The current study aims to address predictable variables affecting the financial crisis of local government and to further suggest more efficient ways of improving the financial management, specifically focusing on the Jeollanam-do province. To this end, this study analyzes the operating state of the management system for the local government's financial affairs, and then seeks alternative and ideal plans so as to overcome the local government's financial crisis. It can be possibly assumed that the fundamental contributors of fiscal emergency may occur primarily due to two factors. First of all, more recently, economic recession as well as tax reduction policy done by central government could cause the decrease of local financial income. Furthermore, as the ration of financial burden in local autonomous government, for instance, social welfare expense, event planning, and wasteful expenditure, is mostly increasing, issuing of local debt has, in turn, been raised. From a prior crisis management perspective, nevertheless, functions of the early warning system are somewhat insufficient, and more effectiveness for measuring financial soundness are also needed in a post- crisis management perspective, along with a precise understanding of the current management system of local financial crisis. Taken as a whole, in an attempt to verify the best means of improving the fiscal emergency in local government, it would be argued that analyses of local finance, reinforcement of systems for safety diagnoses, improvement on the early warning system, enhancement of efficiency for finance, materialization of financial burden between governments, avoidance of operating local finance with soft budget constraints, and modification of a system for local finance management are indeed required to aid as well as maximize the improvement of fiscal emergency in local government.