‘Second Home’ Tax Exemption Brings Real Population Influx to ‘4 Cities 3 Villages’
Increased Central Government Funding... Reduced County Budget and Expanded Living Infrastructure
Over 10 Billion KRW in Additional Annual Support for Border Area Development Projects
National Subsidy Rate Raised from 70% to 80%... Gapyeong County’s Own Budget Burden Reduced
Gapyeong County in Gyeonggi Province (Governor Seo Taewon) has been experiencing a quiet transformation over the past three months since it was reviewed and designated as a "border area" during the Cabinet meeting on March 4, 2025.
According to Gapyeong County on June 17, as the county marks its third month since being designated as a "border area," expectations are rising for regional economic revitalization and population influx, thanks to benefits such as the application of the second home tax exemption and expanded national funding. This marks the beginning of a new leap forward for Gapyeong County to escape the risk of population extinction.
The most notable change is the "second home tax exemption" applied to Gapyeong County by the government. Under this system, a household that owns a single residence in the Seoul metropolitan area or elsewhere is still recognized as a single-home owner even if they acquire a weekend home or second house in Gapyeong. As a result, special tax treatments for capital gains tax, comprehensive real estate tax, and property tax are maintained, and a 50% reduction in acquisition tax is also granted for additional homes purchased in Gapyeong.
Gapyeong County expects that this system will increase not only the resident population but also the number of people staying in the area on weekends, thereby contributing to the revitalization of the local economy.
Seo Taewon, Gapyeong County Governor (fourth from left), at the signing ceremony for the joint petition on the designation of border areas held at Sokcho City Hall, Gangwon Province, on December 6, 2023. Provided by Gapyeong County
An official from the county stated, "The '4 Cities 3 Villages' lifestyle, where people live in the city during the week and stay in Gapyeong on weekends, is expected to become more common," adding, "This can have a positive impact on the region's food, accommodation, tourism, and leisure industries overall."
The designation as a border area has also enabled additional financial support from the central government.
Gapyeong County has become eligible for the Ministry of the Interior and Safety's "Border Area Development Support Project" and "Special Situation Area Development Project," and is expected to receive more than 10 billion KRW in national funding annually starting in 2027.
Accordingly, on May 14, Gapyeong County launched a study to establish the "Comprehensive Development Plan for Border Areas," outlining development strategies through 2050, and is identifying projects across all sectors, including transportation, welfare, environment, and tourism.
Seo Taewon County Governor (left) is receiving signatures from residents in the border area during the 'All-Citizen Signature Campaign' conducted in 2024. Provided by Gapyeong County
Gapyeong County has applied for ten major projects, including: the expansion and paving of rural roads in Buk-myeon, Jojong-myeon, and Seorak-myeon (18.8 billion KRW); expansion of parking lots and ancillary facilities at Gapyeong Memorial Park (1.3 billion KRW); and construction of welfare facilities for the elderly in the Jojong area (3.9 billion KRW).
In addition, due to its designation as a border area, the central government subsidy rate for Gapyeong County has been raised from 70% to 80%, reducing the county's fiscal burden. The budget thus secured can be reinvested in areas essential to residents' daily lives, such as welfare and improvements to living conditions.
In particular, the designation as a border area is expected to significantly increase the local allocation tax.
With the newly applied weighting for underdeveloped (border) areas, Gapyeong County is expected to receive an additional 8.7 billion KRW in ordinary allocation tax in 2026. This serves as an important financial foundation that can strengthen the county's medium- and long-term administrative capabilities, going beyond simple national funding support.
A Gapyeong County official stated, "The designation of Gapyeong County as a border area has wide-ranging ripple effects, including securing additional government funding, tax benefits, improvement of living infrastructure, and a substantial increase in the actual population," adding, "Although it is still in the early stages, as various projects associated with the border area designation bring about tangible changes in residents' lives, the impact will become even more pronounced."
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