South Korea’s rural basic income project, a campaign pledge by President Lee Jae Myung, is facing criticism on two fronts: restricted local-currency spending has enabled price increases at rural marts, while financially weak counties are cutting existing welfare programs or assuming additional costs to fund the initiative. The pilot pays 150,000 Korean won monthly to residents of shrinking counties through local gift certificates and operates in 17 counties. Township residents can spend within their township and other rural districts, while rural district residents are mainly restricted to their own district; they also receive a 50,000-won monthly allowance usable at supermarkets, gas stations and convenience stores in townships. Unused balances expire after three months for township residents and six months for rural district residents. In areas with limited commercial infrastructure, local marts can function as monopolies. In Yeoncheon County, one mart doubled the price of 100 sheets of dried laver from 10,000 won to 20,000 won and raised the price of 500 grams of red pepper powder by 60%, from 15,000 won to 24,000 won. The project’s funding is split 40% by the central government, 30% by provinces and 30% by counties, whose average financial independence rate was 9.6% in 2024 versus 48.6% for 243 local governments nationally. The government plans to expand participation to 35 counties next year and raise its central budget from 304.7 billion won to 1.1658 trillion won, despite concerns that cash payments cannot reverse population decline without jobs and commercial infrastructure.