South Korea adopts index giving more support to areas farther from Seoul
In short
The Ministry of the Interior and Safety said a cabinet meeting on 20 October approved a decree amendment creating a "local preference index". It takes in distance from Seoul, regional socioeconomic indicators and population-decline risk, and sorts 229 local governments into four zones for use in policies from next year.
Read the full story 3 min read
The Ministry of the Interior and Safety said on 20 October that a cabinet meeting had approved an amendment to the enforcement decree of the special act on local autonomy, decentralisation and balanced regional development. The amendment sets out how a "local preference index" is calculated and used. Minister Yun Ho-jung said the ministry had for the first time prepared an index to support regions more heavily in order to overcome the single-centre system around the Seoul area. [ 1 , 2 , 3 , 4 , 6 ]
According to the reports, the index takes into account distance from Seoul, regional socioeconomic indicators and the risk of regional extinction from population decline. The formula includes population growth, total fertility rate, ageing index, share of old housing, public transport share, share of basic livelihood recipients, change in business and worker numbers, economic activity rate, gross regional product, land price change and fiscal independence. Newsis and Chosun Ilbo said the socioeconomic part draws on 44 balanced-development indicators prepared by the Local Era Commission, and that population-decline areas get extra preference. [ 1 , 2 , 4 , 6 ]
Newsis said distance is measured by geographic information system between Seoul City Hall and each district office, and that distance and socioeconomic indicators are weighted 1 to 0.5. The outlet said this was chosen because using distance alone could leave out places near Seoul with low development, such as northern Gyeonggi and Gangwon border areas. Local governments are ranked by index value, with the top 25% in zone 1, the next 25% in zone 2 and the rest in zone 3. Population-decline areas move down one zone, and Newsis said all 61 places in zone 4 are population-decline areas. [ 5 ]
The 229 local governments are placed in four zones, with 58, 55, 55 and 61 places from zone 1, which has the least need for preferential treatment, to zone 4. Index values and rankings will not be published, to prevent stigma for relatively underdeveloped areas and excessive competition between regions. Kyunghyang Shinmun reported that all 25 Seoul districts are in zone 1, as are 9 of Incheon's 11 districts, and 24 of Gyeonggi's 31 places. Newsis also named Dongducheon, Yeoncheon and Gapyeong in Gyeonggi as zone 3. [ 1 , 4 , 5 , 6 ]
As an example, the ministry currently sets the central-government share of regional love voucher funding at 3% for the Seoul area, 5% elsewhere and 7% for population-decline areas. From next year it will be 3% for zone 1, 6% for zone 2, 8% for zone 3 and 9% for zone 4, so a population-decline area in zone 4 would go from 7% to 9%. Newsis quoted ministry local finance bureau director Jeong Jong-hun (정종훈) as saying the index is reflected in 23 projects in next year's budget proposal, notably the vouchers and the youth jobs leap incentive (청년일자리도약장려금). [ 1 , 4 , 5 , 6 ]
A notice on the detailed calculation and use rules, including each district's zone, is to be published for 12 days from 21 October and then finalised after comment. The ministry plans to help ministries find ways to use the index from next year and to extend it beyond spending to tax, regulation and procurement. Newsis said the amended decree requires heads of central agencies to make efforts to use the index. [ 2 , 3 , 6 ]
Why it matters
Chosun Ilbo reported that the index is meant to replace support criteria that differed by ministry and project, so central-government aid would be tiered by zone from next year. The ministry said it expects ministries to use it beyond spending programmes, in tax, regulation and procurement.
Key facts
- The cabinet meeting on 20 October approved an amendment to the enforcement decree of the special act on local autonomy, decentralisation and balanced regional development, which sets out the local preference index, the Ministry of the Interior and Safety said. [ 1 , 2 , 3 , 4 , 6 ]
- The index combines distance from Seoul, regional socioeconomic indicators and the risk of regional extinction from population decline. [ 1 , 2 , 3 , 4 ]
- It divides 229 local governments into four zones: 58 in zone 1, 55 in zone 2, 55 in zone 3 and 61 in zone 4, with zone 1 having the least need for preferential treatment. [ 1 , 4 , 5 , 6 ]
- Index values and rankings will not be published, to avoid stigma for relatively underdeveloped areas and excessive competition between regions. [ 1 , 4 , 6 ]
- From next year the central-government share of funding for regional love vouchers (지역사랑상품권) will be 3% in zone 1, 6% in zone 2, 8% in zone 3 and 9% in zone 4. [ 1 , 4 , 6 ]
- A notice for the detailed rules on how the index is calculated and used is to be published for 12 days from 21 October. [ 2 , 3 , 6 ]
- All 25 districts of Seoul are in zone 1. [ 4 , 5 ]
Confirmed by several sources
- The decree amendment was approved at the cabinet meeting on 20 October, the Ministry of the Interior and Safety said. [ 1 , 2 , 3 , 4 , 5 , 6 ]
- The 229 local governments are split into zones of 58, 55, 55 and 61 places, from least to greatest need for preferential treatment. [ 1 , 4 , 5 , 6 ]
- The central-government funding share for regional love vouchers will change from 3% for the Seoul area, 5% for non-Seoul-area places and 7% for population-decline areas to 3%, 6%, 8% and 9% by zone from next year. [ 1 , 4 , 6 ]
- The detailed rules are to be published for comment for 12 days from 21 October before taking effect. [ 2 , 3 , 6 ]
Still unclear
- Which local governments fall in each zone beyond the examples reported. Index values and rankings are not being published; outlets gave only examples such as Seoul, Incheon and Gyeonggi, and the full zone list is in a notice that is still to be published for comment.
- Whether the final rules will differ from the notice. The detailed rules are to be finalised after the comment period, according to Newsis, CBS NoCut News and Chosun Ilbo.
- How other ministries will use the index. The ministry said it will support ministries in finding ways to use it; only the voucher rate change and 23 projects in next year's budget proposal were described.
What local media are saying
Timeline, local time
- Yonhap published its report on the index. [ 1 ]
- Newsis published its report on the index. [ 2 ]
- CBS NoCut News published its report on the index. [ 3 ]
- Kyunghyang Shinmun published its report, with regional examples. [ 4 ]
- Newsis published an updated report with the 23 budget projects and the zone-assignment method. [ 5 ]
- Chosun Ilbo published its report on the index. [ 6 ]