Japan’s Policy Response to Population Decline: Relocation Support, Hometown Tax, and Policy Lessons for Korea

Abstract

We examine some examples of policy responses to population decline in Japan, where the demographic trend began earlier than in Korea, and consider policy options relevant to the Korean context. Specifically, our discussion covers the current state of population decline in Japan and corresponding responses that emphasize childcare support and ‘regional revitalization’, as well as such locally driven efforts as the relocation support program and ‘hometown tax’ scheme implemented in Miyakonojo City (Miyazaki Prefecture) and Tottori Prefecture’s initiative that links local businesses with urban job seekers. Japan’s diverse policy responses offer meaningful implications for Korea, a country where, as in Japan, population decline and aging are a growing national concern. Japan’s experiences with related legislative frameworks, localized practical solutions, and interventions aimed at engaging the business sector provide valuable insights that merit attention from policymakers in Korea. From our observations of the Japanese cases, we derive several takeaways for Korea: improve and systematically manage the Hometown Love Donation Program on a continued basis so that it can achieve its intended policy outcomes; enhance policy efficacy by promoting public-private collaboration; adopt locally led, integrated strategies; and strengthen local policy capacity.