Effects of Tax Incentive Policies for Land Use on Local Socioeconomic Conditions: A Case of Tax Policies for Urban Regeneration Projects in Republic of Korea

South Korea has implemented several housing urban regeneration projects (URPs) and offers various tax incentives to support these efforts. However, the reality is that there is insufficient empirical evidence to determine whether these incentives have a socioeconomic impact on URPs. The aim of this study is to examine the effects of tax incentives related to urban regeneration projects (URPTAX) on local socioeconomic factors, such as Gross Regional Domestic Product (GRDP), aging housing reduction, and housing prices. Fixed-effect models and cost–benefit analysis methods were employed in the study. The results demonstrate the following outcomes. Firstly, URPTAX positively contributes to an increase in GRDP, a decrease in the proportion of aging housing, and an increase in housing price fluctuations. However, the effectiveness of these effects varies between metropolitan and non-metropolitan areas. Therefore, this study suggests the significance of providing stronger tax incentives for housing URPs in non-metropolitan areas to encourage active projects and foster balanced regional development in South Korea.