Published Invest3 min read
Uijeongbu's budget tripled and its own revenue barely moved. That is the whole story.
The Gyeonggi city projects a 408.1 billion won gap over four years and is reviewing spending from scratch. The arithmetic says the review cannot close it, and the city's own plan quietly admits that.
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What happened
- Uijeongbu, in Gyeonggi Province, launched an overhaul of its budget structure on Aug. 13, warning of a projected 408.1 billion won ($296 million) revenue shortfall over the next four years, involving reviewing spending from scratch, boosting own revenue, and pressing the central government and Gyeonggi Province on fund allocation.
- Mayor Kim Won-ki announced the reform, dubbed the "Aug. 13 Uijeongbu Fiscal Innovation," at a news conference at City Hall on the 13th; the plan rests on three principles: restructuring finances, strengthening the city's own revenue base, and improving how funds are distributed.
- Uijeongbu's total budget more than tripled from 553.8 billion won in 2010 to 1.7 trillion won in 2026, while the city's own revenue rose just 15% over the same period, from 270 billion won to 310 billion won.
- Local tax revenue rose 12 billion won in 2025 from a year earlier, but the city's share of subsidized programs climbed 18.4 billion won.
- The city said subsidized programs account for about 70% of its total budget, while social welfare spending exceeds 60%.
Compiled by The InvestorSomething wrong?How this is made
Why it matters
Uijeongbu's city government said on Aug. 13 it would rebuild its budget structure rather than simply cut, citing a projected 408.1 billion won (about $296 million) revenue shortfall over the next four years [1]. The number that explains the shortfall is not the shortfall: the total budget more than tripled from 553.8 billion won in 2010 to 1.7 trillion won in 2026, while the city's own revenue rose 15%, from 270 billion to 310 billion won [5].
Put those together and own-source revenue covered roughly 49% of spending in 2010 and covers roughly 18% now [1]. Of the 1,146 billion won of budget growth since 2010, own revenue supplied about 40 billion won, or one won in every 29 [2]. Everything else came from someone else, on someone else's terms.
Those terms are the second problem. Local tax revenue rose 12 billion won in 2025 from a year earlier, while the city's matching share of subsidized programs rose 18.4 billion won [6] - a net loss of 6.4 billion won on a year of tax growth [3]. The city says subsidized programs account for about 70% of the total budget and social welfare spending exceeds 60% [7]. According to the city, local tax paid per resident is 515,000 won, the lowest of any city or county nationwide [8], and local shared tax per resident is about 350,000 won against more than 1 million won in comparably sized cities outside the greater Seoul area [9], a gap of over 650,000 won a head [8]. Shared tax and adjustment grants fell 96.5 billion won, from 389.4 billion won in 2022 to 292.9 billion won in 2023, a 24.8% drop [10][9].
Ahead of that sit contributions to the Dobongsan-Okjeong regional railway and GTX, a light rail overhaul and modernization of a resource recovery facility, which the city says carry mandatory statutory expenses plus labor and facility maintenance [11]. Annual gaps are put at 55.7 billion won in 2027, 132.5 billion in 2028, 109.5 billion in 2029 and 110.4 billion in 2030 [12].
Now the review. A 17-member citizen-led task force launched Aug. 10 [13] will spend August to October examining welfare and health programs, affiliated agency operating costs, events and festivals, private contracts and subsidies to private groups for overlap and poor results [14], with findings landing in the 2027 main budget [15]. The city has ring-fenced the welfare safety net, public safety and basic administrative services [16]. If roughly 30% of the budget is not subsidy-driven, that is about 510 billion won of locally controlled spending, and the average annual gap of 102 billion won is about 20% of it [5][7]. Cuts of that depth, inside a protected perimeter, are not on offer. The review also arrives for 2027, the year the gap is smallest at 55.7 billion won, before it jumps to 132.5 billion in 2028 [11].
The load-bearing items are elsewhere: raising local tax and non-tax income, attracting corporate investment, and converting returned U.S. military base land into industry and jobs [17]; and asking the central government and Gyeonggi Province to adjust matching ratios, change how local shared tax is calculated, and support the base land [18]. Mayor Kim Won-ki framed the exercise as diagnosis rather than blame [19]. Diagnosis is accurate. The cure is mostly in other people's budgets.
What to watch: the task force's October findings and how much of them survive into the 2027 main budget; whether the province or the central government moves on matching ratios or shared tax criteria, the only levers large enough to matter; and any concrete tenant or investment commitment on the returned base land.
Claim ledger
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- [1]
Uijeongbu, in Gyeonggi Province, launched an overhaul of its budget structure on Aug. 13, warning of a projected 408.1 billion won ($296 million) revenue shortfall over the next four years, involving reviewing spending from scratch, boosting own revenue, and pressing the central government and Gyeonggi Province on fund allocation.
- [2]
Mayor Kim Won-ki announced the reform, dubbed the "Aug. 13 Uijeongbu Fiscal Innovation," at a news conference at City Hall on the 13th; the plan rests on three principles: restructuring finances, strengthening the city's own revenue base, and improving how funds are distributed.
- [5]
Uijeongbu's total budget more than tripled from 553.8 billion won in 2010 to 1.7 trillion won in 2026, while the city's own revenue rose just 15% over the same period, from 270 billion won to 310 billion won.
- [6]
Local tax revenue rose 12 billion won in 2025 from a year earlier, but the city's share of subsidized programs climbed 18.4 billion won.
- [7]
The city said subsidized programs account for about 70% of its total budget, while social welfare spending exceeds 60%.
- [8]
Local tax paid per resident in Uijeongbu stands at 515,000 won, the lowest among all cities and counties nationwide.
Sources & coverage · 1 publisher
The reporting this story was synthesized from, earliest first. Every link goes to the original.
- en.sedaily.comAug 13Uijeongbu Launches Fiscal Overhaul Facing $296 Million Shortfall
Cited in this coverage: en.sedaily.com
Cited in this coverage: City of Uijeongbu via en.sedaily.com
Cited in this coverage: Mayor Kim Won-ki, via en.sedaily.com



