As the government nearly doubles the scale of its rural basic income pilot program, the participation rate among local governments has declined. Despite increased national funding, the growing local financial burden has emerged as a significant obstacle to the program's expansion.
According to the Ministry of Agriculture, Food and Rural Affairs, 34 out of 52 eligible counties applied for the 2027 rural basic income pilot program, resulting in an application rate of 65.4% and a competition ratio of 1.9 to 1.
In the first round of applications last year, 49 out of 69 counties applied, achieving a competition ratio of 8.2 to 1. In the second round this year, 44 out of 59 counties applied, raising the competition ratio to 8.8 to 1. The competition ratio has plummeted from over 8 to 1 in the previous two rounds to just 1.9 to 1 in this round.
Even with the new selection expected to increase to around 18 counties, the drop in application rates is notable. Counties interested in participating face challenges if they cannot secure provincial funding, making it difficult to even apply.
In Gyeongbuk, seven out of eight eligible counties submitted applications, excluding Ulleung County. However, the provincial government has only guaranteed funding for one county. It is estimated that approximately 120 billion won would be needed to support all seven counties. Due to financial constraints, only one of the smallest counties will receive support, with an estimated provincial funding requirement of about 13.2 billion won.
Similarly, all nine eligible counties in Gyeongnam expressed interest in applying, but the province recommended only Sancheong County. This decision was based on the assessment that selecting all nine would exceed 190 billion won in annual provincial funding. Gyeongnam has requested that the national funding rate be increased to over 80%.
The government has included a plan in next year's budget to raise the national funding rate from 40% to 50%. The remaining 50% will be shared equally between the city and provincial governments and the counties. Even if counties have the capacity to contribute more local funds, they may be restricted from participating if they cannot secure provincial funding.
A Gyeongbuk official stated, "Currently, local governments are required to cover 50% of the project costs, which must be split equally between provincial and county funds. Some counties may have the financial capacity to increase their contributions, but if the province cannot provide the designated amount, participation becomes difficult."
The official added, "If multiple counties are selected simultaneously, the provincial financial burden will inevitably increase. We have urged the government to increase the national funding rate and to allow adjustments in the funding ratios between the province and counties based on their financial conditions."
As local governments face increased financial burdens due to the program's expansion, concerns have arisen about potential cuts to existing welfare programs.
Next year's pilot program for rural basic income will expand from the current 17 counties to approximately 35. The related national budget has been set at 1.1657 trillion won, an increase of 861.06 billion won from this year's revised plan.
The National Assembly Budget Office has analyzed that the population eligible for the program will increase from 521,000 to 1.294 million, resulting in an overall financial burden for local governments increasing by about 2.07 times. There are concerns that funding for existing welfare programs or support for vulnerable groups may be reduced in the process of securing resources for basic income.
A Ministry of Agriculture, Food and Rural Affairs official stated, "When selecting new target areas, we plan to comprehensively consider the financial conditions of local governments, funding strategies, and project implementation plans. We will continue to review measures to alleviate the financial burden on local governments with the National Assembly and financial authorities."
According to the Ministry of Agriculture, Food and Rural Affairs, 34 out of 52 eligible counties applied for the 2027 rural basic income pilot program, resulting in an application rate of 65.4% and a competition ratio of 1.9 to 1.
In the first round of applications last year, 49 out of 69 counties applied, achieving a competition ratio of 8.2 to 1. In the second round this year, 44 out of 59 counties applied, raising the competition ratio to 8.8 to 1. The competition ratio has plummeted from over 8 to 1 in the previous two rounds to just 1.9 to 1 in this round.
Even with the new selection expected to increase to around 18 counties, the drop in application rates is notable. Counties interested in participating face challenges if they cannot secure provincial funding, making it difficult to even apply.
In Gyeongbuk, seven out of eight eligible counties submitted applications, excluding Ulleung County. However, the provincial government has only guaranteed funding for one county. It is estimated that approximately 120 billion won would be needed to support all seven counties. Due to financial constraints, only one of the smallest counties will receive support, with an estimated provincial funding requirement of about 13.2 billion won.
Similarly, all nine eligible counties in Gyeongnam expressed interest in applying, but the province recommended only Sancheong County. This decision was based on the assessment that selecting all nine would exceed 190 billion won in annual provincial funding. Gyeongnam has requested that the national funding rate be increased to over 80%.
The government has included a plan in next year's budget to raise the national funding rate from 40% to 50%. The remaining 50% will be shared equally between the city and provincial governments and the counties. Even if counties have the capacity to contribute more local funds, they may be restricted from participating if they cannot secure provincial funding.
A Gyeongbuk official stated, "Currently, local governments are required to cover 50% of the project costs, which must be split equally between provincial and county funds. Some counties may have the financial capacity to increase their contributions, but if the province cannot provide the designated amount, participation becomes difficult."
The official added, "If multiple counties are selected simultaneously, the provincial financial burden will inevitably increase. We have urged the government to increase the national funding rate and to allow adjustments in the funding ratios between the province and counties based on their financial conditions."
As local governments face increased financial burdens due to the program's expansion, concerns have arisen about potential cuts to existing welfare programs.
Next year's pilot program for rural basic income will expand from the current 17 counties to approximately 35. The related national budget has been set at 1.1657 trillion won, an increase of 861.06 billion won from this year's revised plan.
The National Assembly Budget Office has analyzed that the population eligible for the program will increase from 521,000 to 1.294 million, resulting in an overall financial burden for local governments increasing by about 2.07 times. There are concerns that funding for existing welfare programs or support for vulnerable groups may be reduced in the process of securing resources for basic income.
A Ministry of Agriculture, Food and Rural Affairs official stated, "When selecting new target areas, we plan to comprehensively consider the financial conditions of local governments, funding strategies, and project implementation plans. We will continue to review measures to alleviate the financial burden on local governments with the National Assembly and financial authorities."
* This article has been translated by AI.
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