Gapyeong and Yeoncheon face exclusion from tax benefit expansion

The South Korean government’s proposed 2026 tax reform plan for the ‘Hometown Love Donation System’ has sparked concerns regarding regional discrimination. While the Ministry of the Interior and Safety intends to expand tax credit benefits to combat local population decline, the current proposal excludes population-declining areas located within the Seoul metropolitan area.

Specifically, regions such as Gapyeong and Yeoncheon, which are designated as population-declining areas and serve as critical border and agricultural zones, are set to be excluded from the enhanced tax benefits. Under the new plan, non-metropolitan areas will receive higher tax credit rates for donations exceeding 100,000 KRW, whereas metropolitan areas are expected to maintain current rates. Local officials argue that this exclusion contradicts the goal of balanced regional development, as these metropolitan areas face similar demographic crises as rural provinces.

The Ministry of the Interior and Safety stated that the current plan is not yet finalized and that specific details regarding which of the 243 local governments will receive which level of benefits are still under discussion.