🚨 Population Decline Areas

Today Korean Social News for Beginners | 2025.08.25

0️⃣ Special City Exclusion Controversy and Regional Extinction Response Policy Equity Issues

📌 Changwon Special City: "Exclusion from Population Decline Areas is Reverse Discrimination"…Calls for System Improvement

💬 Changwon Special City has requested the government to expand population decline area designations and strengthen authority to respond to regional extinction crisis. Under current balanced development law, administrative districts of special cities are excluded from population decline areas, but Jeju Special Self-Governing Province allows administrative cities to be designated, raising equity controversy. Changwon City is actually experiencing population decline and aging problems but cannot receive regional extinction response fund support due to system limitations. The city is also pushing for transportation infrastructure expansion and cultural facility attraction while calling for system improvements, and discussions on policy equity based on local governments' administrative status are expected to become more active.

💡 Summary

• Population decline areas are regions where population decreases above certain standards, receiving government financial support and policy priorities.
• Changwon Special City is excluded from population decline area designation and cannot receive regional extinction response policy benefits.
• Jeju Special Self-Governing Province can designate administrative cities, creating system equity controversy.

1️⃣ Definition

Population decline areas are regions where population decreases above certain standards that the government officially designates to provide financial support and policy priorities. This policy was introduced to prevent regional extinction caused by declining birth rates and youth outflow, providing special support and benefits to designated areas.

Under the Special Act on Decentralization and Balanced National Development (Balanced Development Act), areas are designated based on population decline rates over the past 20 years exceeding certain levels or high elderly population ratios over 65. This is a national response system to prevent not just population decline but the collapse of regional economies and social foundations.

💡 Why is this important?

• It's a national policy tool to respond to regional extinction crisis.
• Designated areas can receive special financial support like regional extinction response funds.
• Priority targets for improving living conditions including transportation, housing, and jobs.
• A core system for balanced regional development and sustainable national land development.

2️⃣ Current System Problems and Designation Standards

📕 Population Decline Area Designation Standards and Limitations

• Designation is decided based on multiple standards. Main criteria include:

  • Areas with population decline rates of 20% or more over the past 20 years are basic targets.
  • Areas with elderly population ratios of 30% or more (over 65) are also included.
  • Population density, financial independence, and business decline rates are comprehensively considered.
  • Designated by city, county, and district units, but autonomous districts of special cities and metropolitan cities are excluded in principle.

• System exclusion problems for special cities are occurring. Main situations include:

  • Administrative districts of special cities like Changwon Special City are excluded from designation targets.
  • Despite actually experiencing population decline and aging, they cannot receive support.
  • Jeju Special Self-Governing Province has exception rules allowing administrative cities like Jeju City and Seogwipo City to be designated.
  • This creates discrimination based on administrative status even in the same population decline situations.

📕 Regional Extinction Crisis Reality and Response Necessity

• Nationwide population decline is intensifying. Main situations include:

  • As of 2023, about 40% of the nation's 228 cities, counties, and districts were designated as population decline areas.
  • Not only rural areas but some small and medium cities are experiencing population decline.
  • Youth concentration in the capital region and low birth rate aging are progressing simultaneously.
  • Complex problems occur including regional economic decline, commercial area deterioration, and educational facility reduction.

• Problems are revealed through Changwon City's specific case. Main situations include:

  • Some districts of Changwon City actually meet population decline and aging standards.
  • However, they are excluded from population decline area designation just because they belong to a special city.
  • This shows problems with uniform standard application that doesn't match regional realities.
  • They are also excluded from substantial benefits like regional extinction response funds and transportation infrastructure support.

💡 Main Limitations of Population Decline Area System

1. Administrative Status-Centered Judgment: Prioritizing administrative area types over actual population decline situations
2. Equity Issues: Double standards applying exceptions to Jeju Special Self-Governing Province while excluding special cities
3. Uniform Standards: Uniform application that doesn't sufficiently reflect regional characteristics and realities
4. Policy Blind Spots: Problems where areas actually needing support are excluded due to system constraints
5. Support System Rigidity: Structure unable to flexibly respond to changing regional realities

3️⃣ System Improvement Plans and Expected Effects

✅ Government and Local Government Improvement Efforts

• Legal amendments for system equity are needed. Main improvement directions include:

  • Legal amendments including special city administrative districts as population decline area designation targets are being considered.
  • Standards based on actual population decline situations rather than administrative status are needed.
  • Expanding exception rules for equity with Jeju Special Self-Governing Province is being discussed.
  • Introducing flexible designation standards that can reflect regional characteristics is required.

• Changwon City's active response efforts are ongoing. Main activities include:

  • Continuously submitting proposals and policy suggestions for system improvement to the government.
  • Promoting self-directed living condition improvement projects like transportation infrastructure expansion and cultural facility attraction.
  • Showing movements to jointly demand system improvements in solidarity with other special cities.
  • Making political efforts for related legal amendments in cooperation with regional National Assembly members.

✅ Expected Effects of System Improvements

• The effectiveness of balanced regional development policies will increase. Main effects include:

  • All regions actually experiencing population decline can receive appropriate support.
  • The utilization and efficiency of regional extinction response funds are expected to improve significantly.
  • Can contribute to resolving regional imbalances and balanced national land development.
  • Living condition improvements for youth settlement in regions will be conducted more systematically.

• Will also have positive impacts on local autonomy system development. Main changes include:

  • Policy communication between central and local governments will become more active.
  • Sets a precedent where local governments' policy proposals and improvement demands lead to actual system improvements.
  • A fairer local autonomy environment will be created by resolving discrimination based on administrative status.
  • Customized policy development and application matching regional realities are expected to spread.

4️⃣ Related Terms

🔎 Special Act on Decentralization and Balanced National Development (Balanced Development Act)

• A core law aimed at balanced development between regions.
  • The Balanced Development Act is a special law enacted to promote decentralization and resolve development gaps between regions to achieve balanced national development. First enacted in 2004, it has undergone several amendments to reach the present, serving as the legal basis for regional development policies.
  • Main contents of the law include: First, regulations on population decline area designation standards and procedures. Second, specifications on establishment and operation of regional extinction response funds. Third, regional innovation system construction and regional specialized development plans. Fourth, role division and cooperation systems between central and local governments.
  • Currently, Article 2 of this law and Article 3 of the enforcement decree set population decline area designation standards, and the clause excluding special city administrative districts from designation targets is at the core of the equity controversy. System improvement demands from Changwon City and others aim to amend this part.

🔎 Regional Extinction Response Fund

• A government special financial fund supporting population decline areas.
  • The Regional Extinction Response Fund is a government special fund implemented since 2022 to restore vitality in areas facing extinction crisis due to rapid population decline. It supports only areas designated as population decline areas and is used as financial resources for promoting regional customized policy projects.
  • Main fund support areas include: First, transportation infrastructure improvement including public transportation expansion and road maintenance. Second, industry development and startup support projects for job creation. Third, living condition improvement including residential environment maintenance and cultural/sports facility expansion. Fourth, life service improvement supporting medical, educational, and welfare facility expansion.
  • The fund scale is organized at about 1 trillion won annually, with a total of 5 trillion won planned for investment over 5 years. However, areas not designated as population decline areas cannot utilize this fund, which is one of the main reasons special cities like Changwon demand system improvements.

🔎 Special City

• A special administrative status given to cities with populations over 1 million.
  • A special city is a special administrative status given to large cities with populations over 1 million or cities meeting certain conditions, having expanded authority and functions compared to general cities. Currently, Suwon Special City, Goyang Special City, Yongin Special City, Changwon Special City, and others are designated.
  • Main authorities of special cities include: First, ability to directly handle some affairs equivalent to metropolitan cities. Second, expanded urban planning-related authority for roads, water and sewage systems. Third, educational authority allowing direct consultation with education offices. Fourth, ability to receive more national subsidies compared to general cities.
  • However, special cities are not metropolitan cities, so they face constraints in some policies. Exclusion from population decline area designation is a representative case, where blind spots in policy application occur due to the intermediate nature between metropolitan cities and general cities in the administrative area system. This suggests the need for improvement of the special city system itself along with related legal arrangements.

5️⃣ Frequently Asked Questions (FAQ)

Q: What benefits can you receive if designated as a population decline area?

A: You can receive various government support and policy priorities including regional extinction response funds.

• If designated as a population decline area, you can receive various substantial benefits. First, you can receive hundreds of billions of won in financial support annually from regional extinction response funds to promote transportation infrastructure expansion, job creation, and living condition improvement projects. Second, you receive priority selection benefits in various national subsidy projects, making policy project promotion easier. Third, you receive favorable conditions for development projects and business attraction through deregulation and special exceptions. Fourth, you can receive customized policy support including youth settlement support, return-to-farming programs, and living SOC expansion.
• Also, you become a priority consideration target in central government regional development policies, taking advantageous positions in budget allocation and policy promotion. These benefits are the main reasons Changwon Special City demands population decline area designation.

Q: Why are only special cities excluded from population decline area designation?

A: Due to constraints based on administrative area systems in laws, but there are aspects that don't match reality.

• The reason special cities are excluded from population decline area designation is due to Balanced Development Act and enforcement decree regulations. First, current laws basically have the principle of targeting city and county units while excluding autonomous districts of special cities and metropolitan cities. Second, administrative districts of special cities are classified as similar in nature to metropolitan city autonomous districts, so the same exclusion standards are applied. Third, when the law was enacted, the special city concept wasn't sufficiently established, so detailed distinctions weren't made.
• However, these standards have many aspects that don't match reality. Administrative districts of special cities have larger populations than districts of general cities and have strong independent characteristics, actually having similar characteristics to cities and counties. Also, Jeju Special Self-Governing Province has exceptions allowing administrative cities to be designated, raising equity issues. Therefore, establishing reasonable standards through legal amendments is needed.

Q: How do other countries support population decline areas?

A: Each country responds to regional extinction crisis in various ways, with many providing more comprehensive support than Korea.

• Looking at major developed countries' population decline area support policies: First, Japan promotes the 'Village, People, Jobs Creation Comprehensive Strategy' through regional revitalization policies, providing extensive support through local allocation tax special grants and regional revitalization promotion grants. Second, Germany aims for 'creating equal living conditions' with federal and state governments jointly making long-term concentrated investments in structurally vulnerable areas. Third, France supports economic diversification and living condition improvement in rural areas through rural revitalization contract systems.
• The common point of these countries is selecting support targets based on actual population decline and economic vulnerability rather than administrative area types. Also, they don't stop at short-term financial support but focus on regional capacity building and self-reliance from long-term perspectives. Korea also needs to build more comprehensive and flexible support systems referring to these international trends.

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