The Korea Local Finance Association (LOFA) and Chungcheongbuk-do Province held a discussion forum on February 6 at the Chungbuk Research Institute to assess progress made through “Local Extinction Response Fund” projects and address current challenges.
The forum was attended by LOFA Chairman Jeong Seon Yong and officials responsible for population decline initiatives across Chungcheongbuk-do Province. Following presentations of outstanding local government achievements, LOFA's Regional Vitality Support Team explained the evaluation framework for the 2027 fund investment plan and gathered feedback on implementation difficulties.
Participants then visited fund-supported sites in Goesan County. The first was the Jangnyeon-myeon Mountain Village Youth Entrepreneurship Special Zone, which was created from an abandoned school to promote youth-led community businesses as a sustainable mountain village model. Later, they inspected Sosu-myeon Youth Rental Housing, a program that provides affordable housing to young people living in or planning to move to Goesan County. Chairman Jeong met directly with site operators to assess the fund's regional economic revitalization impact and pledged to incorporate field insights into fund management policy.
As the Local Extinction Response Fund enters its fifth year of operation, this forum was designed to pursue qualitative growth in fund management beyond simple achievement sharing. LOFA representatives conducted Q&A sessions with local government officials about the expansion of program-based projects intended to provide substantial population inflow, as well as changes to fund operations.
"For the Local Extinction Response Fund to become a practical solution tailored to regional characteristics, continuous communication with those out in the field is essential," Chairman Jeong emphasized. "LOFA will continue to provide full support as a reliable partner to local governments, ensuring the fund is deployed effectively to serve as a catalyst for the Local Era."
The Local Extinction Response Fund, introduced in 2022 to support responses to population decline and regional extinction risks, provides approximately 1 trillion won annually to 107 basic-level municipalities in population-declining areas (89) and areas of concern (18), plus 13 metropolitan governments excluding Seoul and Sejong. LOFA, a local finance expert institution, manages and operates the fund on behalf of the Regional Mutual Development Fund Association composed of 17 metropolitan and provincial governments.
The Korea Local Finance Association (KOR, ENG) is a special corporation established in 1964 based on mutual aid principles to address financial difficulties of local governments nationwide and support fiscal soundness. As Korea's only specialized local finance institution, it operates mutual aid programs with local governments as members and performs public financial functions including management of local fiscal support funds and special disaster relief funds.
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(translated by AI, edited by David Kendall)
