[2027 Budget Plan] Basic Income for Rural Areas Expanded from 17 to 35 Counties... National Funding Increased from 40% to 50% to Ease Local Government Burden

2027 Budget Plan

Massive Increase in Funding for Rural Basic Income Pilot Project: 234.1 Billion Won to 1.1658 Trillion Won

Central Government to Inject 200 Billion Won into the Rural Community Cooperation Fund... Total of 700 Billion Won to

The government will significantly expand the target locations for this year’s ‘Rural Basic Income Pilot Project’ from 17 counties to 35. The central government subsidy rate will also be raised from 40% to 50%, reducing the financial burden on local governments.

On September 1, the Ministry of Strategy and Budget announced the ‘2027 Budget Plan’, which includes these measures. To prevent rural depopulation, the government plans to expand the areas included in the rural basic income pilot project, which began this year, and increase the central subsidy rate.

◆Increasing investment to 1.1658 trillion won, expanding target areas and raising the subsidy rate= The Ministry of Agriculture, Food and Rural Affairs has progressively increased the number of areas covered by the rural basic income project. In October last year, seven places—Yeoncheon, Jeongseon, Cheongyang, Sunchang, Shinan, Yeongyang, and Namhae—were selected. Then in December, Okcheon, Jangsu, and Gokseong were added, and from February this year, a local gift certificate worth 150,000 won per person was distributed to residents of a total of 10 locations. With an additional 70.6 billion won secured through a supplementary budget in April, the basic income began being distributed at the end of August to seven more areas: Gurye, Boseong, Hwacheon, Boeun, Jinan, Muju, and Cheongsong. Through a combination of the 2026 main budget (234.1 billion won) and the supplementary budget (70.6 billion won) totaling 304.7 billion won, the basic income scheme currently covers 17 areas.

Next year, the related budget will be increased to 1.1658 trillion won, and the plan is to provide basic income to residents in 35 counties. This represents an increase of 861.1 billion won (282.6%) in budget (including supplementary budget) and 18 additional regions compared with this year. More than half of the 69 counties designated as depopulation areas—specifically, 35—will be receiving rural basic income.

The burden on local governments will be reduced. Currently, 40% of the basic income project costs are subsidized by the central government, while metropolitan and municipal governments each cover 30% of the remaining 60%. Starting next year, the central subsidy rate will rise to 50%, and metropolitan and municipal governments will each provide 25%. This is intended to alleviate the fiscal burden on small cities and counties facing financial constraints.

Next year’s budget for public benefit direct payments for agriculture will be increased to 3.0615 trillion won. The area payment for dry fields, which is currently only 75% of that of rice paddies, will be increased to the same level as rice paddies. Additional components reflecting the demand for eco-friendly and animal welfare practices will also be included.

◆Government to fill the shortfall in rural win-win fund= The government has decided to invest 200 billion won in the rural win-win cooperation fund. Up until now, the fund has relied on voluntary contributions from companies, but the government will now provide direct funding. The rural win-win cooperation fund was introduced in 2017 following a bipartisan and government consensus during the Korea-China Free Trade Agreement (FTA) ratification process. Its purpose is to support the agricultural and fishing industries and rural regions through voluntary corporate contributions that have benefited from the FTA. The goal was to raise a total of 1 trillion won over 10 years by collecting 100 billion won annually, but as of June this year, just about 320 billion won—32% of the target—had actually been raised. The government will address this shortfall with state funds. In 2027, the government will provide an initial 200 billion won, and by 2030 the goal is to supply a total of 700 billion won to reach the 1 trillion won target.

In addition, the government will newly allocate 100 billion won to introduce a collaborative farming package to support scaling up in agriculture, and 20.8 billion won to support demonstration and distribution of physical artificial intelligence (AI)—such as autonomous tractors and transport robots. To innovate agricultural product distribution, 180 billion won will be invested in establishing public logistics centers and public-private distribution corporations. The government is also launching a thrift consumption app (with a budget of 1.1 billion won) to provide consumers with real-time basket price information. Furthermore, by utilizing drones and satellites, the government will enhance the monitoring of agricultural products, strengthen preemptive supply management for key items such as area and shipment adjustment, and introduce a price stabilization system.

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