NAFI

September 24, In-depth Policy Discussion on Regional Finance and Fiscal Policies to Address Local Extinction

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The National Assembly Futures Institute (President: Kim Kisik) held an in-depth policy discussion titled “Exploring Regional Finance and Fiscal Policies to Overcome Local Extinction” on September 24 at 2:30 p.m. in Small Conference Room 2 of the National Assembly Members’ Office Building. The event was organized as part of the 2025 National Assembly Legislative Fair (September 23–24), co-hosted with the National Assembly Advisory Committee on Local Extinction Response (Chairperson Kang Hyunsoo) and the Presidential Committee for Decentralization and Balanced Development (Chairperson Kim Kyoungsoo).

In his congratulatory remarks, National Assembly Speaker Woo Wonshik stated, “As financial concentration in the Seoul metropolitan area deepens, problems such as low birth rates and local extinction are worsening,” and proposed “the creation of a ‘Regional Reinvestment Act’—a sort of strategic dam for the regional economy—to ensure that wealth generated in local areas is reinvested back into those same communities.”

Professor Jung Seseun of Chungnam National University delivered a presentation titled “Policy Measures to Strengthen Regional Finance for Revitalizing Local Economies.” She argued that to secure diversity within the financial ecosystem, the government should provide preferential regulatory support for regionally based financial institutions. In return, these institutions should actively contribute to local economic projects and establish a virtuous cycle of reinvesting profits within their communities.

Specifically, Professor Jung proposed:

– reflecting major financial institutions’ regional reinvestment performance in management evaluations and offering related incentives;

– expanding and mandating the inclusion of regional reinvestment assessments in the selection process for local government and education office treasuries;

– establishing a Korean-style regional reinvestment fund; and

– creating regional investment corporations.

During the discussion moderated by Kang Hyunsoo, Chairperson of the Advisory Committee on Local Extinction Response, participants—including Floor Leader Chun Haram (Reform Party), National Assembly Member Jang Chulmin (Trade, Industry, Energy, SMEs and Startups Committee), Lee Sunhwa (Senior Research Fellow at the National Assembly Futures Institute), representatives from the financial sector, members of the Presidential Committee for Decentralization and Balanced Development, and journalists—engaged in an active exchange of views on financial and fiscal policy measures to overcome local extinction.

In addition to the panelists, the discussion was joined by National Assembly Member Chun Haram and Jang Chulmin, Min Byungdoo (Chair of the National Assembly Legislative Fair Organizing Committee), and the Director General of the National Assembly Research Service, among other experts from the National Assembly and related fields.​