Eighteen Population Decline Watch Areas Designated, Including Dongducheon, Gyeongju, and Iksan

Legal Basis for Support Established Through This Year's Law Amendment

Eighteen areas, including Dongducheon in Gyeonggi Province, Gyeongju in North Gyeongsang Province, and Iksan in North Jeolla Province, have been designated as "Population Decline Watch Areas." This year, with the amendment of the law, basic response and implementation plans for these areas have been established, and legal grounds for support have also been put in place.

The Ministry of the Interior and Safety and the Ministry of Trade, Industry and Energy announced on December 30 that, through the "Notice on the Designation of Population Decline Watch Areas" to be issued on December 31, they will designate 18 cities, counties, and districts as Population Decline Watch Areas. These areas are defined as the top 18 regions with the highest population decline index, calculated at the time of the initial designation of population decline areas, excluding those already designated as population decline areas.

The designated areas are: Geumjeong-gu and Jung-gu in Busan; Dong-gu in Incheon; Dong-gu in Gwangju; Daedeok-gu, Dong-gu, and Jung-gu in Daejeon; Dongducheon-si and Pocheon-si in Gyeonggi Province; Gangneung-si, Donghae-si, Sokcho-si, and Inje-gun in Gangwon Province; Iksan-si in North Jeolla Province; Gyeongju-si and Gimcheon-si in North Gyeongsang Province; Sacheon-si and Tongyeong-si in South Gyeongsang Province.

This designation of Population Decline Watch Areas is part of the government’s national agenda to "strengthen support for the revitalization of areas at risk of extinction." Through this designation, the government plans to provide detailed support from the early stages of concern regarding population decline and the risk of local extinction.

Since the initial designation of population decline areas in 2021, the Ministry of the Interior and Safety has allocated 5% of the basic account of the Local Extinction Response Fund to Population Decline Watch Areas. However, unlike population decline areas, which have a legal basis for designation under the "Special Act on Decentralization and Balanced Regional Development," Watch Areas have lacked a legal definition or support regulations, making systematic response difficult.

Accordingly, with the amendment of this act and the "Special Act on Support for Population Decline Areas" in May of this year, legal grounds have been established for the designation and support of Population Decline Watch Areas.

Population Decline Watch Areas may now establish basic response and implementation plans similar to those for population decline areas. In addition, with the expansion of living population data calculation to include Watch Areas, it is expected that local governments will be able to systematically address the risks of population decline and local extinction.

Furthermore, Population Decline Watch Areas may apply for special grants to meet specific financial needs related to the implementation of basic and action plans. Under Article 22 of the "Act on Decentralization and Balanced Regional Development," they will also be eligible for administrative and financial support for matters such as social infrastructure improvement, education, and culture.

In addition, if an individual who owns one home acquires an additional home in a Population Decline Watch Area outside the Seoul metropolitan area, various administrative and financial special measures promoted by relevant ministries, such as the "second home" tax benefit, will apply, including special tax treatments for capital gains tax and comprehensive real estate tax.