Hapcheon County Applies for Rural Basic Income Pilot Project in Bid to Overcome Regional Extinction Crisis

Eased Financial Burden with Additional Grants
Expectations for Overcoming Population Decline and Economic Stagnation

Hapcheon County in South Gyeongsang Province has officially launched efforts to introduce a basic income for rural communities as a way to overcome the crisis of population decline and economic stagnation in the region.

On May 6, the county announced that it had submitted an application for the Rural Basic Income Pilot Project to the South Gyeongsang Province government, accelerating the push for basic income policies.

Over the past 30 years, Hapcheon County's population has declined by approximately 48.6%, intensifying the risk of regional extinction. With the county ranking fourth nationwide in the population extinction index and remaining at the lowest level in the national regional development index, authorities in Hapcheon see the basic income policy as a key solution for regional revitalization.

[Photo by Hapcheon County] Panoramic view of Hapcheon County Office

The county is also paying close attention to the potential effects of implementing basic income. Some local governments that have already adopted such policies have reported population increases—for instance, Sunchang County saw a 3.31% rise and Sinan County an 8.13% rise. In addition, there have been confirmed economic ripple effects, including increased consumption and revitalization of local businesses.

External and internal conditions have also improved compared to last year. With the June 3 local elections approaching, candidates for Hapcheon County governor have signed policy agreements to realize rural basic income, creating a consensus on the issue and raising expectations among residents.

Most importantly, the biggest obstacle—financial constraints—has been partially resolved. Hapcheon County explained that it was able to pursue the application for the pilot project after securing more than 10 billion won from additional local government grants allocated in April this year.

In contrast, the county had postponed applying for the pilot project last year due to financial burdens. At the time, the Ministry of Agriculture, Food and Rural Affairs suggested a funding structure of 40% from the central government, 30% from the province, and 30% from the county. However, with the provincial government's funding remaining uncertain, the county's share, including administrative costs, could have reached as much as 49.1 billion won.

Afterwards, South Gyeongsang Province announced its intention to partially support the basic allowance, but the county's burden still stood at about 36.4 billion won. Moreover, with the addition of restoration costs from last year's severe flooding, the county's total financial burden was expected to rise to as much as 88.1 billion won.

At the time, the county decided to defer the application, judging that, given the financial circumstances, promoting the basic income project could require scaling down other county initiatives and disrupt essential projects related to resident safety and living infrastructure.

A Hapcheon County official stated, "Last year, it was difficult to apply due to our financial situation, but with the additional grants secured this year, we are now able to proceed. While we cannot guarantee selection, we will do our best to ensure that Hapcheon County is chosen for the basic income pilot project."

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