Coverage to expand to half of all eligible rural areas; government to contribute 200 billion won ($145 million) to cooperative fund for first time
Fund has raised 320.7 billion won of its 1 trillion won, 10-year target; government plans 700 billion won in contributions through 2030
The government plans to more than double the number of areas covered by its rural basic income program — from 17 this year to 35 next year — and will for the first time contribute 200 billion won ($145 million) in public funds to the rural cooperative fund, which has fallen far short of its target due to reliance on voluntary corporate donations.
The Ministry of Planning and Budget announced the 2027 budget proposal Tuesday. The government set "responding to K-shaped polarization and achieving growth for all" as a key investment direction, pledging to concentrate fiscal resources on stabilizing livelihoods for vulnerable groups including farmers and fishers, and on locally driven growth. The ministry said it would expand the rural basic income program to 35 areas, roughly half of all eligible regions.
The number of areas covered will rise from 17 this year to 35 next year. The ministry said at a detailed budget briefing that the program targets not all rural areas but the 69 rural cities, counties and districts experiencing population decline. Next year's expansion will bring roughly half of those eligible areas into the program.
Strong demand from local governments drove the decision to significantly widen coverage. Deputy Minister of Planning and Budget Jo Yong-beom said at the briefing that a prior survey of local government interest had found more than 40 municipalities willing to participate. Taking that demand into account, the government decided to expand coverage to roughly half of all eligible areas next year.
The government draws a clear distinction between the rural basic income program and agricultural productivity initiatives. "We need to look at the agricultural budget and the rural budget separately," Jo said, describing the rural basic income as "not a budget to save farming, but a budget to save rural communities that are losing their populations."
The rural cooperative fund will receive government fiscal support for the first time. The fund was established with a goal of raising 1 trillion won over 10 years — 100 billion won annually from 2017 to 2026 — to support the farming and fishing industries hurt by market liberalization. Relying solely on voluntary corporate contributions, however, the fund had raised only 320.7 billion won as of June, well short of its target. Of that amount, 274 billion won has been disbursed.
The government plans to contribute approximately 700 billion won — the shortfall from the original target — on a temporary basis through 2030, with 200 billion won reflected in next year's budget proposal as a first installment. The funds may be used for joint cooperative projects covering rural education and scholarships, welfare improvement, regional development and revitalization, and the production, distribution and sale of agricultural and fishery products. The government said the money will be invested in rural vitalization projects that local residents want. The projects will be carried out by the Foundation for Cooperation of Large and Small & Medium Enterprises and Agriculture and Fisheries, and the government will also pursue amendments to relevant laws to enable the temporary contributions.
The government's first contribution to the rural cooperative fund was also included among the ministry's "100 New Projects for 2027." The ministry said the 200 billion won allocation next year marks the first time the government has directly contributed to the fund to support rural revitalization.
adastra@heraldcorp.com
