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Jeonju City Initiates Fiscal Overhaul Amid Nearly 1 Trillion Won Debt Burden
yonhap_finance · 2026-09-04
Jeonju City is tightening its fiscal policy by restricting new bond issuance and reviewing large-scale projects to address a nearly 1 trillion won debt crisis.
What Happened
Fiscal Crisis Assessment: Jeonju City is facing a significant financial challenge, with its actual fiscal burden reaching approximately 982.5 billion won. While official debt stands at 698 billion won, the inclusion of contingent liabilities and unreturned funds brings the total burden close to the 1 trillion won mark.
Debt Reduction Strategy: The city plans to implement strict controls on new municipal bond issuances to lower its debt-to-revenue ratio to below 20% by 2030. This move is designed to prevent the city from hitting the 25% threshold that would trigger a 'fiscal caution' designation from the central government.
Project Re-evaluation: A comprehensive review of 104 ongoing infrastructure projects is underway to ensure fiscal sustainability. Every project, including those tied to campaign promises, will be subjected to rigorous cost-benefit analysis to determine whether they should continue, be paused, or be canceled.
Future Cooperation Models: Mayor Cho Ji-hoon has signaled a shift in strategy regarding the potential merger with Wanju, moving away from unilateral administrative integration. Instead, the city is exploring the 'Special Local Government' model to collaborate on shared goals like financial hub development and AI infrastructure.