City prioritizes efficient use of limited resources, focusing on economic recovery, future growth industries and residents' daily safety
Daejeon will channel its 2027 budget primarily into economic recovery, the development of AI and science-based future industries, and support for youth employment and housing.
The city submitted its 2027 budget proposal to the Daejeon City Council on Wednesday, setting total spending at 8.01 trillion won ($5.99 billion) — a 950.3 billion won, or 13.5 percent, increase from the previous year.
By account type, the general account stands at 6.56 trillion won and the special account at 1.45 trillion won, up 14.2 percent (817.1 billion won) and 10.1 percent (133.2 billion won), respectively, from the prior year.
The budget was drawn up amid constrained local allocation tax conditions stemming from changes in national fiscal policy, with the city aiming to distribute its limited resources more efficiently.
Reviving the local economy — boosting neighborhood commerce and businesses
The city will step up investment in the livelihoods sector to ease the financial burden on small business owners and self-employed workers and inject vitality into the local economy.
Recognizing that reducing the burden on residents and small businesses and stimulating local consumption are the starting point for economic recovery, Daejeon plans to expand spending within the city and strengthen a virtuous economic cycle centered on "OnDaejeon 2.0" — a program that develops the city's local currency into an economic platform connecting residents' consumption with neighborhood commerce and local businesses.
To that end, the budget allocates 60 billion won for OnDaejeon 2.0 issuance support, 34.9 billion won for ultra-low-interest loans for small business owners, 10.7 billion won for modernization of traditional markets and shopping districts and parking improvements, 2.9 billion won for small business rent support, 2.5 billion won for energy vouchers, and 2 billion won for the self-employed business advisory program.
To stabilize operations and sharpen the competitiveness of local businesses, the city also plans to support 9.9 billion won for small and medium-sized enterprise operating stabilization funds and startup loan interest subsidies, 1.8 billion won for foundational industry revitalization, and 4 billion won for an IPO and scale-up support program and the D-Unicorn Project.
Turning AI and science into industry and jobs — securing future growth engines
The city will pursue strategic investment to connect Daejeon's scientific and technological strengths to industry and employment, and to secure future growth engines centered on AI and advanced industries.
On the administrative side, the budget includes 900 million won for an intelligent work management platform (OnAI) and 200 million won for an inter-agency shared data management system, advancing data- and AI-driven administrative innovation.
For future industries, allocations include 7 billion won to build an open quantum fabrication facility at KAIST, 3 billion won for a KAIST innovative digital medical science institute, 7 billion won for a biotech startup center, 7.2 billion won for a KAIST public rental knowledge industry center, 6.5 billion won for a defense and space parts and materials 3D-printing joint manufacturing center, and 4.3 billion won for regional flagship industry development.
Through these investments, the city aims to translate Daejeon's research and development capabilities into tangible industrial and business growth, and to build the foundation for nurturing future industries and creating quality jobs.
Strengthening lifecycle welfare and care — supporting residents at every stage of life
In response to demographic shifts — including a low birth rate, an aging population and a rise in single-person households — the city will strengthen tailored welfare and care support for residents from infants to the elderly.
New programs include 12.9 billion won for a newborn welcome grant, 6.8 billion won for a basic child allowance, 16 billion won to improve teacher-to-child ratios, and 500 million won for a Daejeon-style career and college guidance program.
The budget also reflects 44.8 billion won for expanded free school meals, 54.3 billion won for a Daejeon-style child-rearing allowance, 673.8 billion won for basic pensions, 142.9 billion won for infant and toddler care fees, and 112.2 billion won for senior employment support.
Building Daejeon as a 'Youth Special City' where young people can learn, work and settle
The city will expand support for employment, housing, asset building and self-reliance to help young people plan their futures and put down roots in Daejeon.
Allocations include 18 billion won for a young-couple marriage incentive grant, 14.1 billion won for youth monthly rent support, 5.2 billion won for a future-doubling youth savings account program, 2.6 billion won for a youth internship support program, 2 billion won for self-reliance allowances for youth aging out of care, and 1.8 billion won for interest support on Daejeon-style youth housing lease deposits.
In addition, through participatory budgeting, the city will pursue 300 million won in real estate brokerage fee and moving cost support for homeless youth and 150 million won for small-scale home repair support for single-person youth households, further strengthening youth assistance.
Creating a healthy living environment and expanding cultural and sports infrastructure — a city to enjoy and stay in
The city will reinforce residents' health and medical safety nets and expand access to cultural activities and community sports. To build a regional essential and emergency medical system, the budget includes 3.8 billion won for equipment support at regional responsible medical institutions, 13.2 billion won for specialized support at regional national university hospitals, and 6.1 billion won to address locally led medical gaps. The budget also reflects 7 billion won for the establishment of Daejeon Medical Center and 2.5 billion won for shingles vaccinations for basic livelihood recipients aged 70 and older.
In the culture and sports sector, allocations include 24.1 billion won for operations and venue renovation for the 2027 Chungcheong Summer World University Games, 2 billion won for a southwestern comprehensive sports town, 4 billion won for a baseball-themed street, 2.8 billion won for an expansion of Daejeon Hanwha Life Ballpark, and 12.1 billion won for a convergence special-effects content cluster.
Expanding transportation and logistics networks for a convenient living environment for all
To improve transportation access and reduce the burden of public transit use, the budget allocates 271.1 billion won for Urban Railway Line 2 construction, 21.6 billion won for free transit support for senior citizens, 22.3 billion won for a transit-fee refund program (the Everyone's Card), 23.6 billion won for opening an eastern access road to the Daedeok Special Zone, and 30.6 billion won for a road between Jeongnim Middle School and Sajeong Bridge.
Through these investments, the city plans to continue providing unrestricted free transit support for senior citizens as currently offered, while expanding the city's internal road network and metropolitan transportation infrastructure to improve residents' mobility and transit accessibility.
Building a city safe from disasters and crime
To protect residents' lives and daily safety, the city will strengthen disaster response capabilities and expand investment in public safety, including crime prevention. The budget includes 7.9 billion won for a new Jungbu Fire Station, 8.4 billion won for a Daejeon National Safety Experience Center, 2.1 billion won for natural disaster risk zone improvement projects, 2 billion won for a comprehensive survey of high-risk large-fire facilities, and 1.4 billion won for a child safety guardian program.
To make efficient use of limited resources, Daejeon cut unnecessary and routine expenditures and drew up the budget after a comprehensive review of each project's progress, urgency and expected fiscal impact.
For large-scale ongoing projects in particular, the city carefully examined construction progress, implementation status and future investment plans to reflect appropriate funding levels, balancing smooth project execution with fiscal efficiency.
Im Jae-jin, head of Daejeon's planning and coordination office, said the city had reduced unnecessary spending and carefully reviewed the progress, status and future investment plans of existing large-scale projects before allocating funds. "We will actively channel secured resources into economic recovery efforts such as support for small business owners and local companies, and prioritize investment in areas that residents can feel directly — including Daejeon's future strategic industries and residents' safety and welfare," Im said.
"We will do our utmost to manage limited resources efficiently, protect residents' livelihoods and lay the groundwork for Daejeon's future growth," Im added.
kwonhl@heraldcorp.com
