General account at 13.05 trillion won, special account at 1.69 trillion won

Province trims routine spending amid tighter fiscal conditions

Four priority areas: industry, welfare, culture and balanced rural growth

Gyeongnam pension to expand to 50,000 recipients; 2 billion won emergency loan fund added

Administrative Vice Governor Park Il-ung of South Gyeongsang Province briefs reporters at the provincial government press center Wednesday on the 2027 budget proposal — the first full-year budget of the ninth elected provincial administration. [South Gyeongsang Province]
Administrative Vice Governor Park Il-ung of South Gyeongsang Province briefs reporters at the provincial government press center Wednesday on the 2027 budget proposal — the first full-year budget of the ninth elected provincial administration. [South Gyeongsang Province]

South Gyeongsang Province announced Wednesday that it has drawn up a 14.74 trillion won ($11 billion) budget proposal for 2027 — the first full-year budget under the ninth elected provincial administration. The figure is 451.7 billion won, or 3.2 percent, higher than this year's budget, with a general account of 13.05 trillion won and a special account of 1.69 trillion won.

The province said it overhauled routine expenditures and redirected secured funds toward stabilizing livelihoods and building future growth engines, even as it faced difficult conditions: stagnant local tax revenues, a reduction in local allocation tax increases due to the creation of a new future-response fund, and a growing provincial burden from expanded national subsidy projects.

The secured funds are concentrated in four priority areas under the theme "A Great Leap Forward for South Gyeongsang with Its People": robust industry and vibrant livelihoods; comprehensive welfare and healthy daily life; cultural enjoyment and livable cities; and mutually beneficial balanced growth and prosperous farming and fishing communities.

For robust industry and vibrant livelihoods, the province allocated 507.1 billion won — up 76.9 billion won, or 17.9 percent, from this year — focusing on crisis response for key industries, securing future growth engines, and reviving the local economy for small business owners and small and medium-sized enterprises. Specific allocations include 19.4 billion won for fostering regionally innovative leading companies through research and development, 12.6 billion won for employment support in South Gyeongsang's key industries, and 3.1 billion won to establish a global small modular reactor manufacturing and inspection hub.

The budget also includes 3 billion won for developing a space industry cluster and 1.8 billion won for a naval vessel maintenance, repair and overhaul cluster. The funds aim to narrow wage and benefit gaps between prime contractors and subcontractors in the shipbuilding and aviation sectors, and to build SMR fabrication support and manufacturing parts quality testing infrastructure at the Changwon National Industrial Complex.

Additional allocations include 25 billion won for interest subsidies on small and medium enterprise development funds, 9.5 billion won for commercial district revitalization and traditional market environment improvements, and 2 billion won for the "Gyeongnam Emergency Livelihood Loan" — a program that lends up to 3 million won to residents in the bottom 20 percent of the provincial credit rating.

The social welfare, health and safety sector received 8.45 trillion won, up 185.2 billion won, or 2.2 percent, from this year, to provide comprehensive coverage of residents' daily safety, health and lifecycle welfare needs. Key items include 273.6 billion won for disaster-risk area improvements, 2.9 billion won to expand meal support for children during school vacations, 5.7 billion won to expand the Gyeongnam Provincial Pension, and 4 billion won for the 365 Safe Ward program. The Gyeongnam Provincial Pension will grow from 30,000 recipients this year to 50,000 next year.

The culture, tourism and sports and regional and urban development sectors received 710.6 billion won, up 57.3 billion won, or 8.8 percent, from the previous year, with a focus on developing tourism resources along the South Sea coast and broadening residents' access to cultural and sports activities. Allocations include 49.1 billion won for the Southern Region Wide-Area Tourism Development project, 14 billion won to develop a pilgrimage route through Admiral Yi Sun-sin's battle sites, and 8.5 billion won for a marine leisure tourism hub project. The Southern Region Wide-Area Tourism Development initiative will advance 13 projects, including establishing Jinhae's cherry blossom road as a signature destination.

The agriculture, forestry, fisheries, transportation, logistics and water resources sectors received 1.99 trillion won to support income stability for farmers and fishers, build a foundation for the future of rural and coastal communities, and promote balanced regional development. Key allocations include 255.4 billion won for basic public direct payments, 113.5 billion won for expanding and paving nationally supported local roads, 44 billion won for farmer and fisher allowances, and 1.4 billion won to establish a K-oyster specialized seafood cluster.

Administrative Vice Governor Park Il-ung of South Gyeongsang Province said local tax revenues have stagnated even as national tax receipts have grown, increases in local allocation tax grants have shrunk, and the provincial burden from national subsidy projects has risen, making fiscal management increasingly difficult. "In particular, the government's decision to redirect 30.5 trillion won — part of the local allocation tax base — into the newly created future-response fund has cut the province's allocation tax receipts by 532.8 billion won," Park said.

Park added that the province would maintain fiscal soundness while pressing ahead with livelihood stabilization and future investment, and would continue urging the central government to improve the fiscal structure — including restoring local allocation tax grants and expanding fire department funding. "This budget is the foundation for opening a great leap forward for South Gyeongsang together with its people," Park said. "We will communicate fully with the provincial assembly to ensure residents feel the change."

The 2027 budget proposal submitted by South Gyeongsang Province is set to be finalized on Dec. 15 after deliberation at the 438th regular session of the South Gyeongsang Provincial Assembly.


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