[Exclusive] 'Seoul Office Workers Do Not Need to Change Hometown Address'... Considering 1 Person 2 Addresses System Amid Regional Disappearance

Adoption of 'Flexible Residency Activation' in Regulatory Innovation Tasks
Changing Administrative Principles of Single Address System and Relaxing Housing Regulations
Considering Measures like Temporary Address, Secondary Address, and Multiple Address Systems
Voting Possible in Jeju, Local Taxes Payable in Seoul
Expecting Increase in 'Living in Two Areas' like 5-District Relocation and Workation
Need to Prevent Confusion over False Residency, Administrative Waste, and Electoral Representation

The government has begun reviewing a ‘one citizen, two addresses’ plan to promote flexible residency. This is in response to the accelerating phenomenon of regional extinction caused by low birth rates, aging population, and concentration in the Seoul metropolitan area. It is especially expected to reduce the zero-sum game in which local communities fiercely compete to secure residents. However, since this changes the long-standing principle of a single address system, concerns have been raised about potential side effects such as false address registration, administrative waste, and electoral representation, calling for a cautious approach.

According to a comprehensive report by Asia Economy on the 5th, the Regulatory Innovation Promotion Team of the Prime Minister’s Office recently started preparing measures to activate flexible residency. Flexible residency refers to living in various regions as needed, rather than being confined to a single address. The plan includes changing the administrative principle of one citizen, one address (single address system) and allowing individuals to have multiple addresses in various ways. The key is how realistically the abstract concept of ‘dual life (living in two regions)’ can be incorporated into legal systems.

During rush hour, the Gimpo Gold Line station (left), notorious as the "Hell Train" due to overcrowded passengers, and a rural village scene in Hongcheon.

A government official stated, “We are not currently discussing this with a specific timeline in mind,” but added, “It is true that this has been selected as a regulatory innovation task and is being reviewed.” The official also said, “We judged that it is necessary to examine this plan by referring to overseas cases such as Japan.”

Changing the single address administrative principle and making housing regulations more 'flexible'

According to the plan, the government is considering a ‘provisional address’ system. A provisional address is an address that individuals who have moved or plan to move to areas at risk of population extinction can choose. They do not have to completely change their address through moving-in registration, and if they register a provisional address, the government provides various incentives. Through registering a provisional address before moving, they can receive support during the settlement process. This system encourages residence by providing benefits to citizens considering moving to rural areas with low populations.

The introduction of a Second Address system is also being discussed. Under the current system, the address on the resident registration is used for family relations registration and election management, while for taxation and finance, individuals are allowed to choose their preferred address. For example, if someone moves from Jeju Island to Seoul for work, they can have Jeju as their first address and Seoul as their second address. This system is effective when many residents have different registered and actual residences. During general elections, it becomes possible to vote for politicians running in Jeju while paying local taxes in Seoul.

Options for operating a multiple address system are also being examined. If multiple addresses are allowed, individuals can fully hold addresses in two regions within limited scopes and conditions. Eligible groups include workers who suddenly relocated due to public institution transfers, university students attending schools in other regions, soldiers temporarily serving in different areas, and family members who moved residences for caregiving purposes.

Low birth rates and concentration in the metropolitan area... 89 local governments face extinction risk

The government’s move to prepare flexible residency measures is due to rapid low birth rates, aging population, and severe concentration in the metropolitan area. Currently, the baby boomer generation approaching retirement numbers about 17 million, and Korea will enter a super-aged society in 2025. Meanwhile, last year’s total fertility rate was 0.78, the lowest ever recorded, and the lowest level worldwide. As a result, the number of deaths (370,000) significantly exceeds the number of births (250,000) domestically.

Population decline is already rapidly progressing in small local cities. Among the total population of 51.43 million last year, 25.98 million lived in the Seoul metropolitan area (Seoul, Gyeonggi, Incheon), surpassing the non-metropolitan population of 25.45 million. Ten years ago, the non-metropolitan population was 25.81 million, slightly ahead of the metropolitan area by 680,000. Currently, there are officially 89 areas at risk of regional extinction due to population decline. The government has implemented so-called regional revitalization policies such as relocating public institutions and building infrastructure, but these have not been effective. Recently, some regions have even engaged in wasteful competition to secure residents.

Domestic Population Decline Areas. Photo by Ministry of the Interior and Safety

The government expects that flexible residency activation measures will promote lifestyles such as ‘5 days in the city, 2 days in the countryside’ (5do2chon) or workations (Work+Vacation). Professor Cho Young-tae of Seoul National University’s Graduate School of Public Health explained, “If people have two addresses, they will need to establish residences in both regions and expand their activity radius. This is an alternative to consider in a situation where local governments compete to take residents from each other.”

Administrative waste, false address registration, and electoral representation pose obstacles

Similar systems have already been implemented overseas to prevent aging and regional extinction. Germany introduced a multiple address system in 2003, recognizing ‘primary residence’ and ‘secondary residence.’ When registering a secondary residence in another area, residents pay a tax (second residence tax), but rental fees and transportation costs are deductible from income tax. Japan (two-region residence system) and France (secondary residence system) have also introduced multiple address systems.

However, the anticipated side effects are significant. Since two local governments are mobilized for one citizen, administrative resources may be wasted. In some local governments, the actual resident population remains the same, but the statistical population increases, potentially causing difficulties in local fiscal management. It is also necessary to prevent false address registrations exploiting system loopholes and moral hazards where residents seek welfare benefits that differ by local government. Depending on the residency system introduced, issues with electoral representation may arise.

Accordingly, the promotion team plans to review ways to overcome limitations and minimize side effects associated with the system’s introduction. The team intends to proceed with further discussions once the service review is completed by the end of next month.