This study examines strategies to improve the operational framework of South Korea’s Local Extinction Response Fund through a comprarative analysis of policies in Japan, France, Germany, and the United States. These countries have adopted distinct a...
This study examines strategies to improve the operational framework of South Korea’s Local Extinction Response Fund through a comprarative analysis of policies in Japan, France, Germany, and the United States. These countries have adopted distinct approaches to address regional population decline and economic deterioration. Japan prioritizes decentralization and youth settlement through performance-based funding and hometown tax donation scheme. France employs tailored programs based on urban scale and regional context, facilitated by contractual partnerships between central and local governments. Germany operates under a decentralized federal system, with coordinated responsibilities and co-financed regional development programs. The United States focuses on economic stimulation using tax incentives, block grants, and public-private partnerships within a distributed administrative structure. In contrast, South Korea’s fund remains highly centralized, with limited local discretion, constrained private sector engagement, and a short-term evaluation model. Based on international practices, this study proposes four directions for reform: (1) institutionalizing multi-level governance to strengthen local autonomy; (2) expanding financial diversity through private investment mechanisms; (3) shifting toward long-term, outcome-based performance assessment; and (4) applying differentiated strategies that reflect regional socio-economic contexts. These recommendations aim to enhance the fund’s sustainability and effectiveness in mitigating local decline and supporting regional regeneration.