Hapcheon County Takes Action to Overcome Risk of Extinction with Rural Basic Income
Application for Pilot Program Accelerates with Additional Allocation Tax Secured
Growing Anticipation Among Residents
Hapcheon County has officially begun efforts to introduce basic income for rural communities in order to overcome the crises of population decline and stagnating local economy.
The county announced on May 6 that it had submitted an application to Gyeongsangnam-do Province for the Rural Basic Income Pilot Program. The county plans to pursue basic income as a core policy to address the risk of regional extinction and to revitalize the local economy.
Over the past 30 years, Hapcheon County’s population has decreased by approximately 48.6%, nearly halving. The county now ranks fourth nationwide in terms of the population extinction index, and its regional development index is among the lowest in the country, threatening the very existence of the community.
The county explained that the effects of implementing basic income have already been observed in several other municipalities. After analyzing the population trends in the ten counties where the program is currently in effect, they found that Sunchang County experienced a population increase of 3.31%, while Sinan County saw an increase of 8.13%. The policy was also found to have a positive impact on stimulating consumption and increasing sales, thereby revitalizing the local economy.
Both internal and external conditions have improved compared to last year. In the lead-up to the upcoming June 3 local elections, candidates for Hapcheon County Governor have signed policy agreements pledging to realize rural basic income. Additionally, there is growing interest and anticipation among residents, as seen in the establishment of the Hapcheon County Basic Income Movement Headquarters.
In particular, the biggest obstacle—financial constraints—has been partially resolved. The county stated that it can now utilize more than 10 billion won from the additional local allocation tax granted in April this year, which gives a significant boost to its application for the pilot program.
Last September, Hapcheon County postponed its application for the pilot program due to financial concerns. At the time, the Ministry of Agriculture, Food and Rural Affairs proposed a funding structure of 40% from the central government, 30% from the province, and 30% from the county. However, with uncertainty regarding the provincial funding from Gyeongsangnam-do, the county’s share—including administrative costs—could have reached up to 49.1 billion won.
Subsequently, Gyeongsangnam-do Province announced its intention to provide partial support for the basic allowance, but the county’s burden still stood at around 36.4 billion won. When adding the costs of damage recovery from the heavy rainfall in July last year, 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 postpone its application, judging that implementing the basic income project could force a reduction in independent projects and jeopardize the safety and living infrastructure of residents.
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A Hapcheon County official stated, "Last year, we lacked the financial capacity to apply for the pilot program, but with the additional allocation tax secured this year, application is now possible. While we can’t guarantee selection, we will do our utmost to ensure Hapcheon County is chosen for the basic income pilot project."
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