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This research explores the financial status of local government, ana-lyzing 234 local governments using 10 budget-related financial analysis indicespublished by the Korean Ministry of Government Administration and HomeAffairs. This paper makes a correlation analysis of the index of local govern-ments and measures the financial capacity of local government, looking for thedevelopmental plan of financial capacity through a regression analysis for find-ing out factors affecting the resulting value. The results shows there was statisti-cal significance in the entire score, such as the number of public officials, thenumber of civic groups, population, and local tax per capita. Local tax per capitawas found to be most influential, followed by population.