Icheon Opens the Era of a 2 Trillion Won Budget as SK Hynix Lifts Local Finances

Icheon has entered what the city calls the era of the 2 trillion won budget, despite having a population of about 230,000. The city submitted a 2026 third supplementary budget worth 2.013 trillion won, adding 280.4 billion won to its original plan.

That budget places Icheon well above the typical level for South Korean local governments with populations between 200,000 and 250,000. Their average budgets generally fall in the mid-1 trillion won range, making Icheon's fiscal expansion stand out among similarly sized municipalities.

The city's strongest source of growth is its local tax base. Icheon also passed 1 trillion won in local tax revenue this year. Because the figure comes from the city's own income, including local taxes and non-tax revenue, rather than grants or subsidies, officials view it as evidence of stronger fiscal independence and autonomy.

“

This supplementary budget goes beyond simply expanding its size. It provides the financial foundation for realizing Icheon as a city where the future gathers.

Icheon plans to use the additional revenue to build an integrated fiscal stabilization fund. The fund will support preparations for major infrastructure projects, including future semiconductor and advanced strategic industry complexes and the duplication of water transmission pipelines.

The city's industrial base and labor market underpin the expansion. In the first half of this year, 141,000 employed people lived in Icheon, while 183,000 people worked at businesses within the city. That means Icheon draws 42,000 workers from nearby areas and functions as a regional employment hub. SK Hynix and other advanced parts and materials manufacturers have provided a foundation, while employment also increased in services, transport, communications and finance. Mayor Seong Su-seok said the supplementary budget would support efforts to make Icheon a city where the future gathers, while improving residents' quality of life and investing in future growth.

“

We will continue improving citizens' quality of life and investing in future growth engines based on sound fiscal health.