The Local Finance Association was founded in 1964 and has been promoting the stability and efficiency of local finances, starting with the introduction of the building facility disaster restoration deduction program and expanding to various damage and injury deduction programs. The association ensures the safety of local governments and citizens through disaster recovery deductions, compensation for damages, and injury deductions, and continues to strengthen its deduction business, stabilize asset management, advance local finance and accounting, and lead the promotion of the outdoor advertising industry. The Association is the only public interest corporation in Korea that was established to contribute to the sound financial management of local governments and the development of local finance, and has been carrying out a variety of concrete efforts to revitalize local areas and overcome the crisis of local extinction. It is celebrating its 60th anniversary this year and continues to strive to be a world-class municipal finance professional organization.

 

The next 100 years of the Local Finance Association

60th anniversary celebration and seminar

The Local Finance Association (President Lee In-jae) celebrated its 60th anniversary with a seminar to discuss the way forward as it prepares for the next 100 years of sustainable growth.  The event, which proclaimed a new slogan, “60 years together, 100 years to go global,” was held on September 10 at the FKI Tower Conference Center in Yeouido. The event was attended by not only government officials including Han Soon-ki, Director of the Local Finance and Economic Affairs Bureau of the Ministry of the Interior and Safety, Kim Jang-hoe, Chairman of the Korea Local Government Officials Mutual Aid Association, and other heads of affiliated organizations of the Ministry of the Interior and Safety, and heads of academic societies in the local finance and outdoor advertising fields, but also figures from the German KSA (Local Government Joint Disaster Compensation Agency) and Japanese local finance academia. They not only congratulated the development of the association but also discussed its future vision. Association president Lee In-jae said in his opening speech “We are here today to celebrate the historic moment of our 60th anniversary, and as we reflect on the path we have taken in more than half a century, I am truly excited and honored to share with you our accomplishments and our vision for the future. Since our inception in 1964, we have been working with a sense of mission to advance local finance amidst numerous challenges and changes over the past 60 years. In addition, with the launch of the Center for Local Government Accounting and Statistics in 2016, we have established ourselves as a specialized institution for local government accounting and local universities, and in 2021, we opened the Local Investment Analysis Center as a specialized institution for preliminary feasibility studies of financial investments. As the foundation of municipal finance for the past 60 years, we will continue to work in close partnership with local governments through innovation and collaboration to drive both quantitative and qualitative growth in municipal finance to build a better future.”

 

International guests attended 

Video congratulations from the Minister of the Interior and Safety, Mayor of Busan, and other guests

At this event, video congratulatory messages were sent by key figures in Korea, including Minister of the Interior and Safety Lee Sang-min, Chairman of the National Assembly’s Public Administration and Security Committee Shin Jeong-hoon, Assemblywoman Cho Eun-hee, Chairman of the Korean Association of Mayors and County Mayors Park Hyung-joon, and Chairman of the Korean Association of Mayors and County Mayors Cho Jae-gu. In addition, Chairman of the Board Markus Bauer and CEO Arndt Steinbach of KSA Germany attended in person, further enhancing the international status of the Local Finance Association. Lee Sang-min said “The association has established itself as a partner for local governments, helping them in difficult times by raising funds together with local governments and compensating frontline officials and citizens for damages, such as the work compensation deduction project and the citizen safety deduction project. Recently, the association has been actively contributing to national policy projects by operating the Local Accounting Control Center, which can effectively deal with regional coexistence and the disappearance of localities, thus contributing greatly to the safety and sustainable development of local finances.” Chairman of the National Assembly’s Public Administration and Security Committee Shin Jeong-hoon said “This year marks the 60th anniversary of the Association’s founding. In the past 60 years, the association has contributed to the development of local governments and the stability of local finances, and has established a system of cooperation with local governments across the country. I hope that in the next 100 years, the association will be able to overcome the crisis of local disappearance, strengthen local finances, and go global.” Park Hyung-joon, Mayor of Busan, said Currently, Korea is facing the crisis of regional extinction due to the declining birthrate and aging population, which is becoming a major problem that will cause a national crisis beyond the region. Now, there is no national development without regional development, and we must immediately get down to the business of resolving the imbalance between metropolitan and non-metropolitan areas and strengthening decentralization. I am deeply grateful to the Association for its 60 years of contributions and hard work in local government finance, and I hope that it will continue to play a greater role in the development of local finance and the balanced development of Korea with its wealth of experience and expertise.” 

 

Recognizing contributors to municipal finance and association development

Congratulatory performances

At the commemorative event, the Ministry of the Interior and Safety and the association honored the meritorious individuals who have contributed to the development of local finance and the association by awarding them with the Meritorious Person Citation. In particular, in June 2022, the Association opened the ‘Regional Revitalization Support Center’ to entrust and manage the Local Revitalization Response Fund as part of its concrete efforts to revitalize local areas and overcome the crisis of local decline in response to the challenges of local decline. The Regional Revitalization Support Center has laid the foundation for more efficient and responsible implementation of the newly established Local Government Disappearance Response Fund worth 10 trillion won over 10 years. In addition, in February 2022, ‘LOMAC’ was newly established in accordance with the designation by the Ministry of the Interior and Safety as a ‘feasibility study specialist agency’ for new financial investment projects worth 50 billion won or more for local governments. The Association has been contributing to the development of the local community by operating various social contribution activities to take the lead in social responsibility, and has endeavored to establish a social contribution system to lead the sharing of the community in accordance with the philosophy of mutual aid. The event was marked by a commemorative performance with the theme of ‘60 years together, 100 years to go global’, and soprano Kang Hye-jung and tenor Ha Man-taek deeply moved the attendees with their beautiful melodies. 

 

Seminar discusses the way forward for associations

“We will play a pivotal role in local fiscal stability and development”

This event was accompanied by a seminar to discuss the path forward for the association. A keynote speech by Professor Emeritus Yu Hwa of Ibaraki National University, Japan, and a roundtable discussion were held. Professor Yu Hwa gave a lecture on the topic of ‘Japan’s population decline and local finance response’, and in the roundtable that followed, experts had in-depth discussions on the association’s main businesses, such as mutual aid, local accounting statistics, regional vitality support, feasibility study, and outdoor advertising, and the future direction of development. Director Nam Dong-woo of the Planning and Coordination Office introduced the current status of the association’s business and explained the threats currently posed to the association due to existing methods, such as an increase in large-scale disasters and accidents, changes in perceptions about membership, and intensifying competition among similar organizations. He then introduced response strategies such as maximizing competitiveness, strengthening capabilities, innovating work, and reinforcing policy research, and talked about future development strategies for various business areas of the association. Director Byeon Ji-seok of the Ministry of the Interior and Safety, Professor Kim Wan-hee of Gachon University, Commissioner Kim Hyeon-a of the Korea Institute of Public Finance, Professor Sim Seong-uk of Hanyang University, Professor Son Hee-jun of Cheongju University, Director Choi Du-seon of the Public Finance Research Institute, and Professor Kwak Hyeon-geun of Daejeon University also had a discussion on the direction of development of the mutual aid project. The discussion focused on the many challenges the association currently faces and the various strategic approaches it can take. The Association said “We will continue to strengthen our pivotal role in the stability and development of local finances and continue to grow sustainably toward our goal of ‘developing sound local finances’.”

강영훈 기자  kangy423@naver.com