Jeonju City Council Protests Future Response Fund Over Local Tax Cut
A projected reduction of about 30조 5천억 원 in statutory local share tax revenue has triggered a sharp political backlash from local officials in South Korea. Democratic Party members of the Jeonju City Council, including Chairman Choi Joo-man, On Hye-jung, Jang Byung-ik, and Lee Sung-guk, held a press conference at Jeonju City Hall on the 14th to demand fiscal supplements and distribution improvements following the introduction of the Future Response Fund.
Projected Revenue Shortfalls And Budget Impact
Under the government’s proposal, contributions to the Future Response Fund would be deducted from national taxes before local share taxes are calculated.
For Jeonju specifically, the financial contrast is stark. Under previous allocation formulas, the city expected its local share tax to increase by roughly 2천200억 원 next year, but under the government proposal, the increase is projected to be limited to around 250억 원 안팎.
Local Autonomy Limits And Centralized Fund Control
The central government plans to supplement local finances through a dedicated local account totaling 15조 3천억 원, but city council members argue this mechanism fails to guarantee genuine fiscal autonomy (No Cut News). Out of that 15조 3천억 원 pool, only 3조 5천억 원 is allocated as the Local Future Growth Support Fund, which local governments can use with relative independence. The remaining funds consist of project expenses strictly earmarked by the central government.
Council members criticized the arrangement, stating that even without matching fund requirements, centralized control over spending purposes inevitably constricts local financial independence (No Cut News). They urged authorities to institutionalize a policy guaranteeing full national funding for all fund-backed projects.
Floating Population Demands And Regional Growth Strategies
Elected officials also challenged current tax allocation formulas for failing to account for actual daytime populations and regional hub responsibilities (No Cut News). While Jeonju maintains a registered resident population of approximately 62만 명, its monthly average floating population reached about 161만 명 in 2024. The city spends 300억~400억 원 annually to operate 9 metropolitan infrastructure facilities shared with neighboring cities and counties.
To address this imbalance, the council proposed establishing a new “3특 지역 지방거점도시” category within the allocation criteria for the Local Future Growth Support Fund, aligning with the government’s ‘5극 3특’ balanced regional growth strategy (No Cut News).
Tax Deficit Compensation And Legislative Actions
The council further demanded financial remediation for past revenue shortfalls (No Cut News). Jeonju lost more than 706억 원 in ordinary share taxes during the 2023 and 2024 fiscal years due to national tax deficits. Overall, the Jeonju lawmakers called on the government and the National Assembly to raise the statutory share tax rate, preserve general local revenue sources, fully fund grant projects nationally, update distribution criteria to reflect floating populations, and compensate past losses.
Budget and Accounts Committee Chairman Jang Byung-ik emphasized that local-led growth and fiscal decentralization are government pledges that must begin with protecting local finances, vowing to continue the protest until local fiscal rights are secured (No Cut News). The Jeonju City Council plans to adopt a formal resolution during its current extraordinary session and participate in upcoming nationwide rallies.
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