The North Gyeongsang Provincial Government building. [North Gyeongsang Province]
The North Gyeongsang Provincial Government building. [North Gyeongsang Province]

North Gyeongsang Province has submitted a 14.85 trillion won ($11.1 billion) budget proposal for 2027 to the provincial assembly, an increase of 817.2 billion won, or 5.8 percent, from this year's base budget, the province announced Thursday.

By account type, the general account rose 641 billion won, or 5.2 percent, from the previous year, while the special account grew 176.2 billion won, or 10.5 percent.

Own-source revenues such as acquisition taxes remained flat from the previous year due to a delayed recovery in the real estate market, but the overall budget expanded as national subsidies rose 8.7 percent in line with the central government's expansionary fiscal stance.

The province allocated the budget across four priority areas: industrial transformation, livelihood transformation, spatial transformation and community transformation. The plan is to concentrate fiscal resources on strengthening future industrial competitiveness while revitalizing the local economy and stabilizing residents' daily lives.

In the industrial sector, the budget focuses on nurturing advanced industries including AI, semiconductors, biotech and robotics.

Some 4 billion won was set aside to build the Pohang NEO AI data center, and 11.14 billion won was earmarked to establish an AI transformation demonstration industrial complex in North Gyeongsang Province. Another 5.92 billion won will go toward building a self-sustaining K-semiconductor ecosystem, and 10.36 billion won will support the development of a global healthcare biomedical engineering research institute.

In the livelihood economy sector, the budget targets job creation, financial stability for small business owners and the stimulation of local consumption.

Some 135.3 billion won was allocated to support the issuance of local gift certificates, and 11.1 billion won was set aside for regional innovation and locally tailored job creation projects. An additional 1.8 billion won will subsidize card transaction fees for small-scale merchants to ease their operating costs.

The spatial transformation sector centers on building a broad regional economic zone linking airports and seaports, alongside efforts to boost the tourism industry.

Some 900 million won was earmarked to attract cargo to Yeongil Bay Port via Arctic shipping routes, and 600 million won was allocated to revitalize Pohang-Gyeongju Airport. The province also plans to invest 5.1 billion won to help the tourism industry recover in wildfire-affected areas and the northern part of the province.

The community transformation sector directs funding toward expanding welfare, healthcare and care infrastructure to address the low birth rate and an aging population.

Some 6.6 billion won was allocated for a senior nutrition meal program, and 9.35 billion won will support land acquisition for the establishment of a medical school at Gyeonguk National University. Another 15.96 billion won was set aside to strengthen public healthcare cooperation, and 330 million won was earmarked to build an integrated care system tailored to North Gyeongsang Province.

"We boldly cut routine expenditures and concentrated resources on restoring the livelihood economy, creating jobs and securing future growth engines such as AI and advanced industries," North Gyeongsang Province Governor Lee Cheol-woo said. "Through the four great transformations — industrial, livelihood, spatial and community — we will deliver changes that residents can feel."

The 2027 budget proposal is set to be finalized on Dec. 9 after review by the standing committees and the budget and accounts special committee of the provincial assembly.


kbj7653@heraldcorp.com