Seoul Mayor Park Won-soon gives a press briefing on the 2019 budget proposal of the Seoul Metropolitan Government on Nov. 1. (Photo: SMG)

The 2018 welfare budget of Seoul Metropolitan Government (SMG) will surpass the 10 trillion won milestone for the first time. The figure represents one-third of the SMG’s total budget for next year.

The metropolitan government plans to plunk down huge amounts of money into the childcare and housing sectors. Seoul Mayor Park Won-soon said his government will focus on stability in housing, citing young people’s reluctance to get married and tendency of giving up birth.

The SMG submitted to the Seoul City Council the 2019 budget proposal of 35.784 trillion won on Nov. 1. The 2019 budget proposal represents a 12.3 percent surge over the 2018 budget.

Mayor Park confirmed fiscal expansion during his third term. Efforts to reduce debts have been made so far, and from now, (the SMG) will utilize all possible financial resources with a top priority of “Filling people’s pockets” by issuing bonds worth 2.402 trillion won.

The 2019 budget for providing financial support to debt repayments is set at 87 billion won.
The portion of the welfare budget stands at 11.183 trillion won, one-third of the total budget.

The 2019 welfare budget is an about 30 percent surge over 8.773 trillion won in 2017 and a triple jump over 2011 when Mayor Park launched his first term. As a result, household burden will surge – jumping to 5.34 million in 2019 in debts per capita, up 84 percent from 2.9 million won in 2011.

The SMG will pour resources, to be made available through fiscal expansion, into the welfare. The metropolitan government will pour about 2.7 trillion won to expand services such as free education and care.

Free preschool education at privately-run childcare centers will be expanded to cover all areas of the capital. Apart from the central government’s child care support, the metropolitan government now shoulders 55 percent of parent’s burden for preschool child education, while remainder 45 percent is covered by each ward. But 12 wards have failed to afford the budget.

The SMG plans to raise its support to 70 percent of parent’s burden for preschool child education on a gradual basis before offering an overall free preschool child education.

In the 2019 budget proposal, the SMG announced a plan to invest 27.9 billion won in creating or expanding kindergartens and 70.9 billion won in expanding facilities to take care of primary school students.

The metropolitan government decided to pour 1.491 trillion won in expanding public rental apartments and 1.027 trillion won in the implementation of urban planning and renewal projects.

The SMG plans to supply a combined 48,000 rental units, including 1,700 apartments for youth rental, 19,200 rental apartments being built by the private sector, 2,310 units for redevelopment rental and 3,675 units for small-size rental.

The plan is part of the metropolitan government’s scheme to supply 240,000 rental units in the next five years.