Gov't to build rural service networks so basic income stays local

The government plans to expand the supply of lifestyle services in rural areas so that the increased purchasing power generated by the rural basic income program translates into local consumption and jobs. The aim is to connect residents with cooperatives, social enterprises and other community organizations that can provide the services they need — keeping basic income circulating within the local economy.

The Ministry of Agriculture, Food and Rural Affairs said Wednesday it will accept applications from cities and counties in rural basic income areas, as well as intermediary support organizations, to participate in a pilot project to activate rural economic and social services. The application period runs through Oct. 2.

The project was designed to expand the supply of lifestyle services in step with the rise in residents' purchasing power brought about by basic income payments. Rather than simply distributing the income, the initiative focuses on building a structure in which residents' spending generates local services and employment.

Selected support organizations will first survey what services residents need but cannot adequately access locally. They will then help residents — through women's associations, volunteer groups and similar bodies — form cooperatives to provide those services directly. Training and consulting will also be offered to existing social enterprises and village enterprises looking to enter new lifestyle service sectors.

The program also aims to develop models in which revenue earned through service provision is reinvested locally. Under this approach, social solidarity economy organizations would channel profits from service delivery back into community needs such as village facility operations and healthy meal programs. Pilot models suited to each area's conditions will be identified and tested.

Selected organizations will receive 50 million won ($37,200) per site from October through next June. The funds may be used for staffing, service demand surveys, cultivating service providers and developing service models.

"It is important to nurture organizations capable of supplying the services communities need," said Jeon Han-young, director general of the Rural Policy Bureau at the Ministry of Agriculture, Food and Rural Affairs. "We will provide support so that basic income can lead to a virtuous cycle that creates new services and jobs within local communities."