Government to provide W6.1b in special local allocation tax to boost regional tourism

The government will provide 6.1 billion won ($4.49 million) in special local allocation tax to local governments selected through a regional tourism innovation competition called "Rising Star of Korean Tourism."

South Korea's Ministry of Interior and Safety and Ministry of Culture, Sports and Tourism announced Monday that they have finalized the fiscal incentives to be awarded to local governments chosen through the competition.

The contest marks the first project of the Regional Tourism Policy Council, a joint body the two ministries launched in July with director-general-level officials from each ministry serving as co-chairs. The council was established on the shared recognition that tourism is a key driver of regional economic revitalization.

A total of 13 local governments will be selected — one grand prize winner and two excellence award winners among metropolitan governments (three in total), and one grand prize winner, two excellence award winners and seven merit award winners among basic local governments (10 in total). Special local allocation tax will be distributed on a tiered basis according to award level.

Local governments nationwide may apply in one of four categories: tourism product innovation, tourism spending promotion, tourism trust restoration and tourism income villages.

Applications are open through Oct. 20, with judging running from late October through early December and an awards ceremony scheduled for December.

Song Gyeong-ju, director general of the Interior Ministry's Local Finance and Economy Bureau, said the fiscal incentives would serve as a catalyst for turning innovative regional tourism ideas into meaningful policies for economic revitalization. "We hope that as these ideas are realized, regions will transform into places people want to visit and stay — bringing local economies back to life and filling them with energy," Song said.