KakaoBank has launched a “hometown love donation” service ahead of year-end tax settlement, allowing users to receive tax deductions and return gifts such as regional specialty products. It enables users to check return gifts by local government in the app and complete donation payments.

KakaoBank said on Monday it introduced the service with partner Wello.

The hometown love donation scheme offers tax deductions and return gifts when people donate to a local government outside their current address. Donating 100,000 won qualifies for a full tax deduction, and a return gift worth 30,000 won, or 30 percent of the donation, is also provided. Starting this year, a 44 percent tax deduction rate applies to donations above 100,000 won up to 200,000 won.

In the KakaoBank app, users can view return gift information for local governments nationwide and choose the gift they want. Donation payments are linked to KakaoBank’s tax and public fee payment service, while Wello oversees overall service operations.

KakaoBank has also prepared a launch event. It plans to provide, on a first-come, first-served basis, 100,000 customers who donate at least 100,000 won through the scheme by Dec. 31 this year with a 10,000 won Naver Pay voucher or a limited-edition 2027 Chunsik diary.

A KakaoBank official said it is a service that allows users to secure tax deduction benefits during the year-end tax settlement season and also contribute to revitalising local economies.