'Rural Residents Allowance' to Be Prioritized for Interested Regions [New Government Policy Issue]

Final Deliberations Over Eligibility and Payment Amounts

The "Rural Residents Allowance," a program that provides a fixed monthly stipend to residents in rural and fishing villages, is expected to be implemented as a pilot project led by local governments that express interest. The plan is to first launch the pilot project in municipalities willing to match national funding with local funds, then analyze the results before considering a nationwide rollout.

According to an investigation by Asia Economy on July 25, the National Policy Planning Committee and the government are scheduled to announce the payment plan for the Rural Residents Allowance as part of a national policy agenda in mid-August.

The Rural Residents Allowance will initially be introduced as a pilot program rather than a full-scale implementation. Regions selected for the pilot are likely to be those local governments that are willing to provide their own allowances alongside national funding. A government official explained, "We intend to match a certain amount of local funds with national funds for the Rural Residents Allowance. This is to reduce the fiscal burden on the central government and to reflect the commitment of local governments to the project." He added, "Since the decision to expand the program will depend on the outcomes, it will be implemented in a pilot format rather than as a full-scale rollout."

The payment plan for the Rural Residents Allowance, which will be included in the national policy agenda, is being discussed based on President Lee Jaemyung's proposal. During his presidential campaign, President Lee pledged to "work with local governments to gradually provide the Rural Residents Allowance as local currency, starting with areas at risk of extinction." The strategy aims to transform rural areas into places for work, life, and rest for the people, and to contribute to revitalizing local economies and promoting balanced regional development.

Previously, the government submitted several proposals for the Rural Residents Allowance to the National Policy Planning Committee. Final discussions are now underway regarding the eligibility criteria and payment amounts. The areas eligible for the Rural Residents Allowance are those at risk of extinction, defined as regions experiencing population decline. According to the Ministry of the Interior and Safety, there are 89 cities, counties, and districts designated as population-declining areas. Broadly speaking, the allowance will be targeted at rural areas with declining populations.

The expected payment amount is in the range of 150,000 to 200,000 won per month, as mentioned by President Lee during his campaign. In May of this year, President Lee visited Jinangun in North Jeolla Province and told local business owners that "the central and local governments will support 150,000 to 200,000 won per person per month in local currency" through the Rural Residents Allowance. Gyeonggi Province has already implemented a pilot project for basic rural income since 2022, during President Lee's term as governor, providing 150,000 won per person per month in local currency to residents of Cheongsanmyeon in Yeoncheon County. The funding was split 70% by Gyeonggi Province and 30% by Yeoncheon County.

Other local governments are either planning or have already implemented similar allowances for farmers and fishers (basic income for farmers). Yanggu County recently selected recipients for its agricultural and fisheries allowance, planning to provide 700,000 won per person per year in Yanggu Love Gift Certificates. South Jeolla Province is providing 600,000 won per household per year to those engaged in agriculture, fisheries, or forestry. These allowances are paid in the form of local currency or Zero Pay, among other methods.

Even if the Rural Residents Allowance is funded jointly by the national and local governments, a significant financial outlay is unavoidable. According to the National Assembly Budget Office, implementing a basic rural income nationwide would require about 16.3 trillion won annually, totaling 86.8 trillion won over five years. However, if pilot projects are limited to rural areas with clear population decline and the financial burden is shared with local governments, the actual fiscal cost may be lower.

A government official stated, "We are conducting in-depth reviews and discussions on various issues related to the president's pledges, including the Rural Residents Allowance," and added, "A more detailed policy direction will be announced soon as part of the national policy agenda."

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