South Korea’s namhae funds basic income to boost local economy
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Namhae County in South Korea distributed 38.6 billion won (approximately $28.3 million USD) in basic income to its rural residents as of July. Residents spent 29.4 billion won of that amount, a high usage rate of 76.1%. Officials expect the program to further stimulate the local economy during the upcoming Chuseok holiday, a major harvest festival.
The county, the only area in Gyeongnam province to pilot a rural basic income program, saw most spending occur at businesses that serve daily life. Restaurants accounted for the largest portion of spending at 26.3%, followed by convenience stores, supermarkets, and health care providers. Over time, residents began spending the monthly 150,000 won payments on leisure and cultural activities in addition to essential goods.
County officials believe the basic income acts as a catalyst for economic circulation in the rural area, and they anticipate the Chuseok holiday will strengthen this effect. They hope increased spending during the festival will revitalize traditional markets, strengthen community bonds, and encourage residents to shop locally instead of using larger retailers or online stores.
However, they also noted that at least five years of data are needed to fully understand the program’s long-term effects on population changes and regional sustainability.
