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Gangdong-gu is evaluated as having the best financial status among all local governments in Korea $-It received the highest final score in the financial analysis and evaluation conducted on all 243 local governments in Korea -This secures KRW 100 million for the district in the form of special grants for its contribution to the development of financial analysis
Gangdong-gu (Mayor Lee Jung-hun) was selected as the local government with the best results from 'the 2019 Financial Analysis and Evaluation of Local Governments' conducted on all 243 local governments in Korea, securing KRW 100 million worth of special grants given as incentive funding.
The financial analysis of local governments is a monitoring system designed to analyze and evaluate local governments' financial status and performances in a comprehensive manner. The outcome of financial operation is analyzed using 14 indicators divided in 3 categories including integrity, efficiency, and responsibility. It is being conducted for the purpose of improving the accountability and transparency of local governments' activities by disclosing the results of the analysis and evaluation.
Among the 14 indicators, Gangdong-gu received particularly high scores in combined financial balance ratio, management debt ratio, and independent income ratio, and so on. Gangdong-gu was evaluated to have the highest independent income ratio (21.06%), and percentage change in independent income (185.97%) in the country.
This means that the Ministry of Interior and Safety recognized the fact that Gangdong-gu generated an increased amount of temporary nontax revenue in comparison to the previous year through the large-sale regeneration and redevelopment projects, and that the district channeled the revenue to create the construction funds for public and government facilities, effectively reinvesting the funds in areas that are closely related to the lives of local residents such as securing social overhead capital (SOC) and improvement projects.
Lee Jung-hun, the Mayor of Gangdong-gu, said, "The population in Gangdong-gu is estimated to increase to 550 thousand in five years from 430 thousand. In preparation for this, we are currently focusing on establishing a system that facilitates a virtuous cycle of growth and distribution. We will continue to focus on allocating the budget on the areas that are closely related to the daily lives of our citizens, and make earnest efforts to build an equal, safe, and pleasant city where happiness is shared by all."
Meanwhile, the excellent cases of financial analysis and evaluation can be found in 'Local Finance 365', the integrated open platform for financial information of local governments established by the Ministry of Interior and Safety.