On the 6th, North Gyeongsang's Yeongdeok, Uiseong, and Andong were found to be the regions that received the most hometown love donations in the first half of this year. These areas suffered wildfire damage in Mar. The hometown love donation program allows individuals to donate to a region where they do not live and receive a tax credit and thank-you gifts. The government is aiming to raise a total of 100 billion won this year, the third year of the program.
◇ Yeongdeok, North Gyeongsang, ranks No. 1 in first-half fundraising this year… Damyang, South Jeolla, in the first year; Jeju last year
The total amount raised by the hometown love donation program in the first half of this year was 34.9 billion won, up 75% from the same period last year. On an annual basis, 65.1 billion won was raised in 2023, the first year of the program, and 87.9 billion won was raised last year.
The top five regions that raised the most donations in the first half of this year were ▲ Yeongdeok, North Gyeongsang (2.427 billion won) ▲ Uiseong County, North Gyeongsang (2.23 billion won) ▲ Andong City, North Gyeongsang (1.608 billion won) ▲ Jeju (1.385 billion won) ▲ Busan (1.052 billion won).
Last year, Jeju ranked first with 3.593 billion won. Earlier, the region that raised the most in 2023 was Damyang, South Jeolla (2.302 billion won).
The funds collected are used for local residents. They are used to support socially vulnerable groups and to promote culture, arts, and health. There is also the effect of tax revenues concentrated in large cities being transferred to the provinces by residents' choice.
◇ Six out of 10 donors are in their 30s and 40s… Most popular thank-you gifts are local currencies
Gyeonggi had the largest number of donors at 50,204. It was followed by Seoul (42,822). In contrast, regions with the most donors relative to population were South Jeolla, Sejong, and North Jeolla, in that order.
By age, people in their 30s (29.3%) and 40s (28.1%) accounted for 57.4%. They were followed by people in their 50s (26.8%), 20s (9.8%), and 60s and older (5.9%). The average donation per person was 129,000 won.
Of all donors, 63.6% chose local currencies, such as local gift certificates and pay, as thank-you gifts. Donors can choose to receive local specialties provided by local governments, such as pork belly and apples, or local currencies. According to the private hometown love donation platform "WeGive" (wegive), Daejeon's Sungsimdang bread or Sungsimdang gift certificates have recently become popular as well.
To boost the hometown love donation program, the government is pushing measures such as allowing corporations to donate and expanding tax credit benefits. Currently, only individuals can donate up to 20 million won per year. In addition, donations up to 100,000 won are fully eligible for a tax credit, and 16.5% of the amount exceeding that can be credited. The Ministry of Economy and Finance recently said it plans to apply a 40% tax credit rate to donations between 100,000 and 200,000 won.