Gyeonggi Province to test basic income scheme for farmers

Gyeonggi Provincial Government building located in Suwon, Gyeonggi Province / Courtesy of Gyeonggi Province

By Lee Hyo-jin

The Gyeonggi Provincial Government is planning a test run of a basic income program for local farmers starting next April, according to officials,Tuesday.

The plans will provide periodic cash payments to farmers in the region to support their long-term livelihoods.

The municipal government launched preparations for the trial in June when it designated two institutions, Korea Regional Development Foundation (KRDF) and Nyeoreum, an agricultural policy research institute, to design the scheme and set criteria through which the authorities will designate a suitable town for the experiment.

The province held a meeting with the two organizations on Monday to receive reports on current developments and discuss the details.

During the session, KRDF proposed to give monthly cash handouts to all residents in the designated town for two years in the form of a “regional currency.” The currency would only be valid in traditional markets, eateries or cafes in the area, in order to support small- and medium-sized enterprises (SMEs) and the local economy.

All residents, regardless of age, gender or amount of assets, will be eligible to receive the payments. The recipients will be granted a monthly cash payment of 100,000 won to 500,000 won, depending on their household income.

The authorities also discussed how they plan to choose a town for the trial. They came up with 49 specific indices to measure the quality of life of residents, such as work-life balance, economic stability, mental and physical health and level of happiness.

Based on the discussion, KDRF and Nyeoreum will finalize the details of the experiment by the end of October. The local government will designate one town following preliminary findings, and roll out the trial next April.

“The project will show the socio-economic effects of basic income based on universality, individuality and regularity, which will allow us to measure the feasibility of the policy,” said an official at Gyeonggi Provincial Government.