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Fiscal disparity problems are common in metropolitan areas all over the world. The Seoul metropolitan city, as other big cities, shares the same problem. However, a local autonomy system in Korea, which had been reinstated from March 1991, contributes to the fiscal gap among local governments. The Seoul metropolitan area consists of 25 basic units of local governments which are called districts. Each district has autonomy with which they can exercise legislative, administrative, and organizational power including independent financial power. After 10 years of practicing the local autonomy system, the fiscal disparity problem has risen to the surface in the city of Seoul.To alleviate the problem of fiscal disparity the city of Seoul has proposed an exchange of tax base between the Seoul metropolitan government and the district. The proposed tax base of the city is a tobacco consumption tax and an aggregate land tax of the district. The share of the aggregate land tax revenue varies among 25 districts, whereas the variation of the tobacco consumption tax revenue is relatively small. However, those districts which have high land prices have been opposed to the idea of exchange the tax base.Therefore, this paper investigates the problem of fiscal disparity in the Seoul metropolitan area and proposes a solution by introducing the aggregate land tax base shared between the Seoul metropolitan government and the district in lieu of exchanging the tax base.