DONGDUCHEON — Dongducheon in Gyeonggi Province has secured fresh momentum for revival after being newly designated a "depopulation area," a status that sharply increases central government funding and brings tax breaks for housing and businesses along with expanded welfare benefits.
The Ministry of the Interior and Safety redesignated the country's depopulation areas on the 7th, adding three new localities including Dongducheon, Busan's Geumjeong District and Tongyeong in South Gyeongsang Province, the city said on the 22nd. The move expands the nationwide total to 92 from 89. Dongducheon was upgraded from a "population decline watch area," placing it under a stronger government support framework.
The most striking change is the expansion of financial support. The annual ceiling for the regional extinction response fund, previously capped at 3 billion won ($2.1 million), rises to 6 billion won in 2027 and up to 12 billion won from 2028, depending on project evaluations. The city also gains extra points in central government funding competitions, giving it an edge in securing state money.
Tax incentives aimed at drawing private investment took effect on the 20th. Under the measures, homeowners who buy an additional home in Dongducheon qualify for "second home" treatment, exempting them from heavier capital gains and comprehensive real estate tax rates. Acquisition tax cuts for first-time home buyers are also being widened.
For businesses, the package includes acquisition and property tax reductions for startups, companies relocating facilities and firms moving into industrial complexes, as well as local income tax credits for corporations that add jobs.
Welfare benefits tied directly to residents' daily lives will also grow. The child allowance rises to 110,000 won a month from 100,000 won, with additional support under review when paid through local gift certificates. If expanded state funding lifts the issuance incentive for local gift certificates to 12% from 8%, the city expects a double benefit: stronger neighborhood commerce and lighter pressure on municipal finances.
The city plans to tie the programs closely to four strategies and 51 detailed projects laid out in its 2027-2031 basic plan for responding to population decline. Work will accelerate across industry, transport, education and tourism, including a defense industry innovation cluster linked to a national industrial complex, an extension of the GTX-C express rail line to Dongducheon, a hub-type global talent education center and stay-oriented tourism infrastructure at Mount Soyo.
The strategy draws on the city's position as a border municipality that has long borne military restrictions for the sake of national security, aiming to build a sustainable growth base that increases not only the resident population but also the broader "living population" of people who spend time in the city.
"This designation goes beyond a simple change in administrative classification. It is a decisive opportunity to change residents' lives and improve the city's underlying condition through the funding and institutional exceptions we have secured," Mayor Park Hyung-duk said. "We will create change that people can feel across industry, transport and housing, and complete a city where young people settle and people gather."