Exploring the possibility of introducing a “two addresses per person” system to cope with the risk of regional extinction: A proposal for a special case tailored to Jeonbuk focusing on resolving regional fiscal imbalances

□ The special pilot project on the “two addresses per person” system (the System) must be examined to address the risk of regional extinction.

◯ The project will serve as a multi-purpose policy tool for resolving regional imbalances and addressing the risk of regional extinction by 1) facilitating de facto population inflow through incentives related to sub-address registration and 2) utilizing sub-addresses as a basis for financial resource allocation to promote local governments’ fiscal stability.

◯  It is imperative that policy scenarios be thoroughly reviewed to derive a phased approach. Therefore, we propose how to navigate a Jeonbuk-specific pilot project while highlighting the need for inter-local government solidarity and collaboration to resolve fiscal imbalances between the Seoul Capital Area and non-metropolitan areas. 

□ “Residents’ rights” and “residents’ responsibilities” will be considered as design elements of the System.

◯ Residents’ rights, representing the System’s incentives, can be divided into civil rights (equal access to public facilities and services) and political rights (suffrage and the ability to participate in the political life of the society and state).

◯ Residents’ responsibilities, representing the System’s disincentives, include various taxes, expenses, and fees. 

□ Six policy alternatives have been derived based on a combination of residents’ 1.1.  rights and responsibilities. We suggest three measures for allocating financial resources among local governments when residents are taxed.

◯  Considering residents’ acceptance of policies, we propose a “civil rights/no tax” option (few rights and responsibilities) as the initial plan for the special pilot project. 

◯ When residents are taxed, the following measures can be employed to allocate financial resources: utilizing the basis for calculating grant tax, standardizing tax contributions between the main address and sub-address, and determining the contribution ratio reflecting the period of residence

□  Effective policy implementation requires well-thought-out planning and navigation of the Jeonbuk-tailored pilot project and solidarity among local  governments.

◯ Given the region-specific nature of the project, Jeonbuk Self-Governing Province, which is at risk of regional extinction, must leverage a high level of autonomy to preemptively undertake the pilot project to ascertain its validity and effectiveness.

◯ Jeonbuk is advised to proactively seek solidarity and cooperation with special autonomous cities and provinces, depopulation areas, and megaregions to minimize fiscal conflict among local governments and address fiscal imbalances between the Seoul Capital Area and non-metropolitan areas. 

● DOWNLOAD REPORT (PDF, Korean)​​