[Provided by Gyeonggi Province]
[Provided by Gyeonggi Province]

Gyeonggi Province has activated a dedicated task force to address its fiscal crisis, entering emergency response mode following a special directive from Gov. Choo Mi-ae after she declared a provincial fiscal emergency.

The task force plans to draw up a comprehensive fiscal normalization strategy — covering short-term expenditure restructuring through to medium- and long-term revenue and institutional reform — by the end of August.

The province held the task force's inaugural meeting at the Gyeonggi Provincial Government building in Suwon on Monday, chaired by Vice Governor for Economic Affairs Ju Hyeong-cheol, to discuss the response strategy.

"The governor declared a 'Gyeonggi Province fiscal emergency' on Wednesday," Ju said. "This is not just a problem for this year — conditions will not improve next year either, so if we do not act now, the crisis will become permanent. We need to pinpoint the exact causes to find the right solutions. The most fundamental cause is a local fiscal system that has fallen behind the times."

He explained that as the province enters the AI era, the nature of industry and the way added value is created have changed and welfare demand has surged, yet the local fiscal system remains calibrated to the development era.

"The two-pronged solution to overcoming this crisis is to fundamentally reform the outdated local fiscal system and to break through immediate problems through budget restructuring," Ju said. "A crisis is the best opportunity for reform, and we can push through this grave fiscal predicament when every member of the provincial government and its affiliated agencies unites behind a single purpose."

He added that the governor had directed the task force to begin operations immediately and produce effective countermeasures by the end of this month, and outlined four core priorities. "We will build an effective implementation framework within three weeks to protect the lives of Gyeonggi residents and the province's future," he said.

The four core priorities are: aggressive project and fiscal restructuring; expanding revenue for the AI era; strengthening solidarity and cooperation; and voluntary cost savings by all members of the organization.


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