South Korea’s rural basic income project, a campaign pledge by President Lee Jae Myung, is facing criticism because financially weak counties are cutting existing welfare programs or taking on additional debt to fund payments. The initiative targets counties with shrinking populations and distributes monthly local gift certificates worth 150,000 Korean won to all residents. Seventeen counties are participating in the pilot, with payments beginning in late February in 10 counties and seven more added last month. Funding is split 40% from the central government, 30% from provincial governments and 30% from counties, most of which have among the lowest financial independence rates nationwide. In 2024, the selected counties’ average financial independence rate was 9.6%, compared with 48.6% for 243 local governments nationally. The government plans to expand the program to 35 counties next year and increase its central budget from 304.7 billion won to 1.1658 trillion won. Critics also question whether cash payments can reverse population decline without jobs and commercial infrastructure, citing a pilot area in Yeoncheon whose population later fell below its pre-policy level.