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Gwangju City will focus on job creation with the largest-ever budget of 5.712 trillion won in 2020!

Name : adminDate : 2019-11-26 11:294
Gwangju City will focus on job creation with the largest-ever budget of 5.712 trillion won in 2020!

| Continuing the development of AI Hub City Gwangju by implementing the subway line 2
| The job budget has increased 14.3% from this year to 924.2 billion won… the largest increase to date
| Invests heavily in developing eleven different growth industries that will be responsible for the production of future food

Gwangju Metropolitan City submitted its 2020 budget proposal to the city council on 11th, setting aside 5.712 trillion won with including the increased budget of 12.4% (629 billion won) over the previous year.

This budget scale is the largest to date with 4.567 trillion won in general accounts and 1.145 trillion won in special accounts; these accounts are expected to be used as the financial backing for the revitalization of the local economy with expansionary budgeting tailored to the government's policy stance.

Local taxes and extra-taxed income will be increased by 185.8 billion won (9.9%) for next year. State subsidies and local tax grants will be increased from 329.3 billion won (12.6%) to 2.9356 trillion won.

If you look at the budget by sector, social welfare and health budgets accounted for the largest portion (39.8%), followed by public order and safety (23.9%), environment (19.4%), and transportation and logistics (25.1%) which were greatly expanded. On the other hand, general public administration (7.6%), education budget (11.3%), culture and tourism (7.6%), and economic budgets (5.9%) remain relatively low in comparison.

The budget for annual expenditure focuses on the five areas: ▲Affluent Gwangju, ▲Friendly Gwangju, ▲Dignity Gwangju, ▲ Safe and Comfortable Gwangju, ▲ AI Hub City Gwangju, all of which are intended for the increased availability of desirable employment, economic prosperity and the ensured safety of the public welfare.
□ Carry forward AI Hub City Gwangju
The Organizing of Gwangju’s Artificial intelligence (AI) business model will lead the fourth industrial revolution and 502 billion won will be invested into the project, including 426 billion won for the creation of the AI Hub City Gwangju.

- Building AI-centered integrated convergence complex 472
- Operation of innovative education to foster practical AI human resources 20
- Support for AI industry development
- Support for AI graduate school 2
- Support for building AI networks 3

□ Success of Gwangju type job model and realization of win-win city for labor and management

The Gwangju job project has been put back on track by the signing of an agreement on the establishment of an automobile factory and a technical agreement for the establishment of a mass production system for vehicles. In particular, it is expected that the Gwangju job market will become even more prosperous after establishing a joint venture for a fully-built automobile factory, which is regarded as an innovative model for labor-management, co-prosperity and social grand integration by providing 27.4 billion won in support of the creation of jobs in Gwangju next year.

Meanwhile, the budget for stable job creation, a key task for the city government, stands at a solid 924.2 billion won, which is a 14.3% increase over the 808.3 billion won this current year. This is the largest budget Gwangju has had for job creation thus far and it is projected that an estimated 100,000 jobs will be created in time for the seventh-term population election of Gwangju, by which the project will be able to gain further momentum.

- Construction of a support center for labor-management growth 98
- Vocational education customized for Gwangju type jobs 5
- Establishment of Industrial-Academic Convergence Area 20
- Construction of the Open Gymnasium of the Bitgreen Industrial Complex 40
- Establishment of Labor Human Rights Center 20
- Construction of Collaborative Labor-Management Win-win Model in Bitgreen Industrial Complex 1
- Construction of Common Office Daycare Center 2
- Support for the operation of the labor-management win-win program 2

□ Promotion of Eleven Future Industries Tasked with Providing Gwangju's Future Food Sources

83 billion won was set aside to promote Gwangju as a leading city in the fourth industrial revolution and foster eleven major industries that will be responsible for future food.
- Eco-friendly automobile industry 339
- Air home appliance and Air industry 37
- Optical fusion industry 25
- Energy and hydrogen industry 41
- Medical and healthcare industries 56
- Artificial intelligence and drone industry 10
- 5G-based ICT industry 16
- Cultural content industry 219
- Tourism 28
- Kimchi and food industry 13

□ Regularization of the Construction for Subway Line 2

Construction of the subway line 2, which broke ground on September 5, will be carried out in earnest being granted with 101.7 billion won of the total 2.176 trillion won projected project budget. As the first stage () is currently under construction, the second stage is estimated to be completed by 2020, and the remaining construction of the line will begin in 2021. The first stage (Rail yard ~ City Hall ~ World Cup Stadium ~ Baegun Square ~ Chosun University ~ Gwangju Station) is currently under construction, the remaining stages will begin in 2020 and 2021 respectively after the working design of first stage is completed by 2020.

□ New remarkable projects in 2020

Gwangju City has set aside 3.2 billion won for the Gwangju Youth Dream Benefit project aimed at promoting positive self-esteem and self-reliance by providing funding for young people who are struggling to enter society, which has been reflected in the growth of youth unemployment. In addition, the city is looking to fund 900 million won to the operation of a laundry shop for Hanam industrial complex workers' working clothes to promote the health of small business workers and their families, and to support the improvement of the welfare state for small businesses.

Moreover, 10.2 billion won was allocated to make Gwangju a "child-friendly city" by establishing a quality food culture suitable for the growth of children in kindergartens and daycare centers, ultimately relieving the burden on parents to improve universal education welfare.

Furthermore, Gwangju will fund 1.3 billion won in the establishment of the Korea Swimming Promotion Center and the hosting of a national swimming competition as a legacy project of 2019 Gwangju FINA World Championships, which is considered to be Gwangju’s most successful international promotional event to date.

□ Secured the financial integrity by reducing debt and restructuring annual expenditure

Financial integrity is expected to increase further in the future as the local debt for next year is expected to be 829.2 billion won with the expected debt ratio of 13.3%, which is 125.8 billion won less than 955 billion won (21.5% of the debt ratio) in 2016.

This is the result of the minimization of unnecessary expenses and current expenses as well as the Gwangju City's zero-standard review, which reduces the budgets in all areas including culture, welfare and economy by investigating pork-barrel, waste and redundancy, adjusting a total of 5.6 billion won from 111 different projects, and injecting the reduced budget into the city's core investment areas for job creation, recovery of the Gwangju spirit, and civil safety.

Meanwhile, a total of 620 projects for citizen participation this upcoming year received a total budget amounting to 118.4 billion won. The 42 of those projects and their respective budgets of 8.7 billion won were selected through consultation and deliberation by the Civil Participation Budget Committee. A total of 37 projects were recognized and granted 7.9 billion won in next year's budget after disregarding cases in which projects had overlapping or similar indistinguishable goals.