Yongin Mayor Lee Sang-il: "Corporate Local Income Tax Reform Will Draw Strong Backlash from Cities and Counties"

Yongin Special City Mayor Lee Sang-il said on the 10th, "Gyeonggi Province's plan to turn half of the 31 cities' and counties' corporate local income tax into a shared revenue source in order to cover its budget deficit will meet with backlash from each city and county."

Appearing on OBS Radio's ‘Kim Jun-ho's Good Morning OBS’ that day, Mayor Lee made clear his opposition to Gyeonggi Governor Choo Mi-ae's recent mention of amending the corporate local income tax to cover a shortfall in tax revenue.

To the host, who asked for his opinion on the issue of turning Gyeonggi Province's corporate local income tax into a shared revenue source, Mayor Lee said, “Gyeonggi Governor Choo Mi-ae spoke of a 7 trillion won budget deficit and called it an emergency situation, but we must examine in detail the nature of that debt and its repayment period,” adding, “Gyeonggi Province has carried out many cash-based support projects since the 7th and 8th popularly elected administrations, which worsened its financial situation. Rather than resolving this through expenditure restructuring, it is trying to take half of the corporate local income tax from the 31 cities and counties in the province, and this will provoke strong backlash from the cities and counties.”

Mayor Lee said, “When you look at Gyeonggi Province's cash-based support projects, there are quite a few cases where the cities and counties bear 70% of the total project cost. This is a situation where Gyeonggi Province takes the credit while placing the burden on the cities and counties,” and he said, “All of these policies must be reexamined.”

Regarding Gyeonggi Province securing its own financial resources, Mayor Lee emphasized, “It should consult with the government and pursue a plan to convert Gyeonggi Province, currently a non-grant-receiving entity, into a grant-receiving entity so that it can secure its own tax revenue sources.”