Chungbuk governor-elect's transition team to establish financial normalization task force amid severe deficit

Chungbuk Province's incoming administration is set to establish a financial normalization task force to tackle what it describes as a "severe" fiscal situation. The transition committee for Governor-elect Shin Yong-ho has analyzed the financial operations of the outgoing Minseon 8 administration and deemed them critically problematic.

Jeong Gyu-yeong, the overall coordinator for the Chungbuk Great Transformation Transition Committee, stated, "Chungbuk Province's finances are in a severe state. We have to give up on competitive projects from the central government because we lack matching funds." He added that they are examining whether the previous administration under Governor Kim Young-hwan excessively issued local bonds, possibly prioritizing signature projects and campaign pledges.

Civic groups have also criticized the previous administration's fiscal management. Data released by the Chungbuk Citizens' Coalition for Participatory Government shows that the province issued 151.3 billion won in local bonds in 2024 and 116.4 billion won in 2025. An additional 168.3 billion won in bonds is planned for November to fund projects like sewer line improvements and the expansion of the public health and environment research institute.

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Chungbuk Province's finances are in a severe state. We have to give up on competitive projects from the central government because we lack matching funds.

Lee Kang-il, the transition committee chairman, expressed frustration, saying, "I thought there would be usable funds in the provincial government's coffers for the governor-elect, but there is almost no money to spend. Furthermore, despite issuing many local bonds and increasing debt, there is no roadmap for repayment, which is frustrating." He indicated that while campaign promises are important, they might need to be significantly adjusted or deprioritized.

However, a provincial official, who requested anonymity, offered a different perspective. They attributed the heavy bond issuance in the Minseon 8 period to sluggish economic conditions reducing tax revenue and central government grants. The official noted that the debt-to-budget ratio is around 13%, which is not excessively high compared to other provincial governments. They expressed optimism about future revenue growth from the semiconductor industry boom and increased grants, believing the province has the capacity to repay its debts and that the burden is manageable.

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I thought there would be usable funds in the provincial government's coffers for the governor-elect, but there is almost no money to spend. Furthermore, despite issuing many local bonds and increasing debt, there is no roadmap for repayment, which is frustrating.