Growing Threat of Regional Extinction Sparks Calls to Boost Hometown Donation System

[Anchor]

As the Hometown Love Donation System marks its fourth year since its introduction to help alleviate the worsening regional disparities, growing calls are emerging for institutional improvements, such as expanding full tax deductions to vitalize donations.

Reporter Song In-ho has the details.

[Reporter]

This is a general hospital in Yeongju, Gyeongsangbuk-do.

The number of newborns has plummeted to the point where operating the obstetrics and gynecology department is impossible without government and city support.

[Cho Jae-shik / General Manager, Yeongju Christian Hospital: Hospitals are having a very hard time these days. Out of three hospitals of this size in downtown Yeongju, two have closed down. We are barely managing to keep going....]

There are currently 89 cities, counties, and districts managed by the government as population-declining regions, most of which are concentrated outside the capital area.

Local demands are growing to further vitalize the Hometown Love Donation System, which was introduced for balanced regional development.

Donating to regions facing the threat of extinction strengthens local government finances and expands the return-gift industry, leading to the revitalization of local economies.

[Gong Young-min / Mayor of Goheung County, Jeollanam-do and Gwangju Integrated Special City: For places like Goheung with poor financial conditions and low fiscal self-reliance, (hometown love donations) play a huge role as a financial resource...]

At the 2nd Hometown Love Donation Awards ceremony co-hosted by SBS and the Ministry of the Interior and Safety, the need to expand tax deductions to vitalize the system was also raised.

[Bora / Mayor of Anseong, Gyeonggi-do: You get a 100 percent tax deduction only up to 100,000 won (donated). So I think it is important to increase the tax deduction amount to around 200,000 won....]

A bill allowing overseas Koreans to participate in donations is also currently being discussed in the National Assembly.

[Shin Seung-geun / President of the Korea Local Finance Association: Since overseas Koreans cannot receive tax deductions or return gifts when they donate, a bill has been crafted to treat them the same (as domestic residents) so they can receive local love gift certificates when they visit their motherland.]

Following last year, tax accountants nationwide are stepping up again this year to promote the system.

[Goo Jae-yi / President of the Korea Association of Certified Public Tax Accountants: (For 3 million small and medium-sized enterprises and small business owners), we will promote it as a system that can receive deductions as necessary expenses during the closing period, and well inform the 20 million wage earners that they can receive (hometown love) donation deductions during year-end tax settlements....]

The Ministry of the Interior and Safety plans to pursue institutional improvements, such as further expanding tax deductions and allowing corporate donations, to increase the amount raised through the Hometown Love Donation System.

(VJ : Kim Hyung-jin, Video Editing : Mingyu Jeon)
※ Please note: This article was translated by AI and may contain errors.