Kakao Bank launches hometown donation service ahead of year-end tax season

Kakao Bank has launched a partnership service for the hometown love donation system, allowing customers to browse regional gift items and make donations directly through the app ahead of the year-end tax filing season.

The hometown love donation system lets individuals donate to local governments outside their registered address and receive regional specialty products as gifts worth up to 30 percent of the donated amount, along with tax deductions. Donations of up to 100,000 won ($74) qualify for a full tax deduction, and starting this year, amounts between 100,000 won and 200,000 won are eligible for a 44 percent deduction rate.

Customers can browse gift items from local governments nationwide through the "Get regional specialties and prepare for year-end tax filing" section under the "All" tab in the Kakao Bank app. Selecting a desired gift links directly to Kakao Bank's tax and utility payment service to complete the donation. The design guides customers from choosing a regional product through to completing the payment, lowering the barrier for those unfamiliar with charitable giving.

Partner company Wello will operate the service. It marks the two companies' second collaboration, following the "Government support finder" service they launched together in September last year. That service helps customers identify government and public institution subsidies they are eligible to receive, and had surpassed 1.3 million cumulative subscribers as of late October this year.

Kakao Bank is also running a launch promotion. The first 100,000 customers who donate 100,000 won or more through the service by year-end will receive either a 10,000-won Naver Pay voucher or a 2027 limited-edition Chunsik diary.

Kakao Bank said the service was designed "to help customers take advantage of tax deduction benefits during the year-end tax filing season while also contributing to the revitalization of local economies," adding that it would continue to expand lifestyle benefits available to customers.