Korea, which is experiencing rapidly declining birth rates and population aging, has seen its working age population decline since 2016 and is now facing a demographic cliff, which puts at risk the very existence of many of its regions.

A report by the Korea Employment Information Service (2016) forecasts that 84 out of 228 Sis/Guns/Gus (37%) and 1,383 out of 3,482 Eups/Myeons/Dongs (40%) will disappear within three decades due to population outflows, low birth rates, and population aging.

While the government has so far established and implemented balanced development strategies at the national level, there has been a lack of policy considerations for declining populations in rural agricultural or fishing villages.

In this context, this Act aims to prepare comprehensive measures at the national level to mitigate regional population outflows and increase population inflows by legislating a special law to support those Regions at Risk of Population Decline and improve conditions to boost the residents’ quality of life. 

Details

A. Boost local economies and contribute to balanced, nationwide development by improving residential conditions and increasing residents’ quality of life in Regions at Risk of Population Decline (Article 1).

B. Apply this Act to those Regions at Risk of Population Decline designated hereunder (Article 3).

C. Require the head of a Si/Gun/Gu and a Mayor/Do Governor to establish and implement the Population Disappearing Risk Region Support Plan every 5 years, the Minister of the Interior and Safety to establish and implement a master plan to support Population Disappearing Risk Regions every 5 years by reflecting local governments’ support plans to improve residential conditions and increase residents’ quality of life in Regions at Risk of Population Decline (Articles 7 and 8).

D. Require the head of a central administrative agency to establish and implement a plan to support Regions at Risk of Population Decline under their competence every year and the head of a Si/Gun/Gu and a Mayor/Do Governor to establish and implement the plan under the master plan and central administrative agencies’ implementation plans (Article 10).

E. Place the Regions at Risk of Population Decline Support Committee under the President and the Population Disappearing Risk Region Support Regional Committee under the head of a Si/Gun/Gu and a Mayor/Do Governor to review matters required to improve residential conditions and increase residents’ quality of life in Regions at Risk of Population Decline (Articles 11 and 12).

F. Allow the Minister of the Interior and Safety to designate Population Disappearing Risk Regions based on population decline rates, demographic structure by age and gender, and financial condition indices in consultation with the head of any relevant central administrative agency and remove the designation of Regions at Risk of Population Decline if such regions are considered to have met the designated purposes or be incapable of meeting the purposes (Article 14).

G. Allow the central and local governments to nurture professionals in relevant fields to efficiently respond to demographic changes in Regions at Risk of Population Decline and run a center that integrates and provides migration information to support those who want to move to Regions at Risk of Population Decline (Articles 16 and 17).

H. Allow the State to exempt corporate tax for small and medium-sized enterprises located in Regions at Risk of Population Decline and support some part of National Health Insurance premiums for such employers (Article 18).

I. Allow the central and local governments to put in place special cases to expand road networks, designate industrial complexes, create schools, and establish cultural facilities in Regions at Risk of Population Decline, provide funding to improve educational conditions, and establish local hub medical schools and their affiliated general hospitals to build healthcare infrastructure (Articles 19 to 24).

J. Increase the rate of government subsidies for projects implemented by local governments in Regions at Risk of Population Decline, exempt such projects from a preliminary feasibility survey, and establish special accounting to facilitate the State’s funding for Regions at Risk of Population Decline (Articles 25 and 27).

Designate the ex officio members of the Regions at Risk of Population Decline Support Committee as the Minister of Strategy and Finance, the Minister of Education, the Minister of the Interior and Safety, the Minister of Culture, Sports and Tourism, the Minister of Agriculture, Food and Rural Affairs, the Minister of Trade, Industry and Energy, the Minister of Health and Welfare, the Minister of Employment and Labor, the Minister of Land, Infrastructure and Transport, the Minister of Oceans and Fisheries, the Minister of SMEs and Startups, the Chief of Staff of the Prime Minister's Secretariat, and the head of other central administrative agencies prescribed by Presidential Decree (Article 11).