One Month Since Implementation of the 'Hometown Love Donation Program'
Positive Feedback on Economic Revitalization Through Hometown Donations
However, Ambiguous Promotion Criteria and Other Areas Need Improvement
As the Hometown Love Donation System marks one month since its implementation, the continuous flow of donations is being recognized as a foundation for hometown development. However, some local governments express frustration over unclear standards for donation use projects and publicity, as well as the inability to disclose how much has been collected.
Many Celebrities and Politicians Participate
The Hometown Love Donation System allows individuals to donate up to 5 million KRW annually to local governments other than where they reside. Donors can receive thank-you gifts worth up to 30% of the donation amount, and enjoy tax deductions of 100% up to 100,000 KRW, with a 16.5% tax credit on the excess amount. For example, if one donates 1 million KRW, they can receive a tax credit of 248,000 KRW, which includes 100,000 KRW plus 16.5% of the remaining 900,000 KRW (148,000 KRW).
So far, politicians, celebrities, and famous sports players have joined the Hometown Love Donation System, earning it a reputation for success. Son Heung-min donated the maximum annual amount of 5 million KRW to his hometown, Chuncheon in Gangwon Province, while actor Lee Moon-sik contributed 5 million KRW to his hometown, Sunchang-gun in Jeonbuk Province. Additionally, PD Na Young-seok and actor Yoo Hae-jin each generously donated 5 million KRW to Chungbuk Province.
Former and current presidents, members of the National Assembly, and heads of organizations are also participating. President Yoon Suk-yeol donated 300,000 KRW each to 16 cities and provinces excluding Seoul, totaling 4.8 million KRW, demonstrating his commitment to national balanced development. Former President Moon Jae-in donated 5 million KRW to his hometown Geoje.
Local governments are responding to donors' interest by sending local love gift certificates and regional specialties as thank-you gifts. Currently, donations and thank-you gifts can be applied for through the Hometown Love e-um website.
Donation Amounts and Thank-You Gifts Are All 'Confidential'
The popularity of the Hometown Love Donation System is increasing daily, but the actual number of donors and amounts collected remain confidential. The Ministry of the Interior and Safety warned that active encouragement or solicitation of donations could lead to excessive competition among local governments, potentially resulting in restrictions on fundraising and acceptance. Consequently, local governments do not disclose the number of donations, total amounts raised, or the proportion of high-value thank-you gifts provided.
However, without clear regulations on the extent of permissible publicity, local governments face difficulties. To supplement poor local finances and revitalize regional economies, active promotion of the Hometown Love Donation System is necessary, but regulations prohibit direct promotion by alumni associations or hometown groups. Some local governments have therefore enlisted famous celebrities and implemented methods such as attaching promotional labels to flagship products.
Moreover, it remains uncertain where and how the collected donations will be used. Donors contribute without knowing the actual usage. Hometown Love donations can only be used for socially vulnerable groups, youth-related projects, culture, arts, healthcare sectors, community revitalization, and residents' welfare. However, local governments have been unable to determine donation amounts and thus have not finalized usage plans. They have stated plans to confirm donation use projects in the second half of this year and to begin spending the funds collected this year starting in the first half of next year.
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