines for Incheon by fostering advanced industries, strengthening corporate competitiveness and creating jobs.
By contrast, the budget for land and regional development was cut 14.0% (195.7 billion won) from the previous year. Budgets for agriculture, forestry, oceans and fisheries, and education were also reduced by 9.7% (14.8 billion won) and 7.4% (65 billion won), respectively.
Support for Incheon e-eum, which is closely tied to residents’ daily lives, will also be expanded. The city has allocated 210 billion won for cashback to ensure support continues throughout all 12 months of the year. It will maintain the 10% cashback rate while raising the monthly spending limit from 300,000 won to 500,000 won.
However, despite the larger budget, the city’s fiscal situation remains difficult. A substantial portion of the increase comes from expanded government transfers, including general local allocation taxes and national subsidies, while growth in the city’s own revenue has been modest. The burden of mandatory statutory expenses has also grown, limiting the funds the city can use at its discretion.
Mayor Park described the current fiscal situation as “a set of conditions in which drawing up a budget is more difficult than at any other time in the city’s history.” He explained that the city had previously covered funding shortfalls through special accounts, funds and urban development projects, but that a substantial portion of those resources had also been depleted.
Accordingly, the city plans to maintain as much as possible the welfare and livelihood budgets directly tied to residents’ daily lives, secure funding for future investment by adjusting projects, and make planned use of local bonds for necessary projects. It also plans to secure as much national funding for Incheon as possible during the National Assembly’s budget deliberations to obtain additional resources.
Meanwhile, the 2027 budget proposal submitted by Incheon City is expected to be finalized by December 15 after review by the city council.
Mayor Park Chan-dae said, “Although fiscal conditions are difficult, we have protected the welfare and safety budgets essential to residents’ daily lives while beginning to invest in the future.”
[email protected] Han Gab-soo Reporter