Kim Rahn is the managing editor of The Korea Times. Since joining the company in 2003, she has covered various beats including the presidential office, Seoul city government, the Bank of Korea and the tourism industry. In 2014, she won the Society of Publishers in Asia (SOPA) award for her coverage of the ordeals of migrant women in Korea.
Seoul budget shifts to welfare
By Kim Rahn
Seoul Mayor Park Won-soon shifted the weight of the capital’s 2012 budget to welfare, safety and job creation from construction-oriented projects.
Park said Thursday that the city submitted its budget bill to the Seoul Metropolitan Council, with the total set at 21.7 trillion won ($18 billion), up 5.9 percent from this year.
The budget for welfare will increase 13 percent to 5.1 trillion won from 4.5 trillion won, accounting for 26 percent of the total spending.
“This bill is significant in that it is the first step of shifting Seoul City’s paradigm from being construction-oriented to human- and welfare-oriented,” the mayor said during a press conference at City Hall.
Less money on construction
Park said the budget aims to not waste citizens’ tax, saving money from projects that are not urgent or necessary and instead focusing on welfare, safety and jobs.
To do so, the city government will set up a public investment management center to review the economic feasibility and effect of facility construction projects which require huge funding.
“The plan comes as I think large construction projects, which are underway or planned, have weakened the city’s financial health rather than improved citizens’ life,” Park said.
A group of experts will overhaul some suspended projects and decide whether to resume them, when to resume them, and how to change them, if necessary.
Such projects include the Han River Art Island requiring a total of 673 billion won, and a canal linking central Seoul and the West Sea requiring 175 billion won ― pet projects promoted by former Mayor Oh Se-hoon.
“I myself will cut my expenses as a mayor by 20 percent while reducing the size of my office,” he said.
More money for welfare
The city plans to spend 579 billion won in building 80,000 public rental houses, and some 27 billion won subsidizing tuition at the University of Seoul and providing other financial support programs for collegians.
“We’ll use 100 billion won for free school lunches for all elementary students and middle school first graders. We’ll also set up more childcare centers with 89 billion won,” the mayor said.
Safety and disaster control is the sector to see the largest increasing rate ― a 44.3 percent hike to 739 billion won from 512 billion won.
“From natural disaster to people’s health, we need to spend more on prevention than for recovery after damage occurs,” he said.
He said the budget will be used to prevent flooding and landslides, replace old facilities, and provide free vaccinations for children under 12.
To create more jobs, the city will allocate 30 billion won for social investment funds, planning to collect an additional 50 billion won in donations from the private sector.
Park said the city will try to reduce debt, but added public transport fare hikes need more review because subway operators and bus companies should first make efforts for more efficient management.