🚨 Population Decline Concern Area

Today Korean Social News for Beginners | 2026.01.09

0️⃣ Gyeongju City Designation and Local Extinction Response Policy Challenges

📌 Gyeongju City Designated as Population Decline Concern Area... Will Population Decline Continue Despite Increased Support?

💬 Gyeongju City in North Gyeongsang Province has been designated as a Population Decline Concern Area by the government. This allows the city to receive various administrative support including national grant projects, expanded financial support, and tax benefits. Particularly through the 'Second Home' program, people can receive capital gains tax and comprehensive real estate tax reductions when purchasing additional homes in concern areas outside the Seoul metropolitan area. However, the population decline continues due to low birth rates and ongoing migration of young people to the Seoul area. Gyeongju City is pursuing various measures such as expanding marriage and childbirth support, housing subsidies, and youth job creation, but experts point out that short-term, one-time support policies alone cannot fundamentally solve the problem. Voices are growing louder for comprehensive and long-term improvement of living conditions, including creating quality jobs, improving education and healthcare infrastructure, and expanding cultural and leisure facilities.

💡 Summary

• Population Decline Concern Areas are regions at high risk of population decline that receive government support.
• Gyeongju City will receive tax benefits, national funding, and infrastructure expansion through this designation.
• However, fundamental measures are needed as youth outflow continues due to job shortages and inadequate living conditions.

1️⃣ Definition

Population Decline Concern Area refers to local governments that have not yet been included in Population Decline Areas but have high population decline indices indicating significant future risk of population decline, and can receive administrative and financial support from the government similar to Population Decline Areas. The Ministry of the Interior and Safety designates concern areas through comprehensive analysis of population statistics, and these regions receive benefits such as participation in national grant projects, tax reductions, and infrastructure expansion.

The Population Decline Concern Area system established its legal basis through the 2025 revision of the Population Decline Area Act. Previously, only Population Decline Areas were eligible for support, but after the revision, concern areas with high risk of population decline can also receive proactive support to prevent local extinction. The goal is for the government to take the initiative in improving living conditions and enhancing regional competitiveness in areas where population structure is deteriorating due to declining birth rates, aging, and youth outflow.

💡 Why Is This Important?

• Population decline leads to regional economic stagnation, tax revenue decrease, and declining quality of public services.
• When young people leave, aging accelerates and regional vitality weakens.
• Proactive support can prevent decline into Population Decline Areas.
• Essential for balanced regional development and sustainable national growth.

2️⃣ Current Status and Issues of Population Decline Concern Areas

📕 Background of Gyeongju City Designation and Support Content

• Gyeongju City was designated as a concern area due to high population decline index. Key background includes:

  • Gyeongju City's population has been continuously declining over the past 5 years.
  • Migration of young people (ages 20-39) to the Seoul metropolitan area is prominent, and the birth rate is lower than the national average.
  • Regional vitality is declining as the elderly population ratio increases.
  • The Ministry of the Interior and Safety selected Gyeongju City as a concern area through a population decline index combining birth rate, migration, and youth ratio.

• Support content from designation is diverse. Key benefits include:

  • Priority participation in national grant projects, making it advantageous to secure budgets for SOC improvements like roads, water supply, and cultural facilities.
  • Through the Second Home program, single-home owners who purchase additional homes in Gyeongju City can reduce capital gains tax and comprehensive real estate tax burdens.
  • Tax benefits are provided including corporate tax reductions for local business investments and expanded youth startup support.
  • Financial support increases for expanding education, healthcare, and cultural facilities to improve living conditions.

📕 Structural Causes of Population Decline

• Job shortage is the biggest problem. Key status includes:

  • Gyeongju City has a tourism and manufacturing-centered industrial structure with insufficient quality jobs.
  • University graduates move to Daegu, Busan, or the Seoul metropolitan area for employment.
  • Most local companies are small and medium-sized enterprises with lower wages and welfare levels than large corporations.
  • Employment stability is poor and career development opportunities are limited, making it difficult for young people to settle.

• Education and healthcare infrastructure is inadequate. Key problems include:

  • Educational facilities like academies and cultural centers for children are scarce compared to the Seoul metropolitan area.
  • Large hospitals and specialized medical services are limited, requiring travel to nearby cities for serious illness treatment.
  • Insufficient cultural and leisure facilities lead many residents to feel their quality of life is low.
  • This infrastructure shortage is a major reason why younger generations leave the region.

📕 Policy Limitations and Challenges

• Support remains short-term and one-time. Key limitations include:

  • Marriage and childbirth support payments and housing subsidies have temporary effects but are not sustainable.
  • Young people need stable jobs and career development opportunities to settle.
  • Tax benefits alone are insufficient to induce actual relocation or settlement.
  • Without solving structural problems, population may decline again after support ends.

• Competitiveness gaps between regions persist. Key problems include:

  • Seoul metropolitan area concentration continues while provinces become relatively less competitive.
  • Quality differences in living infrastructure like education, healthcare, and culture are strongly felt.
  • Provincial university graduates face limited employment opportunities and eventually move to the Seoul area.
  • When regional economies stagnate, tax revenues decrease, making infrastructure investment more difficult, repeating a vicious cycle.

💡 Key Issues of Population Decline Concern Areas

1. Job Shortage: Continuous youth outflow due to lack of quality jobs
2. Infrastructure Inadequacy: Education, healthcare, and cultural facilities inferior to Seoul metropolitan area
3. Short-term Policies: Focus on one-time support payments, inadequate structural problem resolution
4. Seoul Concentration: Continuing Seoul metropolitan area concentration weakening provincial competitiveness
5. Financial Limitations: Insufficient local government finances making independent investment difficult

3️⃣ Tasks for Fundamental Solutions

✅ Creating Quality Jobs

• Regional industries must be developed and corporate attraction expanded. Key measures include:

  • Concentrate on developing industries suited to regional characteristics to enhance competitiveness.
  • Attract future industries like advanced manufacturing, IT, and bio to create quality jobs.
  • Expand incentives for corporate investment including tax reductions, site provision, and infrastructure support.
  • Strengthen industry-academia cooperation between local universities and companies so young people can find jobs locally.

• Startup ecosystems must be created and youth startups supported. Key tasks include:

  • Expand startup support centers providing one-stop services for startup space, mentoring, and funding.
  • Provide low-interest loans, subsidies, and tax benefits to young entrepreneurs.
  • Create a social atmosphere and systems enabling challenges even after failure.
  • Discover and support startup ideas utilizing local specialties and tourism resources.

✅ Improving Living Conditions

• Education infrastructure must be expanded and quality improved. Key directions include:

  • Secure excellent teachers and diversify education programs to improve education quality.
  • Expand after-school programs and childcare services to reduce child-rearing burdens.
  • Increase lifelong education facilities so adults can continue learning and growing.
  • Strengthen competitiveness of local universities so young people can stay locally for education and employment.

• Healthcare services must be strengthened and accessibility improved. Key tasks include:

  • Attract large hospitals and expand specialized medical staff so serious illnesses can be treated locally.
  • Organize emergency medical systems to enable treatment within golden time.
  • Expand nursing facilities and rehabilitation centers for the elderly population.
  • Introduce new healthcare service models like telemedicine and mobile clinics.

• Cultural and leisure facilities must be expanded and quality of life improved. Key measures include:

  • Expand cultural and leisure infrastructure like performance halls, art galleries, libraries, and sports facilities.
  • Activate local festivals and cultural events to increase resident participation and exchange.
  • Create everyday leisure spaces like parks, walking trails, and cafes.
  • Provide cultural content and leisure activities preferred by young people to increase attractiveness.

✅ Long-term and Comprehensive Strategy

• Central government and local governments must cooperate. Key directions include:

  • Central government must support regions through financial support, deregulation, and institutional improvement.
  • Local governments must establish and implement customized policies suited to regional characteristics.
  • Strengthen cooperation between government ministries and local governments to avoid duplication and increase synergy.
  • Establish long-term vision and roadmap to pursue policies consistently.

• Resident participation and governance must be strengthened. Key tasks include:

  • Expand channels for residents to directly participate in policy formulation and implementation.
  • Build governance with participation from local businesses, universities, and civic groups.
  • Listen to residents' opinions and reflect them in policies to increase tangibility.
  • Discover and spread success cases to apply to other regions.

4️⃣ Related Terms Explained

🔎 Population Decline Area Act

• The Population Decline Area Act is legislation for systematic response to population decline.
  • The official name of the Population Decline Area Act is the 'Special Act on Support for Population Decline Areas', enacted in 2021 to establish a support system with legal basis for regions with serious population decline. The law designates Population Decline Areas and aims for the state and local governments to establish comprehensive plans to prevent population outflow and restore regional vitality.
  • Key contents of the law include: First, designate regions with population decline indices above certain standards as Population Decline Areas. Second, the state provides financial support, tax reductions, and deregulation to Population Decline Areas. Third, local governments must establish and implement comprehensive plans responding to population decline. Fourth, prioritize support for projects improving living conditions like housing, education, healthcare, and culture.
  • Through 2025 revision, Population Decline Concern Areas also gained legal basis. Concern areas are regions not yet included in Population Decline Areas but at high risk, with the purpose of preventing decline into Population Decline Areas through proactive support. This enabled more regions to receive government support and strengthened national response to local extinction risks.

🔎 Population Decline Index

• The population decline index is an indicator comprehensively showing the degree of regional population decline.
  • The population decline index is a statistical indicator calculated by the Ministry of the Interior and Safety, evaluating regional population decline risk by comprehensively considering various population statistics including birth rate, mortality rate, migration, youth ratio, and aging rate. Higher indices mean more serious population decline or greater risk.
  • Key elements of index calculation include: First, lower total fertility rates increase future population decline risk. Second, low youth ratio (ages 20-39) reduces regional vitality and accelerates aging. Third, more outmigration than inmigration causes net population loss. Fourth, high elderly population ratio increases mortality and reduces working-age population.
  • The government uses this index to designate Population Decline Areas and Concern Areas. If the index exceeds certain standards, it's classified as a Population Decline Area; if below standards but at high risk, it's classified as a Concern Area. This enables objective and scientific evidence-based policy support and is used to prepare customized measures by region.

🔎 Second Home Program

• The Second Home program is a policy reducing tax burden when purchasing provincial homes.
  • The Second Home program is a tax support system alleviating capital gains tax and comprehensive real estate tax burdens for single-home owners who additionally purchase homes in Population Decline Areas or Concern Areas outside the Seoul metropolitan area. It was introduced to ease Seoul concentration and disperse population to provinces.
  • Key contents of the program include: First, people with one home in the Seoul metropolitan area who additionally purchase homes in Population Decline Areas or Concern Areas don't become temporary dual-home owners. Second, they are excluded from capital gains tax heavy taxation targets, greatly reducing tax burden. Third, they are also excluded from comprehensive real estate tax combined taxation, reducing tax burden. Fourth, this aims to increase demand for purchasing provincial homes for weekend homes, rural return preparation, or investment purposes.
  • The program can have positive effects on activating provincial real estate markets and expanding settled population. However, there are concerns about misuse for investment rather than actual residence, so experts point out the need for supplementary measures like strengthening residence requirements for certain periods or imposing resale restrictions. To increase program effectiveness, improving living conditions like transportation, healthcare, and education along with tax benefits is important.

🔎 Decentralization and Balanced Development Act

• The Decentralization and Balanced Development Act is legislation for resolving regional imbalances.
  • The official names of the Decentralization and Balanced Development Act are the 'Special Act on National Balanced Development' and 'Special Act on Decentralization and Reorganization of Local Administrative Systems', providing a legal framework to ease central concentration administrative structures and resolve regional imbalances so all regions can develop evenly.
  • Key contents of the law include: First, transfer central government authority and resources to provinces to increase local government autonomy. Second, establish the National Balanced Development Committee to oversee balanced development policies. Third, provide financial support and tax benefits to underdeveloped and population decline regions. Fourth, support construction of regional infrastructure like industrial complexes, SOC, and education/healthcare facilities.
  • Through revision including population decline response policies, Population Decline Concern Areas also entered the scope of balanced development support. This is an institutional device to strengthen regional self-reliance foundations and promote sustainable development, a core of national strategy to narrow gaps between Seoul metropolitan area and provinces and achieve balanced national growth.

5️⃣ Frequently Asked Questions (FAQ)

Q: What benefits can actually be received when designated as a Population Decline Concern Area?

A: Various benefits including national funding, tax reductions, and infrastructure expansion can be received.

• When designated as a Population Decline Concern Area, financial support from the state expands. Specifically, priority participation is possible in national grant projects for SOC improvements like roads, water supply, and public facilities, with higher selection probability. Budgets for expanding education, healthcare, and cultural facilities also increase, enabling improvement of living conditions.
• Tax benefits are also provided. Through the Second Home program, single-home owners who additionally purchase homes in the region can reduce capital gains tax and comprehensive real estate tax burdens. Benefits like corporate tax reductions and acquisition tax reductions are available when companies invest. Subsidies and low-interest loans supporting youth startups are also expanded. These benefits can have positive effects on regional economic activation and population inflow.

Q: Why is population declining even in tourist cities like Gyeongju City?

A: Because tourism industry alone cannot create sufficient quality jobs.

• Although Gyeongju City is a world-class tourist city, the tourism industry is mainly service-centered with strong seasonality and many low-wage jobs. Quality jobs desired by university-graduate youth - stable, high-wage jobs with career development opportunities - are scarce. During tourist seasons, short-term jobs increase but employment becomes unstable in off-seasons.
• Additionally, education and healthcare infrastructure is insufficient compared to the Seoul metropolitan area or large cities. Educational facilities like academies and programs for children are limited, and specialized medical services often require travel to Daegu or Busan. Cultural and leisure facilities also struggle to meet young people's expectations. These reasons work together so that despite being a tourist city, young people leave and population declines.

Q: What policies are most important to prevent population decline?

A: Creating quality jobs and improving living conditions must occur simultaneously.

• The most important policy to prevent population decline is creating quality jobs. For young people to stay and settle in regions, stable, high-wage jobs with a future are necessary. Comprehensive job strategies are essential including developing regional industries, attracting advanced companies, and creating startup ecosystems. Strengthen industry-academia cooperation between local universities and companies so graduates can find employment locally immediately after graduation.
• Simultaneously, improving living conditions is also important. No matter how many jobs exist, if education, healthcare, and cultural infrastructure are insufficient, settling as families is difficult. Quality of life increases and desire to stay in the region grows when excellent educational environments, quality medical services, and abundant cultural/leisure facilities are available. Short-term policies like marriage and childbirth support payments also help, but fundamentally, sustainable population increase is only possible when the two pillars of jobs and living conditions improve together.

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