Daejeon Cancels Major Projects Amid Financial Crisis

Daejeon City has announced the cancellation of eight major projects, including the Bomunsan Observatory Tower and Nara Sarang Park, as part of a drastic financial innovation plan. Mayor Huh Tae-jung stated on March 30 that the city's finances are in crisis due to declining tax revenues and the pursuit of large-scale projects. The city's local debt has increased by 580 billion won in three years, and it anticipates a budget deficit of 548.2 billion won this year, with an annual shortfall of approximately 700 billion won expected from next year.

The "financial innovation plan" involves re-evaluating 71 projects costing over 10 billion won. These projects are categorized into termination, scale adjustment, timing adjustment, or long-term review. Eight projects, totaling 525.9 billion won, will be terminated. These include the Nara Sarang Park at the Daejeon National Cemetery, the Bomunsan Observatory Tower, the Bomunsan Forest Stream Nature Resort, and the underground parking lot at Dunsan Grand Park.

The cancellation of the Bomunsan Observatory Tower project effectively halts the "Bomulsan Project," which included a cable car. This project had been controversial, with former Mayor Lee Jang-woo insisting on proceeding with city funds after private investment failed. The city cited low urgency, uncertain public benefit, and concerns about haphazard development as reasons for the cancellations.

Other measures include reducing the newlywed marriage incentive from 5 million won to 3 million won per household and capping the unlimited free public transport for seniors at 30,000 won per month starting next year. Twenty-nine projects, such as the "Second Culture and Arts Complex" and the Norubeol Provincial Garden, will be reviewed long-term. The construction of the No. 2 City Tram and the first phase of the Chungcheong Major Railway will have their timelines adjusted. The city expects to save 495.9 billion won through these redesigns and plans to cut executive-level entertainment expenses by over 20% annually, while also reducing overtime pay through improved work practices.

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We will boldly eliminate unnecessary projects as the city's finances are facing a crisis due to continuous tax revenue reduction and the pursuit of large-scale projects.