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[Mokpo MBC News] ◀ Anchor ▶ The Jeonnam-Gwangju Integrated Special City, set to launch on July 1, is set to begin its journey burdened with a heavy debt of over 3.6 trillion won. The transition committee of Governor-elect Min Hyung-bae disclosed the city's severe financial situation and stated that it would decisively overhaul any failing or overlapping projects. Reporter Ju Ji-eun summarizes the story. ◀ Report ▶ With the launch of the Jeonnam-Gwangju Integrated Special City just about ten days away, the first topic raised by Governor-elect Min Hyung-bae's transition committee was the massive debt of Gwangju and Jeonnam. [ Tong CG ] The projected revenue for Gwangju and Jeonnam in the second half of this year is merely around 103 billion won, while mandatory expenditures exceed 500 billion won. With expenses exceeding income, there is a shortage of over 400 billion won in funds by the end of this year. As of the end of last year, the total outstanding debt of Gwangju and Jeonnam already stood at approximately 3.65 trillion won. The debt ratio stands at 21.7%, the highest in the nation, reaching just below the 25% threshold designated by the Ministry of the Interior and Safety as a "local government under debt caution." Furthermore, following the merger, the fiscal self-reliance rate is set to shrink to 27.3%, the lowest level in the country. ◀ st-up ▶ "The Transition Committee has identified the fiscal issue as one of the most urgent tasks to be resolved since the launch of the unified special city." To immediately implement new policies or pledged projects, more debt must be incurred, but even this is not easy. ◀ SYNC ▶ Baek Seung-ju, Vice Chairman of the Jeonnam-Gwangju-Daejeon Transition Planning Committee "Issuing local bonds is inevitable to cover essential needs by the end of the year and to push forward with campaign pledges and new policy initiatives, but the local bond situation has also significantly deteriorated." Regarding the 20 trillion won in financial support being requested from the government to overcome the crisis, even the method and timing of the support remain unclear. Above all, we must first clear the hurdle of the National Assembly, specifically the amendment of the Local Government Grant Act. ◀ SYNC ▶ Baek Seung-ju, Vice Chairman of the Jeonnam-Gwangju-Daejeon Transition Planning Committee "We are continuously demanding the institutionalization of integrated support funds through the amendment of the Local Government Grant Act." The Transition Committee has decided to boldly play the card of consolidating similar and overlapping projects. They have also decided to launch a strong restructuring to clean up projects with sluggish execution. In the long term, the plan is to increase self-generated revenue by attracting high-tech companies, such as those in semiconductors and artificial intelligence. Attention is focused on whether the Jeonnam-Gwangju Integrated Special City, which is expanding into the nation's third-largest metropolitan local government in terms of fiscal scale following Seoul and Gyeonggi, can overcome its immediate financial crisis and achieve its goal of "overwhelming growth." This is Ju Ji-eun for MBC News.
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