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Four Metropolitan Cities and Provinces Hosting Nuclear Power Plants Jointly Propose an Increase in the Local Resource and Facility Tax Rate

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Busan Metropolitan City (Mayor Park Heong-joon) announced that the Administrative Consultative Council of Metropolitan Cities and Provinces Hosting Nuclear Power Plants (hereinafter “the Council”) submitted a joint proposal today (May 27) to the Ministry of the Interior and Safety and the National Assembly to request a realistic adjustment to the local resource and facility tax rate for nuclear power generation.

The Council is a cooperative body composed of the cities and provinces where nuclear power plants are located—Busan, Ulsan, Jeollanam-do, and Gyeongsangbuk-do—and has held annual rotating meetings hosted by each member region since 2015.

In the joint proposal, the four local governments called for the revision of the Local Tax Act to raise the current tax rate to KRW 2 per kWh, aiming to ensure stable local financial resources and strengthen measures to safeguard residents.

The proposed amendment to the Local Tax Act strongly urges the government to reinforce the financial foundation for nuclear safety management and resident protection, and to introduce institutional mechanisms to provide practical compensation for the adverse impacts experienced by regions hosting nuclear power plants.

The Council pointed out that the current tax rate (KRW 1 per kWh), which has remained unchanged since 2015, does not reflect changes in circumstances such as inflation and income growth.

Moreover, it emphasized the increased financial burden on metropolitan cities resulting from the 2024 revision of the Local Finance Act, which requires allocating a portion of the local resource and facility tax revenue to local districts within radiation emergency planning zones. This has led to a reduction in metropolitan city revenues, even as costs for radiation disaster response, nuclear safety management, alleviating public concerns, and environmental improvements continue to rise.

Lee Jun-seung, Deputy Mayor for Administrative Affairs of Busan Metropolitan City, stated, “A sustainable financial foundation is essential for addressing the risk of local extinction and resolving regional disparities,” adding, “We hope that the tax rate adjustment will lead to greater public acceptance and increased investment in safety.”

Meanwhile, the Council plans to continue discussing measures to strengthen nuclear safety and resident protection through regular meetings and to present policy proposals that reflect the voices of the regions concerned.