Gyeonggi governor faces backlash over residence as 'fiscal crisis' subsidy cuts loom
Gov. Choo Mi-ae is criticized over a 1.2 billion won ($889,000) official residence deposit while Gyeonggi considers reducing provincial support for local projects.
Gyeonggi Gov. Choo Mi-ae answers questions during a plenary session of the Gyeonggido Assembly in Suwon, Gyeonggi, on Sept. 2. [NEWS1]NEWS1
Gyeonggi Gov. Choo Mi-ae is under fire for cutting regional projects due to a “fiscal crisis,” then paying a 1.2 billion won ($889,000) deposit for her official residence using state money.
The province held a video conference with deputy heads of its 31 cities and counties on Thursday to discuss the 2027 budget and said it was “considering uniformly adjusting the provincial subsidy rate for each project to 30 percent,” the Gyeonggido Assembly said Sunday.
Under the proposal, a standard provincial subsidy rate of 30 percent would apply to city and county projects in which Gyeonggi currently covers more than 30 percent of costs. The province would also gradually adjust its contributions to state-subsidized projects for which it has no mandatory funding obligation.
The move could force cities and counties to scale back projects that currently receive 40 to 50 percent of their funding from the province or make up the shortfall with their own funds.
If the 30 percent cap were applied across the board, 421 projects, or 43.8 percent of the 961 city and county projects receiving provincial subsidies this year, would be affected. Yeoncheon County, Uijeongbu and Dongducheon, which have relatively weak finances, reportedly raised concerns during Thursday’s meeting.
Local governments are already voicing frustration.
“A significant portion of projects receiving provincial funding are programs directly affecting people’s livelihoods, including welfare,” said a local government official who requested anonymity. “Cities and counties with limited financial resources will inevitably have to scale back or eliminate some programs.”
“Unilaterally cutting budgets or terminating programs in the name of taking measures to overcome the fiscal difficulties could have a major impact on residents’ lives, so this is something that must be addressed,” said Anyang Mayor Choi Dae-ho, head of the Mayors Association of Gyeonggi Province. “We will urgently gather the concerns and positions of all 31 cities and counties in the province and issue an official response.”
A plenary session of the Gyeonggido Assembly is held in Suwon, Gyeonggi, on Sept. 2.NEWS1
The Gyeonggido Assembly has also expressed concerns about the proposed cap on provincial subsidies.
“This is unilateral and administrative-convenience-driven decision-making by the provincial government without considering the widely varying levels of fiscal independence among local governments,” council member Bang Seong-hwan of the People Power Party (PPP), who represents Seongnam, said during the Gyeonggido Assembly’s 393rd extraordinary session Friday.
“If provincial subsidy rates change drastically because of financial difficulties, it undermines confidence in the programs,” said Democratic Party lawmaker Lee Jae-young, who represents Bucheon. “The decision should be made based on the nature of each project.”
“Are they trying to save the big house by ruining the smaller ones?” said PPP lawmaker Yoon Jong-young, who represents Yeoncheon County.
Gyeonggi is currently reviewing all of its projects from scratch and considering consolidating public institutions, but the austerity drive has also drawn attention to the large official residence used by the province's Governor Choo Mi-ae.
After being elected Gyeonggi governor, Choo signed a jeonse (lump-sum housing deposit) contract in mid-June for a 156-square-meter (1,679-square-foot) apartment near the provincial government complex for 1.2 billion won. Gyeonggi reportedly covered the cost.
People Power Party members of the Gyeonggido Assembly hold a press conference at the council’s briefing room on Aug. 31.GYEONGGIDO ASSEMBLY'S PEOPLE POWER PARTY
Posts criticizing the arrangement have appeared on an online message board for Gyeonggi government employees.
“Does it make sense for Gov. Choo, who has cut various budgets while declaring a fiscal crisis, to live alone in an official residence worth more than 1.2 billion won?” one post read.
“Former governors Nam Kyung-pil and Lee Jae Myung, who is now president, commuted from their own homes, while former Gov. Kim Dong-yeon paid for his jeonse lease out of his own pocket,” one government employee said. “How does it make sense to use Gyeonggi’s budget to lease a 156-square-meter apartment while saying the province is in financial difficulty?”
Current and former provincial council members criticized the council’s decision.
“The province is in such financial difficulty that it is even considering adjusting the subsidy rates for funding that should go to cities and counties, so a large official residence for the governor does not seem appropriate given Gyeonggi’s current financial situation,” PPP provincial council member Lee Hye-won, who represents Yangpyeong County, said.
“If finances are tight, the governor should also be able to give up some conveniences,” former Gyeonggido Assembly member Ko Ju-no said. “Gov. Choo should disclose how the residence was selected and comparative information to show whether she applied to herself the same fiscal-emergency standards she has demanded of Gyeonggi residents.”
A Gyeonggi official stated that "the governor’s official residence was leased in accordance with the relevant regulations."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
