In This Place Where 150,000 Won Is Given Monthly Per Person... 90% of the Funds Were Actually Spent

"90% of Basic Income Spent Locally"

Namhae-gun Sees 34.2% Sales Surge

Far Outperforming South Gyeongsang Average

Namhae Bitdamchon. Namhae Tourism and Culture Foundation

The "Basic Income for Rural Areas" program currently implemented in Namhae County, South Gyeongsang Province, has been found to inject clear vitality into the local economy. This is seen as a case where a small provincial city, which had faced the dual crisis of population decline and a sluggish commercial sector, succeeded in boosting consumption and even attracting new residents through a cash-based support policy.

Sales Increase by 34%...Significantly Outperforming Gyeongnam Average

According to research results released by Namhae County on July 1, local commercial sales have expanded noticeably since the full-scale distribution of basic income. As of April this year, total regional sales increased by 34.2% compared to the same month last year, showing a steep upward trend.

During the same period, the average sales growth rate for the entire South Gyeongsang Province stayed in the 2% range, making the gap more than 30 percentage points. The fact that the policy's impact is immediately visible in the numbers is considered highly significant.

'Local Currency Effect'...Most Consumption Remains Within the Region

The core of this achievement is the high rate of consumption conversion. The basic income, provided at 150,000 won per person per month to residents, was converted into actual spending at a rate close to 90%.

In particular, because it was distributed in the form of local currency, spending remained concentrated within the local commercial district and did not flow outside the region. This directly led to increased sales for small business owners and reinforced the virtuous cycle of the local economy.

By business sector, categories closely tied to daily life—such as leisure and culture, healthcare and medical, and distribution—grew evenly, aligning with the region's characteristic high proportion of elderly residents.

Increase in Startups, Decrease in Closures...Commercial District Recovers 'Basic Strength'

With stable basic consumption supplied, positive changes have also emerged in the self-employed ecosystem. From March to May, there were 95 new business openings but only 48 closures. This is interpreted as a sign that the market's sustainability is improving, going beyond a mere short-term increase in consumption.

Basic Income for Rural Areas Image. The Asia Business Daily DB·ChatGPT

Signs of Population Rebound...Experiment to Counter Local Extinction

Population changes are also noteworthy. According to county data, there were 272 new residents in September last year, but after the pilot project was confirmed in October last year, the number jumped to 629. This represents an increase of 357 people (about 131%) in just one month—the largest increase since 2007.

Based on this data analysis, the county plans to expand essential business sectors in rural areas where merchant infrastructure is insufficient and to implement a step-by-step roadmap without delay. A county official stated, "This analysis proves that basic income for rural areas is a powerful economic policy that promotes a virtuous local economy, beyond simple welfare," adding, "We will complete a sustainable public model to respond to the risk of local extinction."

This content was produced with the assistance of AI translation services.