Seoul City drafts largest-ever budget for 2020

Seoul Mayor Park Won-soon announces the capital's 2020 budget plan at Seoul City Hall, Thursday. / Yonhap

By Kang Seung-woo

Seoul City has drawn up a record budget nearing 40 trillion won ($34.4 billion) for next year, the city government said, Thursday, as part of its efforts to improve social welfare in the capital through an expansionary fiscal policy.

According to the Seoul Metropolitan Government, its annual budget for 2020 will be 39.5 trillion won, up 10.6 percent from 35.7 trillion won for this year. In addition, if approved, the budget will see a double-digit growth for the second straight year following a 12.3 percent increase in 2019.

The local government plans to submit its budget plan to the city council today.

The city will fund the expansion by issuing municipal bonds worth 3 trillion won at an annual interest rate of 1.8 percent, it said.

By sector, Seoul City will spend 12.88 trillion won on social welfare, up 1.7 trillion won from this year. It will be the first time for its social welfare budget to surpass the 12 trillion won mark.

In addition, 2.13 trillion won will be spent to create 393,000 jobs, while budgets for housing redevelopment, industrial economy and general administration also increased significantly.

By project, the city said it plans to inject 2.5 trillion won into increasing housing support for newlyweds and 2.2 trillion won into setting up a more stable childcare system. The city has also earmarked 497.7 billion won for supporting the younger generation and 811.1 billion won for improving air quality.

“Supporting young people and newlyweds who are beginning their adult lives is not only a solution for individuals and families but a way to begin a cycle of growth for society and the country,” Seoul Mayor Park Won-soon said in a press briefing.