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South Korea's monthly vouchers aim to revive shrinking rural towns
🇸🇬 Singapore /Economy & Trade

South Korea's monthly vouchers aim to revive shrinking rural towns

From CNA · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • A pilot program in South Korea offers monthly vouchers to rural residents to boost local spending and attract new inhabitants.
  • The initiative, including a mobile supermarket, aims to reverse decades of depopulation and make rural life more sustainable.
  • While the program has increased local spending and population, officials believe more is needed to overcome long-term demographic challenges.

Okcheon County, South Korea, is experimenting with monthly cash vouchers to revitalize its shrinking rural communities. The pilot program, launched in December, provides eligible residents with 150,000 won (US$103) each month, usable at designated local businesses.

I buy bean sprouts, tofu and ice cream. It's much more convenient than having to go to a store.

— residentdescribing the convenience of the mobile supermarket

The initiative aims to boost local spending and attract new residents, tackling decades of population decline. A mobile supermarket, one of the participating businesses, brings essential groceries directly to elderly residents who may lack transportation. "I buy bean sprouts, tofu and ice cream. It's much more convenient than having to go to a store," said one resident.

Mayor Hwang Kyu-chul credits the program with helping Okcheon regain about 2,000 residents since its start, pushing the population back above 50,000. Newcomer Yang Hee-su, a 33-year-old hairdresser, noted the voucher scheme has helped his business. "The basic income has to be used in the village where you actually live … and (customers) have been coming in and using (the vouchers) a lot," he said.

I don’t have a car. Without transportation, it’s hard to get around.

— residentexplaining the challenges of accessing services in the rural village

Local businesses also report increased sales. Peach grower Kwak Jung-seop said spending at his market stall rose by 20 to 30 percent. "It's not just about population inflow," he added. "I'm using it myself too. We eat out more and we buy farming supplies and pesticides with it."

The basic income has to be used in the village where you actually live … and (customers) have been coming in and using (the vouchers) a lot.

— Yang Hee-suhairdresser and new resident, on the impact of the voucher scheme on his business

Despite these successes, officials acknowledge that reversing deep-seated depopulation trends will require more than financial incentives. The long-term sustainability of rural communities remains a significant challenge.

It's not just about population inflow. I'm using it myself too. We eat out more and we buy farming supplies and pesticides with it.

— Kwak Jung-seoppeach grower, on how the voucher program has boosted his sales and personal spending
DistantNews Editorial

Originally published by CNA in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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