Rural Basic Income Pilot Boosts Local Economy and Population in South Korean Counties

A pilot basic income program for rural areas in South Korea's Jangsu and Sunchang counties is demonstrating tangible benefits just four months after its launch. The initiative, aimed at revitalizing local economies and improving residents' lives, has spurred an increase in local businesses and attracted new residents to the regions.

Data from the North Jeolla Provincial Government reveals a nearly 20% rise in the number of local businesses accepting the regional currency, growing from 2,200 to 2,635 by the end of April. More than half of these new businesses are located in smaller towns, encompassing a range of sectors including restaurants, personal services, and general retail. Officials believe the basic income, distributed as regional currency, encourages spending within local communities, thereby expanding small-scale commercial areas.

The program has also influenced population dynamics, with 1,541 new residents moving into Jangsu and Sunchang counties since its inception. The monthly payment of 150,000 won to eligible residents is seen as a contributing factor to attracting individuals and families looking to settle in rural areas.

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The rural basic income is leading to effects that create spending and population flow within the region.

Of the 25.9 billion won distributed by the end of April, 63% (16.5 billion won) was spent within the counties, primarily at restaurants, grocery stores, and gas stations, indicating a focus on essential living expenses. A survey of 1,222 residents and business owners revealed that over 65% reported improvements in their living conditions, social services, and community relationships.

Notably, 67% of survey respondents expressed a preference for spending in smaller towns over larger ones if services were comparable. This trend is reflected in the actual spending data, with businesses in smaller towns accounting for 31% of basic income payments, compared to 21% in larger towns. The provincial government views this as a sign of the viability of local economies in smaller towns and plans to further support this by promoting local agricultural products and mobile markets.

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We will continue to supplement policies in a direction that increases the sustainability of rural areas.