The government has decided to increase the number of areas experiencing population decline and areas of interest with incentives starting next year, along with the population decline response fund. Accordingly, up to 16 areas recognized for effectively utilizing the fund and 4 areas of interest can receive incentives.
The Ministry of Interior and Safety announced on the 19th that it has prepared improvement plans for the population decline response fund for the year 2026.
The population decline response fund was introduced in 2022 to support areas facing population extinction crises. It will provide 1 trillion won annually to 89 areas experiencing population decline and 18 areas of interest until 2031. The fund is managed and operated by a regional co-prosperity development fund association composed of 17 provincial governments.
The Ministry of Interior and Safety plans to expand the regions eligible for receiving additional incentives along with the basic fund distributed by region starting next year. Previously, the fund allocated 7.2 billion won to 87 regions, and 8 additional regions were selected based on project performance to receive an extra 8.8 billion won. Starting next year, an additional 8 regions will be eligible for these incentives.
In addition, up to 4 of the 18 areas of interest experiencing population decline will receive incentives. Previously, the fund distributed 1.8 billion won to each region in addition to providing extra support of 2.2 billion won to only 2 areas.
The government plans to use surplus funds generated from the operation of the regional co-prosperity development fund association to provide incentives.
Additionally, the government will promote a plan to reduce allocations for regions that have not properly utilized the funds received. If the fund execution rate is below the minimum standard or if projects not aligned with the fund's purpose are pursued, they will reduce support funds through a review process.
The Ministry of Interior and Safety plans to finalize the distribution amount of next year's population decline response fund, which incorporates the improvement plan, during October to November of this year.
Deputy Minister Kim Min-jae said, "We will do our utmost to ensure that the population decline response fund, through results-oriented management, can provide practical help in overcoming the crises of regional extinction and low birth rates."