Choo Mi-ae rebuffs claims that welfare policies caused Gyeonggi Province's fiscal crisis

Gyeonggi Province Gov. Choo Mi-ae, who declared a fiscal emergency in the province, rebuffed claims that its financial difficulties stem from excessive welfare policies, calling it "pathetic that some are trying to turn this into nothing more than a political squabble."

Choo wrote on her Facebook page Thursday that "the fiscal crisis was not caused by expanding welfare. The number of residents who need welfare and public services is growing rapidly."

She said Gyeonggi Province is home to the largest population of any local government in the country, records the highest number of births nationwide and is also seeing a rapid influx of elderly residents from other regions.

"As the number of children and elderly residents grows together, the fiscal resources needed for child care, education, caregiving, medical services, transportation and residential support are also rising sharply," she added.

She also said that while spending demands keep mounting, tax revenue generated by the province's industrial growth does not flow back to Gyeonggi. "We bear heavy responsibilities but do not have the fiscal authority to meet them," she said.

"We cannot sustain this as it is. The tax revenue structure must be fundamentally reformed so that Gyeonggi Province — the largest local government in South Korea — can have fiscal authority commensurate with its scale and role," she said.

Choo declared a "Gyeonggi Province fiscal emergency" on Thursday and that day ordered the immediate launch of a "fiscal crisis response task force" led by the economic vice governor to establish an emergency fiscal management framework.