- The Current State of Local Extinction and the Golden Time
- Core Trends in Depopulated Area Support and Balanced Development
- Key Policies: Detailed Analysis of Special Acts and Benefits
- Hometown Love Donation: How to Participate and Real Benefits
- Frequently Asked Questions (FAQ)
- Envisioning a Warm Future Coexisting with Regions
1️⃣ The Current State of Local Extinction and the Golden Time
As the concentration in the Seoul metropolitan area collides with low birth rates and an aging population, various regions in Korea are sounding serious alarms of "extinction risk." Beyond simple population decline, a vicious cycle is repeating where schools close, hospitals disappear, and basic living infrastructure collapses. This is a critical issue that not only lowers the quality of life for residents but also weakens the overall competitiveness of the nation. However, crisis can be an opportunity. Now is the "Golden Time" to reverse the flow of local extinction and foster regional self-sufficiency. It is time for the government, local authorities, and citizens to join forces.
2️⃣ Core Trends in Depopulated Area Support and Balanced Development
While past policies were "defensive," focusing merely on preventing population outflow, recent trends have shifted toward an active direction of increasing the "living population" and "relationship population." This acknowledges the limits of increasing permanent residents and introduces a concept encompassing people who stay or visit regularly for economic activities. Furthermore, customized development strategies that highlight the unique characteristics of each region are emphasized over uniform support.
- Introduction of Living Population: The scope of support is expanding by counting not only registered residents but also those who stay for more than 3 hours a day, at least once a month.
- Designation of Opportunity Development Zones: Quality jobs are created by selecting regions that offer unprecedented tax benefits and regulatory exemptions to induce companies to relocate to local areas.
- Region-Led Development: A bottom-up model is taking root, where local governments establish their own development plans and the central government provides comprehensive support.
3️⃣ Key Policies: Detailed Analysis of Special Acts and Benefits
Special Act on Support for Depopulated Areas
The state provides all-around special exemptions in childcare, education, medical care, housing, and transportation for areas designated as depopulated. For example, young people or newlyweds moving to these areas receive drastic interest rate support for home purchase loans or corporate tax reductions for startups. This plays a key role in lowering the barrier to regional settlement.
Special Act on Balanced Development and Opportunity Development Zones
Under the recognition that attracting companies and creating jobs is the most certain way to prevent local extinction, the "Opportunity Development Zone" system is implemented. Companies investing here receive unprecedented incentives, such as expanded inheritance tax deductions and income/corporate tax exemptions. This creates a virtuous cycle where talent gathers in local areas instead of leaving for the capital.
Activation of "Second Homes"
Even if a current one-home owner acquires an additional house with an official value of 400 million KRW or less in a depopulated area, they are considered a one-household, one-home owner for tax benefits (property tax, comprehensive real estate tax, etc.). This induces retirees or urbanites seeking weekend rest to establish bases in local areas, revitalizing the regional economy.
4️⃣ Hometown Love Donation: How to Participate and Real Benefits
- 130,000 KRW Benefit for a 100,000 KRW Donation: Donations up to 100,000 KRW are fully tax-deductible (refunded during year-end settlement), and you receive regional specialties worth 30,000 KRW (30% of the donation) as a gift. It effectively costs you zero and gives you 30,000 KRW in benefits.
- Using the 'Hometown Love e-Eum' Website: Access the 'Hometown Love e-Eum' homepage to easily select a local government to donate to and choose your return gift. Donations are possible to any local government except your place of residence.
- Contributing to Regional Revitalization: Collected donations are used transparently for the welfare of residents, such as supporting vulnerable groups, nurturing youth, and revitalizing local communities. Your small donation becomes a catalyst for saving a region.
2️⃣ Understanding Core Insights at a Glance
Regional extinction response policies are not just about pouring in budgets; they focus on creating a sustainable ecosystem. This section summarizes the core principles hidden in complex policies.
'Relationship Population' Saves Regions
Now, 'where you form a relationship' has become more important than 'where you live.' As the number of people connecting with regions through weekend farms, workations, and month-long stays increases, the local economy gains vitality.
Why is Relationship Population Important?
Because they not only provide immediate economic effects through specialty consumption and tourism but also represent a potential migration demand that can lead to permanent settlement in the long term.
Efforts of Local Governments to Attract Investment
Beyond simple subsidies, each local government is fiercely competing and cooperating to create a business-friendly environment through regulatory sandboxes and customized talent nurturing.
5️⃣ Frequently Asked Questions (FAQ)
💡 Practical Tip
If you are an office worker, don't miss the 'Hometown Love Donation.' Donate 100k KRW, get 100k back, and receive 30k worth of gifts. It's effectively a financial tech strategy that earns you 30k KRW. Couples can participate individually to double the benefits.
⚠️ Key Points to Remember
Only individuals can participate in the Hometown Love Donation; corporations or groups cannot. Also, reselling return gifts on second-hand markets is legally prohibited. Please follow these rules for a healthy donation culture.
6️⃣ Closing Message
The local extinction crisis is not a story of the distant future but a reality we face now. However, if active support policies for depopulated areas, the Special Act on Balanced Development, and citizen-participatory systems like Hometown Love Donation come together, the spark of hope will surely be revived.
"It takes a whole village to raise a child," and similarly, it takes the warm interest of the entire nation to save a region. Your small donation and visit become a great strength for local areas.
- Active support policies like 'Living Population' and 'Opportunity Development Zones' are in place to overcome local extinction.
- Various special benefits in housing and taxes are available for moving to or starting businesses in depopulated areas.
- Hometown Love Donation is a 'Prime' system where a 100k KRW donation earns a full tax deduction plus a 30k KRW gift.
- The Second Home policy allows one-home owners to maintain their tax status when purchasing a house in a depopulated area.
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