Yeongyang County (Governor Oh Dochang) announced on January 19 that, following the revision of the Restriction of Special Taxation Act, the tax credit benefits for donations made through the Hometown Love Donation Program have been significantly expanded as of January 1, 2026.
The Hometown Love Donation Program allows individuals to donate to local governments other than their place of residence and receive tax credits and return gifts in exchange. Participation is available through the 'Hometown Love e-Eum' website or at National Agricultural Cooperative Federation (Nonghyup) branches nationwide.
The core of this system reform is the increase in the tax credit rate for donations in the 'over 100,000 won and up to 200,000 won' range, from the previous 16.5% to 44% (including local taxes), in order to encourage more donations. Previously, donations up to 100,000 won were fully deductible, while only 16.5% of the amount exceeding 100,000 won was eligible for a tax credit. However, starting this year, a high tax credit rate of 44% applies to amounts exceeding 100,000 won and up to 200,000 won, reducing the burden on donors and increasing their benefits.
For example, if a donor contributes 200,000 won to Yeongyang County, the previous tax credit would have been 116,500 won (100,000 won + 16,500 won). From this year, the total tax credit benefit increases to 144,000 won (100,000 won + 44,000 won). Adding the return gift benefit, which is provided up to 30% of the donation amount (60,000 won), a donor receives a total benefit worth 204,000 won for a 200,000 won donation. This means that the 'sweet spot' where the benefits exceed the original donation amount has expanded, and participation from small-scale donors is expected to increase.
Taking advantage of this expanded tax benefit, Yeongyang County plans to actively promote local specialties such as Yeongyang red pepper powder and wild vegetables, as well as a variety of other agricultural, forestry products, and processed goods as return gifts. The county also intends to accelerate the discovery of new fund projects to ensure that donations are effectively used to enhance the welfare of local residents and revitalize the local economy.
Kim Minkyeong, Head of the Finance Division, stated, "With the expansion of the tax credit benefits, we expect that more people will express their hometown love for Yeongyang County," adding, "We will use your valuable donations transparently and wisely for the welfare of our residents and the development of the region."
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