Democrats drew their sword first...Direct hit on Choo Mi-ae at Ministry of Interior and Safety National Audit

Even before Gyeonggi Province's National Audit began, a Democratic Party National Assembly member took aim at Governor Choo Mi-ae's 'financial emergency' declaration.

Rep. Chae Hyun-il (Democratic Party, Yeongdeungpo-gap, Seoul) questioned during the National Assembly's Interior and Safety Committee National Audit on the 6th whether Gyeonggi Province's declared 'financial emergency' met the Ministry of Interior and Safety's financial crisis standards. Minister Yoon answered, "According to (the ministry's standards), it is neither a financial crisis nor a caution situation."

A member of the same party as Governor Choo questioned the grounds for the emergency declaration, and the minister in charge of local finance provided an answer stating it did not meet official crisis standards.

According to the Ministry of Interior and Safety response presented by Rep. Chae, a debt-to-budget ratio exceeding 25% is classified as 'caution,' and exceeding 40% is classified as 'crisis.' Gyeonggi Province's debt ratio for the second quarter this year was 13.71%, falling short of the caution threshold on that indicator.

Regarding the background of Gyeonggi Province's emergency declaration, Minister Yoon explained, "It seems the Gyeonggi governor may be citing that the current debt amount has nearly reached the local bond issuance limit, so no more debt can be increased." He added, "In such cases, the province can request that the Ministry of Interior and Safety increase the local bond limit."

This questioning demonstrates that the controversy surrounding Gyeonggi Province's financial emergency declaration is spreading from the Provincial Assembly to the National Assembly. With the financial issue being raised first at a central government ministry audit rather than at the province's direct audit, follow-up questioning regarding the grounds and subsequent response to the declaration is expected to continue during Gyeonggi Province's National Audit.

The key issue is the specific reason Gyeonggi Province needed to declare an emergency without reaching the government's official crisis standards. The province's anticipated tax revenue shortfall, actual available resources, and fiscal capacity for local bond issuance are expected to be critical data to verify the basis for the judgment.

The appropriateness of budget restructuring pursued as a response to financial difficulties is also likely to be addressed together. Key anticipated questions include what the reduction criteria were by project, whether essential business budgets were prioritized first, and what measures were prepared to address gaps in welfare support.

However, the answer that, according to Interior and Safety standards, it is neither a financial crisis nor a caution situation does not mean Gyeonggi Province will have no difficulties in budget operations. The designation of a statutory financial crisis and the province's own judgment on emergency response need to be examined separately. Gyeonggi Province must explain, apart from official crisis standards, why fiscal restraint measures were necessary using objective figures and data.

The Choo Mi-ae administration, facing two National Audits by the National Assembly's Interior and Safety Committee and the Land, Infrastructure and Transport Committee, first encountered questioning from ruling party members before the province's direct audit. How persuasively the administration explains the grounds for the financial emergency declaration and budget priorities is expected to be a major task of the first National Audit.