First Implementation of Hometown Love Donation System Next Year... Expected to Revitalize Local Economy

Support for Discovering Fund Projects That Local Governments and Donors Empathize With

[Asia Economy Reporter Kiho Sung] The Ministry of the Interior and Safety announced on the 29th that the Hometown Love Donation System will be officially implemented from January 1st next year, in accordance with the "Act on Hometown Love Donations," its enforcement decree, and local government ordinances.

The "Hometown Love Donation System" is a system where individuals can donate to local governments other than their registered address, and the local governments collect these donations to use them for improving residents' welfare and other purposes. This is the first time such a system is being implemented domestically, and it is expected to contribute to balanced development through expanding local finances and revitalizing the regional economy via donations.

The donation limit is 5 million KRW per person annually, and donations can be made to any local government except the one registered as the resident's address. Donations of 100,000 KRW or less are fully tax-deductible, and for amounts exceeding 100,000 KRW, a 16.5% deduction is available. Additionally, donors will receive thank-you gifts worth up to 30% of the donation amount, which is expected to significantly contribute to regional economic revitalization. For example, if a donor contributes 100,000 KRW, they can receive benefits worth 130,000 KRW.

Local governments can raise funds using government advertising media (newspapers, periodicals, broadcasting, outdoor advertisements, news/communications, internet, etc.). However, the law prohibits coercion, solicitation, or encouragement through individual phone calls, letters, door-to-door visits, private gatherings such as hometown associations or alumni meetings, and actively encouraging or soliciting donations by attending or visiting events hosted, organized, or sponsored by local governments.

When local governments collect donations through advertising media, they must provide donors with accurate information, including the name of the local government, the purpose of the fund project, donation procedures and methods, and information about thank-you gifts. Also, when accepting donations, local governments must verify the donor's address and identity, whether the annual total donation exceeds 5 million KRW, and whether the donor wishes to receive thank-you gifts.

Donors can receive thank-you gifts such as local specialty products produced in the respective region. Regarding this, thank-you gifts are limited to within 30% of the total donation amount per individual to prevent excessive competition among local governments.

The Ministry of the Interior and Safety has established an integrated (one-stop) information system called "Hometown Love e-um" to enable donors to donate easily and conveniently, and plans to provide year-round services starting January 1st next year along with the system's implementation. Donors can conveniently donate to 243 local governments nationwide through Hometown Love e-um and can also check the search and delivery status of thank-you gifts in real time. Furthermore, by linking with the resident registration system and others, the system can automatically verify the donation restrictions based on the registered address and whether the donation limit of 5 million KRW has been exceeded. It is also linked with the National Tax Service's year-end tax settlement system to automatically apply tax deductions without the donor having to apply separately.

Besides the "Hometown Love e-um" system, donations can also be made by directly visiting over 5,900 NongHyup branches nationwide.

Choi Hoon, Director of Local Autonomy Balanced Development Office at the Ministry of the Interior and Safety, stated, "The successful establishment of the Hometown Love Donation System, which will be implemented for the first time next year, is of utmost importance," and added, "The Ministry of the Interior and Safety will actively support local governments in discovering thank-you gifts and fund projects that resonate with donors, striving to ensure that the Hometown Love Donation System enhances regional vitality and contributes to balanced development."

This content was produced with the assistance of AI translation services.