"Even if the semiconductor industry makes a profit, the tax revenue of Gyeonggi Province does not increase"... Chu Mi-ae urges a revision of local income tax

Gyeonggi Governor Lee Myung-bak has been critically assessing the deteriorating financial situation in Gyeonggi Province, highlighting structural issues within the current local taxation system. On September 9th, via her official Facebook page, Lee emphasized that despite being the hub of advanced industry ecosystems in the nation, Gyeonggi's revenue has remained stagnant, accumulating only administrative and safety responsibilities and mounting debts.

She repeatedly urged the government to dismantle the usual property tax exemption body and reform the tax system. Lee pointed out that Gyeonggi bears the burden of sustaining industries, constructing supporting infrastructures, and managing increasing populations and industrial facilities. She further noted that while businesses prosper and increase tax revenue, it does not return to Gyeonggi, nor does the growing property tax benefit the province.

Lee specifically criticized the province's exclusion from benefiting from increased national tax revenues (19.24% of which is allocated) and its classification as a "tax-exempt body." She explained that while other local governments receive subsidies, Gyeonggi does not, leading to massive annual subsidies of nearly 66 trillion won.

She cited fire department personnel costs as a prime example, with Gyeonggi bearing the hefty salary costs of about 17% (10,000+) of the nationwide workforce. These personnel costs exceed 1 trillion won annually, a burden that other regions' municipalities alleviate through property tax revenues, but Gyeonggi lacks significant subsidies, exacerbating its structural debt problem.

Moreover, Gyeonggi is obligated to contribute billions of won to the regional development fund, further adding to its financial strain. Lee emphasized that while Gyeonggi's economic growth and increased revenue might seem astronomical, the province remains a "piggybank millionaire," perpetuating an unfair double paradox. She reiterated that Gyeonggi's efforts in building industry bases and creating jobs only result in more burdens and debt.

She stressed that Gyeonggi's unique circumstances necessitate a change in the local taxation framework, urging that areas with burdens should receive corresponding resources and that the entire local government budget should be recognized as justifiable.