Mayor Park Hyung-duk: "Depopulation Area Designation an Opportunity to Improve Lives and Revitalize the Local Economy"

Dongducheon Newly Designated as a Depopulation Area
Lays Groundwork for Up to 12 Billion Won in Annual Support
Tax Benefits for Housing and Businesses Take Effect
Linked to Projects to Improve Jobs, Housing, and Transportation

Dongducheon City in Gyeonggi Province, led by Mayor Park Hyung-duk, has been newly designated as a depopulation area, paving the way for it to receive up to 12 billion won annually from the Local Extinction Response Fund. The city said on October 26 that it plans to improve living conditions and attract businesses and new residents by using expanded financial support and tax benefits related to housing and businesses.

Dongducheon City Newly Designated as a Population Decline Area. Provided by Dongducheon City.

On October 7, the Ministry of the Interior and Safety redesignated the depopulation areas, adding Dongducheon City, Geumjeong-gu in Busan, and Tongyeong City in South Gyeongsang Province. This was the first redesignation in five years since the areas were initially designated in 2021, increasing the nationwide total from 89 to 92.

With the new designation, Dongducheon City, previously classified as an area of concern for population decline, will be eligible for a wider range of Local Extinction Response Fund support. The annual funding limit for areas of concern is up to 3 billion won. However, designated depopulation areas can receive 6 billion won in 2027 and up to 12 billion won annually from 2028, depending on evaluation results. The actual amount of support will be determined based on factors including project plans and evaluation results.

The city plans to identify projects in employment, housing, education, and tourism to secure funding. It will also review preferential eligibility criteria for depopulation areas in central government grant programs to expand its opportunities to secure national funding.

Tax benefits related to housing and businesses have been available since October 20, in accordance with the relevant implementation guidelines. In the housing sector, those who meet certain requirements may qualify for benefits related to capital gains tax and comprehensive real estate tax on second homes, as well as a reduction in acquisition tax for first-time homebuyers.

In the business sector, reductions in acquisition and property taxes may be available to companies that launch businesses, establish or relocate workplaces, and move into industrial complexes. Companies that meet requirements such as hiring new local residents may also qualify for tax credits against corporate local income tax. However, they must meet requirements set out in individual laws, including those concerning housing prices, the number of homes, and business types. Some forms of support will also require follow-up procedures, such as the enactment of local ordinances.

Dongducheon City Newly Designated as a Population Decline Area. Courtesy of Dongducheon City.

The city is also pursuing expanded support for childcare and local consumption. It is checking with the relevant ministries on when and how to implement a policy that would increase the monthly child allowance for children living in depopulation areas from 100,000 won to 110,000 won. It is also considering providing an additional 10,000 won per month if the allowance is paid in local love gift certificates.

The city plans to confirm the scale and timing of support for local love gift certificates in line with the government's expanded issuance support criteria. It expects that raising the gift certificate incentive from 8% to 12%, if implemented, would help boost local consumption and revitalize neighborhood businesses.

Dongducheon City plans to link government support with local projects, focusing on the four strategies, 14 action tasks, and 51 detailed projects in its 2027-2031 master plan for responding to depopulation. The city aims to expand its employment base by promoting a defense industry innovation cluster linked to the national industrial complex, attracting businesses, and developing young entrepreneurial talent.

In transportation, the city is also pursuing an extension of GTX-C to Dongducheon and expansion of the metropolitan transport network. In education, it plans to improve local educational conditions by boosting operations at its hub-style Global Talent Education Center and offering tailored education programs. In tourism, it aims to increase visitors' length of stay and local spending by combining stay-based tourism projects with existing attractions, including Soyo Mountain and the natural recreation forest.

Dongducheon City Newly Designated as a Depopulation Area. Courtesy of Dongducheon City.

Dongducheon Mayor Park Hyung-duk said, "Designation as a depopulation area is an opportunity to improve residents' lives and broaden the foundation for regional development by using government financial support and various special benefits. We will carefully prepare the necessary projects so that the expanded support can lead to better living conditions for residents and a more vibrant local economy."

He added, "It is important to create a city where residents can build stable lives in Dongducheon, young people can find jobs and settle down, and more people come to visit and stay. We will drive regional development that residents can feel by bringing change to areas closely connected to daily life, starting with industry, transportation, education, and housing."

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