A Study on Relationship between the Cultural Budget and Local Policy Orientation

Abstract

South Korea's challenges of low birth rates and an aging population are progressing at the fastest pace compared to other countries, leading to significant societal issues due to rapid demographic changes. These problems are particularly severe at the regional level. To mitigate regional extinction, it is crucial to develop specific funding utilization strategies tailored to the conditions of region to enhance competitiveness. As population issues intensify, local governments are actively investing in the cultural sector to secure regional competitiveness. This study aims to analyze how cultural budget varies according to the characteristics of local governments with the assumption that local policy decision-makers allocate funds reasonably. We collected data on cultural budget, population, geography, and economic characteristics of 226 local governments nationwide. and empirically verified that policy orientation in cultural policy varies according to regional characteristics. The results showed that local governments located in the metropolitan area with a relatively low population decline rate had a higher culture budget allocation for welfare, while local governments located in provinces with a higher population decline rate had a higher budget allocation for development such as tourism and cultural heritage. Additionally, regions with a higher proportion of cultural arts budget showed a higher quality of life, while local governments with higher budget allocation for tourism had a statistically estimated correlation with residents' income. We hope that the results of this study provide valuable insights for understanding the cultural policies of regions facing a population crisis.