Gyeonggi local government’s financial emergency due to Samsung Electronics semiconductor operating profit deficit: Economy: The Christian Daily

As Samsung Electronics’ operating profit turned into a deficit due to the recession in the semiconductor industry, the financial independence of local governments in Gyeonggi Province, where Samsung’s semiconductor production lines are located, fell all at once.

In Suwon City, Hwaseong City, and Pyeongtaek City, corporate local income tax from Samsung Electronics decreased from 60 billion won to up to 260.1 billion won compared to last year, and their financial independence fell by up to 10 percentage points.

In the case of Pyeongtaek City, financial independence decreased by 2.23% points from 45.83% to 43.6%. This is because corporate local income tax amounting to 100 billion won has been paid over the past five years, but not a penny has been received this year.

Hwaseong City’s financial independence also fell by 9.88 percentage points from 61.08% to 50.2%, and corporate local income tax, which was 260.1 billion won last year, decreased significantly.

Suwon City’s financial independence also fell by 6.14% points from 45.98% to 39.84%.

On the other hand, Yongin City’s financial independence increased by 1.82 percentage points from 47.91% to 49.73%, but it is analyzed that the impact was small due to low dependence on Samsung Electronics.

Some local government officials expressed concern, saying, “It may be bearable in the short term, but if difficulties continue next year, it is inevitable that major policy projects will be affected.”

Another official pointed out, “It’s paradoxical, but we need to reduce our dependence on Samsung Electronics and create an environment where various companies can operate.”

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