Rep. Lee Gae-ho's Proposed 'Hometown Love Donation Act' Passed by the National Assembly

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] Lee Gae-ho, a member of the National Assembly (Democratic Party of Korea·Damyang Hampyeong Yeonggwang Jangseong), introduced the "Act on Hometown Love Donations" as the first bill of the 21st National Assembly, which passed the National Assembly's Public Administration and Security Committee on the 22nd.

Known as the so-called Hometown Tax Act, this bill was proposed to allow local governments to recruit and receive "hometown love donations" in order to supplement poor local finances and revitalize the local economy.

The purpose is to have local governments use the received donations for regional development purposes such as improving residents' welfare, thereby contributing to balanced regional development.

In addition, donors who contribute to local governments can receive tax reduction benefits as well as additional gifts such as local specialties and free admission to tourist attractions, which is expected to have a positive effect on revitalizing the rural economy.

In particular, it is expected to have a significant effect in fostering a healthy donation culture for hometowns, promoting patriotism, and increasing tax revenue for financially struggling local governments.

The Act on Hometown Love Donations was initially proposed by Assemblyman Lee in the 20th National Assembly in 2017 but was discarded due to expiration of the term while pending in the Public Administration and Security Committee.

The "Act on Hometown Love Donations," which passed the Public Administration and Security Committee, will be finalized after review by the Legislation and Judiciary Committee and approval by the plenary session.

Assemblyman Lee said, "Our country faces serious economic and social disparities between large cities and local areas, and the concentration of economically active populations in large cities has deepened the tax revenue gap between local governments, making the crisis of local extinction a reality. If the Hometown Love Donations Act, which allows donations to local governments, is passed, it will help supplement poor local finances and contribute to national balanced development. We will do our best to ensure it passes the National Assembly plenary session as soon as possible."