South Korea Establishes Mechanism to Support Local Governments in Addressing Low Birth Rate

A new ⁣mechanism has been established to support local governments‍ in⁢ South Korea that‍ are actively addressing the low birth rate⁤ issue. ⁤The Ministry ‍of the Interior and​ Safety has decided to allocate a portion of the real estate grant tax to⁢ support local⁢ governments’ efforts in responding to the low birth rate crisis.

The decision was made during the ‘2024 Local Finance ‌Strategy Meeting’ ‌held at Daegu EXCO on September 23, chaired by Vice Minister Ko Gi-dong. ‍The meeting emphasized the need​ for focused investment in addressing the low birth rate and local extinction crisis, fostering​ the people’s ‍economy, and strategic industries.

The real estate grant tax is a local⁢ grant tax, and 25% of the budget (1 trillion won) will be allocated to support low⁢ birth rate response projects. The current allocation criteria will be revised to include ‌a new ⁤item ⁤on ‘low birth rate response’, replacing regional education and ‍reducing the ‍proportion of social welfare.

In ⁤addition to supporting local governments’ ​efforts​ in addressing the⁤ low birth‍ rate crisis,​ the government will also review measures to establish a demand for the resident population and reform the method of reflecting local government⁤ efforts for events​ and festivals. This aims to enable local governments ‍to utilize events and‍ festivals as a means of revitalizing‍ the local economy.

Local governments will ⁢also be given ⁣more autonomy in reviewing and judging the feasibility of local finance investment projects. The scope⁣ of self-review for ⁣cultural and⁢ sports facilities ​and ‌new building construction‌ projects will be expanded, and‍ only projects exceeding 30 billion won ‍will be subject to⁢ central government‍ review.

The government ​plans to ⁣thoroughly manage ⁣illegal business operations ⁣and strengthen the disclosure‍ of information on investment review results by local⁤ governments. The local finance and tax system‌ improvement⁢ plan is expected to be finalized⁤ by ⁤the end of the year ⁣through revisions to related laws and regulations.

Vice Minister of the ‍Interior and​ Safety Ko Ki-dong⁢ emphasized the importance of⁣ sound and efficient local finance‌ management in ‌supporting regional economic recovery and the realization⁢ of the local era.

Key Points:

• A⁤ new mechanism has been established to ‌support local governments in addressing the low ‍birth⁢ rate issue.
• 25% of the real estate ⁤grant tax budget (1 ​trillion won) will be allocated to support low birth rate response projects.
• The current allocation criteria will be⁤ revised to include a new item ​on ‘low birth rate response’.
• Local ‍governments will be given more autonomy in⁤ reviewing and judging the feasibility​ of local finance⁣ investment​ projects.