Busan City establishes 361.2 billion won for the first supplementary budget of 2025 – Focused on stabilizing people's livelihood and recovering the local economy
Busan City sets the stabilization of the people's economy and the revitalization of the local economy as the most important goal, and has earmarked 361.2 billion won for the first supplementary budget (supplementary budget) of 2025. This amount represents a 2.2% increase compared to the original budget and is an effort to revitalize the local economy, which is struggling due to delayed recovery, stagnant consumer sentiment, and prolonged high interest rates.
In particular, Busan City will extend the support program that expands the cashback limit of Dongbaek Cash from 300,000 won to 500,000 won, and increases the accumulation rate from 5% to 7% until June. Through this, they aim to stimulate consumption in alley economies and traditional markets.
This supplementary budget will primarily invest 118.7 billion won in stabilizing people's livelihood and recovering the vitality of the local economy, and 59.4 billion won in projects aimed at realizing a warm and safe happy city for all. These measures will serve as a crucial foundation for the economic recovery of Busan City.
1. Stabilization of People's Livelihood and Recovery of Local Economy (118.7 billion won)
1.1 Expansion of Support for Small Businesses and Self-Employed and Stimulation of Domestic Consumption (85.9 billion won)
A new support program called the "Three Non (無) Hope Linking Card" for small businesses will be initiated. This program provides specialized operating funds of up to 5 million won to 40,000 individuals and exempts interest (for up to 6 months), annual fees, and guarantee fees. This support is an important measure to enhance the stable operation of small businesses.
Additionally, the special fund interest rate compensation for small businesses will be expanded, with an additional 232.5 billion won of support being provided. It is expected that small businesses will be able to secure financing more easily through this measure.
A total package support program for improving the management of small businesses will also be newly established. This program will include support for brand development, consulting, and financial expenses to assist in the management improvement of small businesses. Reinforcement of reemployment support for small business owners who have closed their businesses will also be emphasized. Job training allowance will be doubled, and a job transition promotion project will be implemented to provide new opportunities.
The cashback for Dongbaek Cash will also be expanded and extended. With a size of 1.4 trillion won, the cashback limit will increase from 300,000 won to 500,000 won, and the accumulation rate will rise from 5% to 7%. This benefit is expected to remain in effect until June.
Finally, a new consumption promotion project for traditional markets will be established, providing refunds for purchases made in traditional markets. In addition, a project to foster cultural tourism types of traditional markets will be promoted, along with efforts for marketing and festival support for regional tourism revitalization and expansion of tourism infrastructure. These various support policies are expected to further revitalize small businesses and traditional markets.
1.2 Strengthening the Competitiveness of Local Companies and Improving the Business Environment (32.8 billion won)
Support for operating funds for small and medium enterprises will be expanded. This support program will amount to 267.5 billion won and is aimed at helping companies operate stably.
Support for logistics costs for overseas export companies will also be expanded. This aims to alleviate the burden of maritime freight costs and enhance export competitiveness.
An ecosystem research and development (R&D) cluster will be established to innovate the coffee industry. By integrating advanced technologies, the development of the coffee industry will be promoted.
The World Smart City Expo will be held in 2025. This event is expected to improve the regional economic structure and actively support the growth of companies.
In Busan, a new Employment Success Full Package Support project will be established to support youth employment. This program aims to contribute to the recruitment of talents tailored to businesses and job creation.
Finally, regeneration projects for industrial complexes and the expansion of infrastructure will be promoted. By implementing the Busan national industrial complex regeneration project and installing public wastewater treatment facilities, the sustainability of the local industry will be enhanced.
2. A Warm and Safe City for All Citizens (59.4 billion won)
2.1 Creating a Happy Living Environment (29.4 billion won)
A representative living area for a 15-minute city needs to be established. This aims to develop essential infrastructure within the city and enhance policy services.
In addition, urban regeneration projects should be pursued to expand regionally tailored urban and residential environment improvement projects. This will enhance the quality of life for residents.
It is also important to strengthen support for vulnerable groups through the construction of comprehensive social welfare centers and disability welfare centers.
By enhancing support for traditional markets and small businesses, consumption promotion projects for alley economies should be developed.
Finally, to improve public transport and citizen convenience facilities, urban railway construction and the creation of parking lots around citizen parks are necessary.
2.2 Creating a Safe and Healthy City for Citizens (30.0 billion won)
Busan City is expanding infrastructure for disaster prevention. Key initiatives include the maintenance of the western breakwater and improvement of aging urban railway vehicles.
Efforts are also being made to enhance public facilities safety. Renovation work for stage facilities at the Busan Cultural Center's Grand Theater and renovation of aging facilities at welfare centers and sports centers are currently underway.
To create a clean water environment, diversifying water sources, strengthening river management, and promoting water quality improvement are essential.
Finally, Busan will actively support public transport services. They plan to invest 50 billion won in covering transport losses for the city bus semi-public operating system and additionally allocate 60.6 billion won for the financial support of the Busan Transportation Corporation’s urban railway.
Conclusion
Park Hyung-jun, the Mayor of Busan, emphasized, "We will focus the city's capabilities on revitalizing the people's economy with extraordinary resolve," stressing the importance of overcoming the current difficulties and creating a Busan where people wish to live again.
He requested the active cooperation of citizens and the city council, expressing that if this supplementary budget is executed promptly, positive effects such as enhanced support for small businesses and self-employed individuals, recovery of the local economy, and the creation of a safe urban environment are expected.
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