Gangwon Province to Invest 160 Billion Won in "People-Centered" Initiatives ... Tackling Population Decline Head-On

Gangwon Special Self-Governing Province is making a decisive shift in its approach to tackling the population extinction crisis, moving from “infrastructure construction” to “investment in people.” While previous efforts focused on visible facility construction such as hydrogen clusters and advanced city development, the new plan aims to concentrate provincial resources on software projects such as welfare, education, and healthcare that residents can experience in their daily lives.

Jintae Kim, Governor of Gangwon Province, declared at the 147th regular press briefing on the 13th, "If the first phase of the Local Extinction Response Fund was 93% invested in facility construction, the second phase project starting in 2027 will be drastically shifted to a 'people-centered' software project." Provided by Gangwon Province

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Kim Jin-tae, Governor of Gangwon Special Self-Governing Province, declared at the 147th regular press briefing held at the provincial government press room on April 13, “If 93% of the Phase 1 Local Extinction Response Fund was spent on facility construction, the Phase 2 project starting in 2027 will undergo a major shift to a 'people-centered' software project.”

Gangwon Province expects a massive investment totaling 160 billion won, combining 83.4 billion won in provincial funds with additional city and county budgets. In particular, the province plans to raise the proportion of strategic projects directly planned by the province to 60%, aiming to foster inter-municipal cooperation that transcends barriers between cities and counties.

The Local Extinction Response Fund was established under the Local Finance Act to address population decline. Since 2022, the Ministry of the Interior and Safety has been allocating approximately 1 trillion won annually for 10 years, providing differential support to local governments based on the evaluation of their investment plans.

Metropolitan governments receive a fixed amount based on the degree of population decline and fiscal conditions in each region, while basic local governments receive differential support depending on the results of their investment plan evaluations.

From 2022 to 2026, the province implemented 27 projects with a total investment of 142.4 billion won in the first phase of the fund, of which 25 projects (93%) focused on infrastructure such as facility construction.

By sector, 70.9 billion won was invested in industry, including the creation of a specialized hydrogen company cluster in Samcheok, development of the Hongcheon K-Bio advanced city, and construction of a mobility job support center in Hoengseong. Another 46.7 billion won was allocated to improving living conditions, such as the Hwacheon Gandong Complex Healing Town, Cheorwon Health Promotion Rehabilitation Center, and establishing an integrated ICT care system at the Yeongwol Digital Convalescent Hospital. The tourism sector received 24.8 billion won for projects like the Gangneung Smart Workation pilot city and the Donghae Mukho Nongoldam-gil Youth Special Zone.

For the second phase of the fund project, which will be implemented from 2027 to 2031, the focus will expand to “people-centered” program projects (software) in welfare, healthcare, education, and job creation, aiming to create an environment where people settle and stay in the region by supporting the residential population and increasing the influx of residents and foreigners.

Local Extinction Response Fund. Provided by Gangwon Province

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In particular, the second phase will break away from the previous city and county budget support-oriented operation and shift to a cooperative system where the province and local governments jointly participate. Strategic projects directly planned and implemented by the province will account for 60% of the total (50 billion won), support projects for initiatives that are difficult for cities and counties to pursue alone will make up 20% (16.7 billion won), and projects that respond quickly to local issues will comprise 20% (16.7 billion won). The province and cities/counties will work together to address population extinction.

In addition, to help cities and counties discover projects suitable for their regional characteristics, the province will provide ongoing expert consulting in various fields such as regional development, tourism, education, and healthcare, with the aim of identifying projects with a high effect on population inflow and enhancing policy effectiveness.

Governor Kim Jin-tae stated, “Until now, investment has been focused on infrastructure, but going forward, we plan to shift to a people-centered approach. The 83.4 billion won to be invested comes entirely from provincial funds, and when city and county funds are included, the total will expand to 160 billion won, making this a larger investment than Phase 1.”

Gangwon Special Self-Governing Province announced that, in response to the continued high oil prices and inflation due to recent external uncertainties such as the Middle East conflict, it will launch full-scale preparations to provide “High Oil Price Relief Payments” by investing a total of 62.6 billion won from provincial and city/county funds.

This relief payment is intended to ease the double burden on low-income residents caused by high oil prices and inflation. Depending on income level and local conditions, recipients will receive between a minimum of 150,000 won and a maximum of 600,000 won.

The first round of payments will accept applications from basic livelihood security recipients, lower-income families, and single-parent families from April 27 to May 8. The second round will be open to province residents in the bottom 70% income bracket, with applications accepted online and offline from May 18 to July 3. The relief funds can be used until August 31, and any unused amount after this period will expire.

Kim Jin-tae, Governor of Gangwon Provincial Special Autonomous Region, is holding the 147th regular press briefing on the 13th. Provided by Gangwon Province.

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The total estimated project size is approximately 313.3 billion won, with 62.6 billion won in local government funds to be invested, including about 31.3 billion won from the provincial budget.

Governor Kim Jin-tae said, “With this high oil price relief payment, we will support residents in the bottom 70% income bracket. Initially, the province had considered providing payments to all residents to address livelihood difficulties, but the central government unilaterally imposed the 70% support criterion without prior consultation, which is regrettable.”

He added, “In line with government policy, we will invest 62.6 billion won in local funds to ensure resident support proceeds without issue, and we will utilize provincial reserves and other resources to cooperate as much as possible.”

As Governor Kim Jin-tae is scheduled to register as a preliminary candidate for the 9th local elections on April 14, Gangwon Province will shift to an acting governor system led by Executive Vice Governor Yeo Junghyup for 50 days, until June 3.

In his final press briefing, Governor Kim emphasized four major priorities: securing 10.7 trillion won in national funding, responding to disasters such as wildfires, managing the cost of living, and upholding discipline in public service and election neutrality. Vice Governor Yeo, drawing on over a year of experience leading provincial administration, will seek to minimize administrative gaps and address livelihood issues.

Executive Vice Governor Yeo Junghyup has jointly led the provincial administration for over a year since taking office on January 6, 2025, and will focus on securing next year’s national funding, responding to disasters such as wildfires, stabilizing the local economy, and ensuring fair election management to maintain seamless administration.

Jintae Kim, Governor of Gangwon Special Self-Governing Province, is holding the 147th regular press briefing on the 13th. Provided by Gangwon Province

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Governor Kim Jin-tae said, “To date, I have held 147 press briefings as governor, and after registering as a preliminary candidate tomorrow, the provincial administration will shift to the acting governor system under Executive Vice Governor Yeo Junghyup.”

He went on to say, “In terms of the budget, we will ensure prompt execution and work without setbacks to secure 10.7 trillion won in national funding for next year. We must also thoroughly prepare for disaster response so that Gangwon can go three years in a row without major wildfires. Please focus on four key areas: supporting businesses and managing the cost of living in response to external uncertainties such as the Middle East situation, and upholding public service discipline and fair elections for election neutrality.”

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