Gyeongsangnam-do Decides to Provide Provincial Funding for "Rural Basic Income Pilot Project" ... Will Cover 30% of Local Government’s Share

by Lee Seryeong

Published 02 Oct.2025 15:19(KST)

Gyeongsangnam-do has reversed its previous policy and decided to partially cover the local government’s share for the government-led “Rural Basic Income Pilot Project.”

On October 2, Gyeongsangnam-do announced that it will provide provincial funding for 30% of the local government’s share required for the Rural Basic Income Pilot Project, which the Ministry of Agriculture, Food and Rural Affairs plans to implement over the next two years starting next year.

The Rural Basic Income program will select 6 out of 69 counties designated as depopulation areas at risk of extinction due to population decline and extreme aging. For two years, all residents in these counties will receive a basic income of 150,000 won per person per month, amounting to 1.8 million won per year, in the form of local gift certificates.

The basic income provided to residents will be funded 40% by the central government and 60% by local governments.

Gyeongnam Provincial Government Office. Photo by Lee Seryeong

Previously, Gyeongsangnam-do had announced that it would not provide any provincial funding for this project, citing difficulties in securing the local government’s share.

The province explained that after 98.2 billion won of provincial funds were spent on flood recovery in areas such as Sancheong following severe torrential rains in July, and with an additional 14.2 billion won to be used next year to double the agricultural and fisheries allowance from 300,000 won to 600,000 won per person, the local fiscal situation left no room for further provincial support.

Additionally, the province noted that 47.4 billion won in provincial funds had already been allocated this year for the government’s livelihood recovery consumption coupon program, which was funded 90% by the central government, 5% by the province, and 5% by city and county governments.

According to the province, if Namhae County is selected for the Rural Basic Income Pilot Project, all 39,000 residents would receive a total of 70.2 billion won annually, with the local government’s share alone amounting to approximately 42.1 billion won.

Because of this policy of not providing provincial funding, Provincial Assemblyman Ryu Kyungwan (Namhae), Namhae County, and some local residents argued that, even if selected, the project would have to be abandoned due to the heavy local financial burden, and they have continued to call for provincial support.

In response to these calls, Gyeongsangnam-do, after considerable deliberation, decided to cover 30% of the total 60% local government share.

However, the province emphasized that, unlike other government pilot projects, the central government’s funding rate for this project is low at 40%, resulting in a significant local fiscal burden.

The province argued that the central government’s share should be raised to at least 80% for the project to proceed smoothly.

According to the revised policy, even just for Namhae County, about 12.6 billion won in provincial funds will be invested.

To increase the central government’s funding rate, Gyeongsangnam-do has submitted proposals to the Presidential Committee on Agricultural and Fishing Villages and the Council of Provincial Governors. At the end of last month, the province also requested that Song Miryung, Minister of Agriculture, Food and Rural Affairs, raise the central government’s share for the Rural Basic Income Pilot Project during her visit to Gyeongsangnam-do.

Lee Jeonggon, Director of Agricultural Policy, explained the policy change by stating, “It was not an easy decision to cover the local government’s share given the difficult fiscal situation, but there was strong demand for this project from Namhae County and others, and we focused on the need to address the issue of regional extinction together with the counties, so we decided to provide partial provincial funding.”

He added, “Other local governments also agree that the local financial burden for this project should be reduced. We will continue to request and propose to the central government to increase its funding share.”

The Ministry of Agriculture, Food and Rural Affairs will accept applications until October 13, conduct evaluations, and announce the selected regions on October 17.

The ten counties in Gyeongsangnam-do designated as depopulation areas are Geochang, Goseong, Namhae, Sancheong, Uiryeong, Changnyeong, Hadong, Haman, Hamyang, and Hapcheon.