"From lodging coupons to more transport services: government to boost domestic demand in line with holiday travel needs"

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[The Financial News] In response to concerns that consumption could slow amid the prolonged Middle East war, the government unveiled measures to stimulate domestic demand by combining eco-friendly consumption with tourism. The plan centers on expanding green consumption week to lift spending sentiment and boosting local consumption through regional and eco-friendly festivals.
\r\n At the 18th State Council of South Korea meeting on the 28th, the government announced the
'Eco-Friendly Green Consumption and Tourism Boom-Up Plan.'
It said preemptive action is needed to prevent the recent recovery in consumption from losing momentum despite rising global oil prices and unstable energy supply.
 The government said it will first use the energy crisis as an opportunity to expand eco-friendly consumption. Following Climate Week, held from April 20 to 24, it will launch the 'Green Consumption for All' campaign and hold Green Consumption Week in June to build momentum for eco-friendly spending. It will also run an event that doubles Carbon Neutral Point System rewards and offer additional discounts on Local Love Gift Certificates to buyers of energy-efficient products.
\r\n It will also push to expand electric vehicle adoption and encourage greater use of public transportation.
\r\n The government plans to allocate a supplementary budget to expand subsidies for electric passenger cars and small electric cargo vehicles. It will also prepare support measures to help public vehicles and delivery trucks switch to electric models.
\r\n The 'Everyone Card,' a transit rebate card, will see eased usage requirements and higher rebate rates during staggered commuting hours.
 Measures to boost regional consumption were also included.
\r\n K-Shopping Festa will be held as a regional and eco-friendly festival, while the discount rate for Digital Onnuri Gift Certificates will be temporarily raised from 7% to 10%. Agricultural, livestock and fisheries products will be sold at discounts of up to 50% from May to June, and authorities will strengthen inspections of unfair practices to prevent prices from staying abnormally high if the international situation stabilizes after the war.
 In tourism, the government is targeting demand during the May holiday period and the summer vacation season. Rail services will add 64 trips and 33,000 seats during the holiday period, while airlines will increase flights on 20 routes by 2,580.
\r\n An additional 300,000 lodging coupons will be provided to depopulated areas, with the plan linked to the 'Korea Accommodation Sale Festa' in June and July. The government has also urged central and local government bodies and public institutions to actively take annual leave and travel domestically in May, while ordering early payment of civil servants' leave compensation.
 Measures to attract foreign tourists were also included. The government will hold 'MyK Festa' in June and operate tourism products centered on drama and film shooting locations. It also plans to host the 'Korea Duty Free Festa' around downtown duty-free shops in regional cities and increase domestic routes between Incheon International Airport and regional airports to draw more visitors to local destinations.  In addition, it will swiftly execute the supplementary budget, including expanded emergency livelihood support and payments for high oil price relief, to help vulnerable households stabilize their livelihoods and maintain spending power amid the Middle East war and high oil prices. \r\n Min Kyung-seol, head of the Office for Innovative Growth at the Ministry of Economy and Finance (MOEF), said, "This measure is designed to sustain the energy-saving drive while also achieving a recovery in domestic demand through greener consumption and stronger tourism." She added, "We will move quickly on supplementary budget execution and inter-ministerial cooperation so that policy effects can be felt on the ground as soon as possible."
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hippo@fnnews.com Kim Chan-mi Reporter