"No Honeymoon Period"…Choo Mi-ae's First Gyeonggi Province State Inspection Looms Large
Governor Choo Mi-ae of Gyeonggi Province is facing her first state inspection audit 100 days after taking office. Without the typical "honeymoon period" usually afforded to newly appointed local government leaders, she will be subjected to verification on various pending issues that have emerged since her inauguration, including a declaration of financial crisis, cuts to livelihood budgets, and controversy over an official residence.
According to the National Assembly and Gyeonggi Province on the 12th, the National Assembly's Committee on Administration and Safety will conduct a state inspection audit on the province on the 13th. The Committee on Land, Infrastructure and Transport will also conduct an inspection on the 19th to check on Gyeonggi Province's major policies and project implementation status. This is the first state inspection audit Governor Choo has received since taking office in July.
The biggest issue is the declaration of financial emergency and the large-scale expenditure restructuring pursued based on it.
Governor Choo officially declared a financial emergency situation on August 5 and initiated austerity budgeting. Subsequently, she submitted a supplementary budget that reflected a 300 billion won shortfall in local tax revenue and reduced spending in 1,355 projects by 546.5 billion won.
However, the overall size of the supplementary budget was increased by 562.1 billion won compared to the existing budget, amounting to 42.242 trillion won, fueling controversy. Despite declaring a financial emergency and embarking on large-scale expenditure restructuring, the overall budget was ultimately increased.
The province explained that this reflected increases in national treasury subsidies and non-tax revenue, and that existing projects were reduced to redistribute funds to essential livelihood projects. However, disputes continued over the rationale for the financial emergency declaration, the inevitability of individual project cuts, and the appropriateness of fund allocation.
Moreover, it was confirmed that the province's financial situation does not fall within the statutory financial crisis stage.
At the National Assembly's Administration and Safety Committee state inspection of the Ministry of the Interior and Safety held on the 6th, when Democratic Party member Chae Hyun-il (Seoul Yeongdeungpo Gap) questioned the province's financial situation, Interior Minister Yoon Ho-jung answered that it is "neither a financial crisis nor a warning situation."
Minister Yoon estimated that the province declared a financial emergency based on exhausting local bond issuance limits, while also explaining that it was possible to request an increase in issuance limits.
Of course, the fact that it does not fall within the statutory financial crisis stage does not mean there is no revenue decline or difficulty in financial management. However, since differences have been confirmed between the government's official financial risk standards and the province's financial emergency declaration, the state inspection audit is expected to focus on the inevitability of large-scale budget cuts and whether alternative funding methods have been sufficiently reviewed.
Backlash against the fiscal restructuring has already led to collective action by residents.
On the 6th, a rally was held in front of the provincial government office with approximately 2,000 participants, including directors and childcare staff from childcare centers affiliated with the Gyeonggi Childcare Center Association, calling for normalization of childcare budgets and prompt handling of the supplementary budget.
The association is demanding budget restoration, citing that 2.7 billion won needed to maintain childcare center operating expenses and childcare worker benefit improvement at existing levels for the remainder of this year was not reflected in the supplementary budget.
In particular, they raised the possibility of closing all childcare centers starting in November if the budget is not secured, noting that support rates could be lowered. Resistance is spreading, with over 60,000 residents supporting related petitions raised by childcare workers.
Traditional market merchants and small business owners are also demanding budget restoration for the "Gyeonggi Revitalization Big Sale," and Democratic Party members of the provincial assembly have urged livelihood and welfare budget restoration. The conflict surrounding fiscal restructuring is expanding beyond the provincial assembly to childcare facilities and local business areas.
The controversy over suspension of postpartum care support also sparked resident backlash.
The province had planned to end postpartum care support, which provided 500,000 won per newborn, at the end of September, but reversed course as opposition grew. Criticism that support for families preparing for childbirth could be abruptly discontinued led to resident petitions.
Over 30,000 residents supported a separate petition calling for Governor Choo's resignation. While the province explained the necessity of livelihood essential projects' funding shortage and fiscal restructuring, controversy continued over whether resident opinions were sufficiently gathered during the budget adjustment process.
The controversy over the governor's official residence, which emerged alongside the financial emergency declaration, escalated to a police report.
The province contracted an apartment in Suwon's Gwanggyo New Town in June with a jeonse deposit guarantee of 1.22 billion won and purchased an official vehicle worth 77.65 million won.
In response, the civic group Citizen Action to Uphold Judicial Justice reported Governor Choo to the Gyeonggi Southern Police Agency on the 15th of last month on suspicion of abuse of authority and breach of trust.
The province maintains that the official residence and official vehicle contracts were concluded prior to the financial emergency declaration and complied with relevant regulations. However, given that Governor Choo has emphasized financial difficulties since the transition committee period, questions remain about the appropriateness of the budget allocated to the official residence and vehicle.
Internal political conflict within the ruling party is also a burden for Governor Choo.
Governor Choo has recently expressed disagreement with the presidential office and ruling party leadership on issues including the appointment of the serious crime investigation bureau chief and prosecution reform. She has also engaged in public tension with Democratic Party leader Kim Min-seok, drawing criticism not only from the opposition but also from within the ruling party.
Accordingly, the state inspection audit's focus includes not only attacks by opposition lawmakers but also what stance ruling party members will take on Governor Choo's fiscal management and provincial administration issues.
At the National Assembly's Committee on Land, Infrastructure and Transport state inspection audit on the 19th, implementation status of major transportation and development projects, including third-phase new city area-wide transportation measures and the Seoul Metropolitan Area Express (GTX), are expected to come under review. The key question is how Gyeonggi Province, which has declared insufficient financial capacity, will secure the implementation schedule and funding for existing projects.
The Gyeonggi International Airport project is also likely to emerge as an issue.
The province previously selected three preliminary candidate sites—the Hwasung Reservoir reclaimed area in Hwaseong City, and Seotam-myeon in Pyeongtaek City and Moga-myeon in Icheon City—and pursued a research project to review the final candidate site. However, the project was suspended after the fairness of the bidding process for the consulting firm was questioned during last year's state inspection audit.
Subsequently, the province's audit committee concluded in July that there were no legal violations in the project's bidding and contracting process. However, the suspended project has not been resumed to date.
The Gyeonggi International Airport's inclusion in the Ministry of Land, Infrastructure and Transport's Seventh Comprehensive Airport Development Plan is considered a key variable for future project implementation. The verification targets include how the suspension of the province's research project will impact the project timeline in a situation requiring candidate site selection and coordination with the central government.
Since the Gyeonggi International Airport is linked to the relocation of Suwon Military Airport, interest also focuses on what follow-up measures Gyeonggi Province has prepared for candidate site selection and government coordination.
Governor Choo, a veteran politician who served as a six-term National Assembly member and justice minister, is receiving a state inspection audit as a metropolitan government leader for the first time. She has transitioned from a position of questioning the government and public institutions in the National Assembly to a position as the person responsible for provincial administration answering questions.
At her first state inspection audit coming 100 days into office, attention is focused on what explanation Governor Choo will provide regarding successive controversies: the rationale for the financial emergency declaration, the inevitability of large-scale expenditure restructuring, backlash from cuts to livelihood budgets, and delays in implementing major policy projects.
Hong Eun-gwang, provincial spokesperson, stated, "We expect the Administration and Safety Committee audit to focus on local finance issues, and the Land, Infrastructure and Transport Committee to focus on transportation and housing issues," adding, "We hope this becomes a forum where ruling party members discuss policy alternatives together."
He continued, "We are preparing answers to various points raised," and added, "If National Assembly members provide sufficient opportunity for questions and answers, we can work together to find solutions to the problems facing Gyeonggi Province."