Gangwon and South Chungcheong to receive 6.6 billion won each from the Local Extinction Response Fund; Incheon and South Jeolla to get 1.7 billion won

[Financial News] Gangwon and South Chungcheong received the top rating in the investment plan evaluation for the metropolitan support account of the Local Extinction Response Fund and will each be allocated 6.6 billion won. Incheon and South Jeolla will each receive 1.7 billion won, a difference of 4.9 billion won from the top-rated regions. The government’s first introduction of evaluation-based differential allocations for the metropolitan support account has created disparities in the amounts allocated to each region.
The Ministry of the Interior and Safety said on the 11th that it would allocate 50 billion won, out of the 250 billion won in the metropolitan support account of the Local Extinction Response Fund, to 15 cities and provinces nationwide based on the results of investment plan evaluations.
The evaluation selected Gangwon and South Chungcheong for the top rating, with each receiving 6.6 billion won. Six regions—Busan, Daegu, North Chungcheong, North Jeolla, South Gyeongsang and Jeju—received the excellent rating and will each be allocated 3.4 billion won. Five regions—Gwangju, Daejeon, Ulsan, Gyeonggi and North Gyeongsang—received the average rating and will each receive 2.6 billion won, while Incheon and South Jeolla received the satisfactory rating and will each get 1.7 billion won. The allocation for the top-rated regions is about 3.9 times that for the satisfactory-rated regions.
The six regions with the excellent rating received the largest total allocation, at 20.4 billion won. The two top-rated regions received 13.2 billion won, the five with the average rating received 13 billion won, and the two with the satisfactory rating received 3.4 billion won.
The Local Extinction Response Fund is a funding pool established annually at 1 trillion won from 2022 through 2031 to address population decline and local extinction. It is divided into a 750 billion won basic support account for areas with declining populations and others, and a 250 billion won metropolitan support account allocated to 15 cities and provinces, excluding Seoul and Sejong.
Until now, allocations from the metropolitan support account were determined using a formula based on population and fiscal conditions. Starting this year, however, the government introduced investment plan evaluations for 50 billion won, or 20% of the total funds. Another 150 billion won will be allocated according to the existing formula, while 50 billion won will be used to establish the Regional Revitalization Investment Fund.
The regional amounts announced this time are limited to the 50 billion won allocated through the evaluation. The announcement did not include the total support amount for each city and province, including allocations determined by the formula.
In this evaluation, the ministry examined metropolitan governments’ roles in planning and coordinating projects, connections and cooperation among cities and counties, and the identification of projects suited to local conditions and their feasibility, among other factors.
Gangwon, which received the top rating, will establish “Resident Happiness Villages” in Yeongwol and Hwacheon, linking housing with medical care, caregiving and transportation services. The province was highly rated for jointly planning projects with cities and counties and participating in funding and performance management, among other things.
South Chungcheong will pursue Resident Happiness Villages in Boryeong and Cheongyang, as well as an artificial intelligence (AI) integrated care project. The province has set the projects’ direction, coordinated roles among cities and counties, and established a system to support project development and planning in nine cities and counties.
South Gyeongsang proposed a project to support a public children’s rehabilitation hospital that residents of multiple cities and counties can use, while North Chungcheong proposed “The Running General Store,” which travels to areas with limited access to groceries. Incheon submitted a project to support a transportation system connecting Ongjin County, Yeongjong District and Jemulpo District.
Interior Minister Yun Ho-jung said, “The introduction of an evaluation for the metropolitan support account of the Local Extinction Response Fund is intended to improve outcomes in responding to local extinction by having cities and provinces plan projects with the entire region in mind and foster cooperation among cities and counties.”
The Fund Management Association plans to allocate the funds to metropolitan governments on the 30th.

[email protected] Lee Bo-mi Reporter