SUWON — Gyeonggi Province Governor Choo Mi-ae and provincial council member Kim Tae-hee of the Democratic Party clashed sharply over the province's fiscal condition at a provincial questioning session on the 2nd.
Their differing views on the size of the province's debt and the criteria for judging a fiscal crisis escalated into a dispute over "window-dressing indicators," at times souring the mood in the chamber.
Kim, who represents Ansan District 2, cited the province's debt as about 3.9 trillion won in the regional development fund, about 1.8 trillion won in the integrated account and about 1.9 trillion won in local bonds. Internal transactions within the integrated account are generally not counted as debt, Kim said, arguing that Gyeonggi Province does not currently meet the criteria for a fiscal caution or fiscal crisis designation.
Choo countered that fiscal health cannot be judged by accounting classifications alone. "What matters is not which category it falls under, but that interest accrues and the money must eventually be repaid," the governor said. "Residents need to know the actual fiscal situation accurately."
The issuance of local bonds also became a point of contention. "There were three issuances in 2025 and two in the first half of 2026," Choo said. "We need to look at the fact that bonds were issued five times in a year and a half." The governor added, "The scale is a problem, but what matters more is the pace at which the debt is growing."
The argument then shifted to how fiscal indicators should be read. When Choo used language suggesting the figures amounted to "window dressing" while explaining the current fiscal situation, Kim immediately objected. "You should not be using the word 'window dressing' right now," Kim said. As the exchange dragged on, Vice Chairwoman Ko Eun-jung intervened, asking both sides to "continue the questions and answers with mutual respect."
The two also split over the outlook for acquisition tax revenue. "Acquisition tax was about 11 trillion won in 2021, and calling this year's level of 8 trillion won a 30% decline is a stretch," Kim said. "The year 2021 was an exceptional period. Before that it was 6 trillion to 7 trillion won, and afterward it was around 8 trillion won."
Choo, by contrast, stressed that the acquisition tax is a core revenue source for the province. "The era of real estate development is over," the governor said. "The outlook for future revenue is very bleak." The remarks pointed to the need to restructure finances in preparation for a weakening revenue base.
Kim described Choo's push for fiscal restructuring as "a bone-deep effort." Kim nonetheless raised concerns about cuts to some programs, including the Climate Action Opportunity Income, and about insufficient prior consultation with the council.
Choo asked the council for cooperation. "A partnership is meaningful not when you share only the good times, but when you share responsibility as well," the governor said.
At a news conference on the 5th of last month, Choo had described the province's finances as an emergency. Saying a large-scale reduction in the supplementary budget was unavoidable, the governor pledged to streamline the organization, restructure spending, realign the budget around livelihood priorities and improve the revenue structure.
Meanwhile, the provincial council is set to review and vote on a total of 160 items, including the supplementary budget bill, 55 ordinance bills and 94 consent motions, during its 393rd extraordinary session, which runs through the 18th.
