Seven more counties added, bringing pilot sites to 17; population up 4.7%, affiliated merchants up 13.5% in existing zones

President Lee Jae Myung speaks at a press conference marking his first anniversary in office, held at Cheong Wa Dae's Yeongbingwan on Monday. [Yonhap]
President Lee Jae Myung speaks at a press conference marking his first anniversary in office, held at Cheong Wa Dae's Yeongbingwan on Monday. [Yonhap]

"Move to the countryside and get 150,000 won (about $98) every month?"

As the government expands its rural basic income pilot program, interest is growing among people considering a move to the countryside. Okcheon-gun in North Chungcheong Province, one of the newly designated pilot areas, has been fielding a steady stream of inquiries — "Can I get it just by changing my registered address?" and "Who qualifies?" are among the most common questions.

The Ministry of Agriculture, Food and Rural Affairs announced Saturday that seven counties — Hwacheon in Gangwon Province, Boeun in North Chungcheong Province, Jinan and Muju in North Jeolla Province, Gurye and Boseong in South Jeolla Province, and Cheongsong in North Gyeongsang Province — had been selected as new pilot sites for the rural basic income program. The addition brings the total number of participating counties from 10 to 17.

The rural basic income program was introduced to counter population decline and the threat of regional extinction. Residents who maintain their registered address in a designated area and actually live there for a set minimum period receive 150,000 won per month.

The payments, however, are not made in cash. They are issued as local gift vouchers, designed to encourage residents to spend within the community — at neighborhood shops and traditional markets — and inject vitality into the local economy.

Existing residents can apply once they meet a 30-day residency requirement. Newcomers moving in from other areas must complete a 90-day actual-residency verification process before receiving payments — a safeguard against fraudulent address transfers made solely to collect the benefit.

The Ministry of Agriculture, Food and Rural Affairs views the rural basic income not simply as a welfare measure but as a policy aimed simultaneously at attracting new residents and revitalizing local economies. The goal is to breathe new life into depopulating rural communities and restore local commerce and community ties.

Early results from the existing pilot areas have shown some evidence of population inflow and economic revitalization, prompting the government to scale up the program and test a wider range of models tailored to each region's characteristics.

Among the newly selected sites, Hwacheon in Gangwon Province plans to link revenue from its Sancheoneo Ice Festival to the basic income fund, while Boeun in North Chungcheong Province has proposed supplementing the program with its own local budget. Jinan and Muju in North Jeolla Province are focusing on building a virtuous cycle of local consumption, while Gurye and Boseong in South Jeolla Province plan to test consumer spending effects through local-currency cashback and tiered rebate schemes. Cheongsong in North Gyeongsang Province will pair the program with free bus services and daily-life care support to measure its effectiveness in restoring livability to areas hit by wildfires.

Payments began in late February in the original 10 pilot counties — Yeoncheon in Gyeonggi Province, Jeongseon in Gangwon Province, Okcheon-gun in North Chungcheong Province, Cheongyang in South Chungcheong Province, Sunchang and Jangsu in North Jeolla Province, Gokseong and Sinan in South Jeolla Province, Yeongyang-gun in North Gyeongsang Province, and Namhae in South Gyeongsang Province. According to the ministry, the combined population of those 10 counties rose 4.7 percent, from 319,005 in September last year to 334,150 in May this year. Over the same period, the number of merchants registered to accept the local vouchers grew 13.5 percent, from 14,253 to 16,180.

On-the-ground changes in local commerce are also emerging. In Okcheon-gun, a resident who ran a motorcycle repair shop opened an additional everyday grocery store. In Cheongyang, a new convenience store moved into a vacant storefront. In Sunchang, an eel restaurant that had been on the verge of closing has started welcoming customers again.

Residents say they can feel the difference.

Kim Tae-bum, 47, a resident of Yeongyang-gun in North Gyeongsang Province, said the voucher format has nudged neighbors toward local shops. "Because the basic income comes as local currency, people are using neighborhood stores more than before," he said. "Even small-business owners say they're seeing more customers — there's a real sense of energy returning to the area." He added, "It's not a large amount, but what matters is that money has started circulating within the community."

Lim Saet-byeol, 40, moved from Incheon to Sunchang in North Jeolla Province in February while searching for a place to settle for her children's rural schooling experience. "I was already thinking about rural life, and the basic income policy also influenced my decision," she said. "I expect it will help ease the financial burden in the early days of settling in."

Lim is set to begin receiving the rural basic income next month, after completing the residency verification period following her move. "I decided to relocate for my children's education, and now I'll be able to receive the basic income on top of that — I'm really looking forward to it," she said.

Policy interest has intensified since President Lee Jae Myung recently called for expanding the program. On June 10, Lee shared a news article highlighting the effects of the rural basic income in Okcheon-gun and said, "Even with a two-year pilot, the results are this significant — if it were made permanent, the impact would be far greater."

But as interest grows, so do the practical challenges.

The central issue is funding. The Korea Rural Economic Institute estimated in a recent report that a nationwide rollout of the rural basic income, following the pilot phase, would require roughly 5 trillion won per year. Kim Tae-hu, a research fellow at the institute, wrote in the report that "legislation and a stable funding mechanism are needed to ensure the program's continuity."

Analysts say whether the rural basic income can be expanded nationwide ultimately depends on how convincingly it demonstrates its effects on population inflow and local economic revitalization — and on whether a sustainable funding source can be secured.

The government plans to conduct a comprehensive analysis of the pilot program's outcomes — including population growth and broader economic ripple effects — before deciding on the direction of a full-scale rollout. With early gains in population and consumer spending now on record, the key question going forward is whether those results can be sustained as lasting policy outcomes rather than a temporary spike.


adastra@heraldcorp.com