This Year’s Regional Revitalization Investment Fund Set at 200 Billion Won... Number of Investment Institutions Doubled

Undisbursed Parent Fund Amount Last Year: 277.2 Billion Won
Actual Investment Capacity This Year Reaches 477.2 Billion Won

This year, the Regional Revitalization Investment Fund will be established with a total size of 200 billion won. The number of parent fund investment institutions participating from this year will increase from three to six. The proportion of project investments in areas with declining populations will be raised from one-third to one-half.

On January 7, the Planning and Budget Office announced the "2026 Operational Plan for the Regional Revitalization Investment Fund," which includes these measures.

Signboard of the Planning and Budget Office at the Government Sejong Complex. Photo by Yonhap News

The Planning and Budget Office has decided to significantly restructure this year's Regional Revitalization Investment Fund to continuously provide investment resources to regions struggling with population decline and weakened industrial bases, and to strengthen the public sector's role as a catalyst in areas where private investment is difficult to attract.

First, the investment institutions will be diversified to reinforce the foundation for regional revitalization investment. This year, the number of participating institutions in the Regional Revitalization Investment Fund will increase to six, adding three new investment institutions-namely, the Ministry of Culture, Sports and Tourism (Tourism Promotion and Development Fund) and other public organizations-to the existing three parent fund investment institutions (government finances, the Local Extinction Response Fund, and Korea Development Bank). The total investment from the new institutions is expected to be around 50 billion won.

To effectively address local extinction, the Planning and Budget Office will raise the proportion of investments in projects located in areas with declining populations or designated as priority regions from one-third to one-half. In addition, separate investment ratios will be set for tourism and marine infrastructure sectors, as requested by new investment institutions, in order to expand strategic investments that utilize regional natural and cultural resources. The office aims to lay the foundation for the region's medium- to long-term growth.

This year, the Regional Revitalization Investment Fund will be created with a total of 200 billion won. Taking into account the 277.2 billion won from last year's parent fund (with a two-year investment period) that has not yet been used, the actual investment capacity for this year amounts to 477.2 billion won. Following consultations with new investment institutions, this year's parent fund is scheduled to launch in April. Subsequently, projects tailored to the conditions of each region will be identified and invested in.

The Planning and Budget Office stated, "We will also strengthen support for local governments to ensure tangible results from the Regional Revitalization Investment Fund." The office added, "We will enhance the local government roadshows and practical consultations with investment institutions conducted last year, providing advanced training and consulting for local governments. We will also continue to organize opportunities for meetings among fund managers, investment institutions, and local governments to ensure robust fund management."