Hometown Love Donation Q1 Fundraising Drops 16.4% Year-on-Year to 15.3 Billion Won

First-quarter fundraising for the Hometown Love Donation program totaled 15.3 billion won, marking the first decrease compared to the same period last year since the program's inception, down 16.4%. This is the first decline recorded on a first-quarter basis since the program's introduction in 2023, with the total amount raised falling by 3 billion won from 18.3 billion won in the first quarter of last year.

The Hometown Love Donation program allows individuals to donate to local governments outside their registered address, receiving tax deductions and local specialty product benefits. A full tax deduction applies to donations up to 100,000 won, while donations exceeding 100,000 won up to 200,000 won receive a 44% deduction, and amounts over 200,000 won are subject to a 16.5% deduction. Local specialty products equivalent to 30% of the donation amount are also provided.

Lawmaker Park Jeong-hyun identified the delay in implementing an increase to the tax deduction amount for Hometown Love Donations as a primary reason for the Q1 fundraising decline. He criticized the lack of discussion on raising the full tax deduction to invigorate the program, noting that donations of 100,000 won or less accounted for 98% of all donations last year. Park analyzed the current fundraising drop not as an issue of donation willingness, but as a consequence of delayed pledge fulfillment.

He urged the government to complete legislative amendments, permit corporate donations, and formalize private platforms within the year, acknowledging the Q1 fundraising decrease.