Finance Ministry Proposes Abolishing 20.79% Local Tax Grant; Education Ministry Rejects

South Korea's Ministry of Economy and Finance has put forward a proposal to abolish the grant system that currently constitutes 20.79% of local tax revenue. This significant fiscal adjustment, if implemented, would fundamentally alter the financial resources available to local governments.

The proposed revision aims to eliminate this specific portion of revenue transfer, potentially impacting public services and local administration. The Ministry of Economy and Finance has presented this as a measure for fiscal reform or restructuring.

However, the Ministry of Education has firmly stated its inability to accept the proposal. This rejection highlights a significant disagreement between government bodies over fiscal policy and its implications for educational funding and administration. The conflict underscores the challenges in coordinating national fiscal strategies with the operational needs of key ministries.