Consumer sentiment stands at 97.8 despite rebound in Jeju tourists... Chuseok and Korean National Sports Festival demand linked to local commercial districts

[Financial News Jeju = Reporter Jeong Yong-bok] Although the number of tourists in Jeju has returned to an upward trend for the first time in four months, consumer sentiment has fallen back below the baseline, and consumer prices continue to rise in the 3% range.
According to Jeju Special Self-Governing Province on the 14th, the September comprehensive meeting of the Livelihood Economy Situation Room was held at Tamna Hall at the provincial government office that day, presided over by Jeju Special Self-Governing Province Governor Wi Seong-gon, and the "Comprehensive Measures for Promoting Consumption and Revitalizing the Livelihood Economy" were discussed.
Currently, the Jeju economy shows significant disparities across indicators. The retail sales index in the second quarter increased by 2.3% compared with the same period last year. However, compared with the 7.0% growth rate in the first quarter, the pace of consumption growth has slowed significantly.
The consumer sentiment index fell for two consecutive months, dropping from 104.6 in June to 100.8 in July and 97.8 in August. An index below 100 means that consumers view the economic situation relatively pessimistically compared with the long-term average.
The burden of grocery shopping also continues. Consumer prices in Jeju rose 3.1% in August from the same month a year earlier. After falling from 3.4% in June to 2.9% in July, they rose back into the 3% range.
On the other hand, the number of tourists turned upward for the first time in four months, and the employment situation also improved. This is the background to Jeju Special Self-Governing Province's policy focus on retaining consumption demand within the region in September and October, as the rebound in tourism and employment has not led to an actual recovery in consumption.
The biggest card is the local currency "Tamnajeon." Jeju Special Self-Governing Province is raising the monthly Tamnajeon point accumulation limit from 700,000 won to 1 million won in September and October. With a 10% accumulation rate, the maximum monthly accumulation will also increase from 70,000 won to 100,000 won. To this end, an additional 31.1 billion won has been secured.
At Good Price Businesses, the rebate will be 15%, adding 5 percentage points to the existing 10% accumulation rate. Of the 432 Good Price Businesses in the province, 414 are Tamnajeon affiliated stores.
Refunds will also be offered for spending at traditional markets during Chuseok. Those who purchase domestic agricultural, livestock, and fishery products at 16 locations in the province, including traditional markets, joint markets, and alley-type shopping streets, will receive up to 30% of the purchase amount back in Onnuri Gift Certificates. The refund limit is 20,000 won per person. Purchases of 34,000 won or more but less than 67,000 won qualify for 10,000 won, while purchases of 67,000 won or more qualify for 20,000 won.
Visitors to the Korean National Sports Festival will also be connected to local consumption. Tamnajeon worth 10,000 won each will be given to 30,000 people who verify attendance at three events in total, including at least one of the opening or closing ceremonies. The project budget is 300 million won.
Large and small supermarkets are offering discounts of up to 40% on agricultural and livestock products and are also holding promotional events for Jeju-produced agricultural and livestock products such as tangerines, Hanwoo beef, and pork.
Incentives to shift tourists' spending into alleyways will also be expanded. Group tourists of 15 or more will receive 30,000 won in Tamnajeon per person, and incentives will also be provided to travelers with pets using boat routes and to those traveling by bicycle or motorcycle.
Tamnajeon will also be provided to users of safety-certified rural guesthouses and electric vehicle rental cars, as well as customers of Good Price Businesses and Jeju Centennial Stores. A system is also being promoted to link Tamnajeon usage with the digital tourism pass "Nauda," so that the amount tourists spend in the region returns to them as tourism benefits.

The Korean National Sports Festival and cultural events will be connected to old downtown areas and alleyway commercial districts. Jeju Special Self-Governing Province is intensively operating consumption stamp programs, busking, flea markets, and receipt events in the old downtown areas and alley-type shopping streets of Jeju City and Seogwipo City. This strategy aims to prevent tourists from visiting only event venues and leaving, while increasing the time they spend in surrounding commercial districts.
It is also expanding sales channels for local businesses. Special Chuseok sales and sales linked to the Korean National Sports Festival will be held on e-Jeju Mall and e-Jeju Shop, while support will be provided for entry into pop-up stores in Seongsu-dong, Seoul, and Jeju, as well as crowdfunding and major online distribution platforms.
Along with promoting consumption, financial support to help small business owners weather their financial difficulties will also be expanded. This year, an additional 30 billion won in special guarantees for small business owners will be added to the existing 84.5 billion won in guarantee support. A separate special guarantee of 7 billion won will be supplied to small tourism businesses.
The additional guarantees for small business owners consist of a 15 billion won special livelihood stability guarantee funded by special contributions from commercial banks and a 15 billion won special hope transition guarantee funded by contributions from the Korea Federation of Community Credit Cooperatives.
Emergency living funds will be provided to financially vulnerable people at an annual interest rate of 1%, up to 1 million won per person. A mutual growth and inclusion savings account will also be promoted, providing support equal to 50% of the amount deposited at maturity if 10,000 to 200,000 won is saved monthly for two years. The applicable interest rate is around 7% per year.
Jeju Special Self-Governing Province is strengthening price management while simultaneously boosting consumption. During Chuseok and the Korean National Sports Festival, a comprehensive situation room for price measures will be operated intensively, with on-site inspections of agricultural, livestock, and fishery products, personal services, commercial practices, and price gouging. Price surveys for 124 grocery-basket items will be increased from once a week to twice a week.
The response system for the livelihood economy is also being elevated. Jeju Special Self-Governing Province has elevated the head of the Livelihood Economy Situation Room from the director of the Economic Vitality Bureau to the Vice Governor for Climate Economy. The comprehensive meeting will be held once a month, while working-group meetings in areas such as the living economy, primary industries, tourism, and construction will be held at least twice a month.
Through the Digital Integrated Dashboard for the Livelihood Economy, which has been in operation since last July, indicators such as prices, consumption, tourism, primary industries, and construction are monitored daily, weekly, and monthly. Jeju Special Self-Governing Province plans to upgrade this system into an AI-based economic crisis response system starting next year.
Jeju Special Self-Governing Province Governor Wi Seong-gon said, "The increased number of people and consumption in the autumn season must circulate within Jeju and reach traditional markets, alleyway commercial districts, farmers, fishers, and small business owners in a tangible way," adding, "Let's connect departmental projects into a single consumption-promotion flow and work together to find measures that can be implemented immediately on the ground."


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