Beyond discounts, government launches shopping festival with 40,000 companies to revive local businesses

[Financial News] The government is launching a major consumption-boosting campaign to revitalize local commercial districts struggling amid a slump in consumer spending. It will expand discounts on key products, including Korean beef, seafood, cars and home appliances, while enhancing benefits for Local Love Gift Certificates and Digital Onnuri Gift Certificates. In particular, it plans to offer additional benefits for spending outside the Seoul metropolitan area, with the aim of turning the boost in spending into increased sales for local neighborhood businesses and small business owners.
According to industry sources on the 27th, the government presented a plan for the second Korea Grand Festival, which includes these measures, at a Cabinet meeting that day.
The Korea Grand Festival is a nationwide shopping festival that brings together consumption-boosting events run by different ministries, including K-Shopping Festa, which supports sales of products from small and medium-sized enterprises and small business owners, and K-Sale Festa. Some 40,000 companies will take part in this year's event, which runs from the 29th through November 15.
A key feature of this year's event is enhanced benefits for spending in local areas. During the event, the discount rate on Local Love Gift Certificates will rise by 5 percentage points, supported by increased government funding. The rates will therefore increase to 13% in the Seoul metropolitan area, 15% outside it, and 17% in areas with declining populations. Some local governments are also pursuing separate refund benefits, increased issuance and higher purchase limits.
Discount benefits for Digital Onnuri Gift Certificates, which can be used at traditional markets and in neighborhood commercial districts, will also be expanded. From November 2 to 6, the discount rate will rise from 7% to 10%.
A shared-growth consumption lottery will also be held to encourage spending in local areas. Through the 15th of next month, participants will receive one entry for every 30,000 won in cumulative Digital Onnuri Gift Certificate payments, with twice as many entries awarded for transactions outside the Seoul metropolitan area.
A total of 5,600 people will be selected by lottery to receive 1.7 billion won. In particular, the 10 first-prize winners will be selected only from entries earned through payments outside the Seoul metropolitan area, and each will receive 30 million won in Digital Onnuri Gift Certificates. The system is designed to give people more chances to win the more they spend in local areas.
Discounts on food products will also be expanded. For the kimchi-making season, from the 29th of this month through December 2, around 300 retailers nationwide, including supermarkets and local agricultural cooperatives, will offer discounts of up to 40% on key ingredients such as cabbage, radishes, chili peppers, garlic and ginger.
Korean beef will be sold at discounts of up to 50% at retailers nationwide from the 28th of this month through November 8. Major seafood products, including dried seaweed, salted shrimp and sun-dried salt, will also be offered at up to 50% off in separate sales.
The automotive and home appliance industries are also joining the campaign to boost consumption. Five domestic automakers, including Hyundai Motor Company, Kia Corporation, GM Korea, Renault Korea Co., Ltd. and KG Mobility, along with Samsung Electronics and LG Electronics, will hold discount sales starting on the first of next month. The eligible car models and products, as well as the discount rates, will be announced on the day the event begins. Certified pre-owned vehicles from Hyundai Motor Company and Kia Corporation will take part for the first time.
Major department stores will hold regular sales and special promotions focused on winter clothing. Naver will launch K-Sale Festa Big Brand Week, featuring 25 companies selling processed foods and household goods, while B Mart will offer discounts of up to 60% through its November 5-Day Market.
The government also plans to expand online sales channels for products from small and medium-sized enterprises and small business owners. 11st, Gmarket and Grip will offer products at 20% off through time deals and live-stream sales.
Events such as commercial district tours, discounts and coupon giveaways will take place in 159 local commercial districts and markets nationwide. Refunds, cash-back offers, cultural performances and pop-up stores will be coordinated to encourage customers visiting local favorites such as Seongsimdang, Samjin Fish Cake and Taegukdang to visit nearby shops as well.
The joint opening event will be held on the 31st in the area around the former Andong Station in Andong, North Gyeongsang Province. Discount sales will also take place in five nearby commercial districts, and a temporary sightseeing train will connect Andong's tourist attractions and traditional market with the opening ceremony venue.
Benefits have also been prepared to encourage spending by foreign tourists. Twenty-five duty-free shops nationwide will offer discounts of up to 25%, and during the event, the four royal palaces, including Gyeongbokgung Palace and Changdeokgung Palace, as well as Jongmyo Shrine and the Joseon royal tombs, will be open free of charge. Regular closing days and Changdeokgung's Secret Garden are excluded.
The government plans to use the event to link discount sales by major retailers with efforts to promote sales by local small businesses. How much the consumer benefits translate into actual visits to local areas and increased sales in neighborhood commercial districts is expected to be a measure of the festival's success.
Details of discounts and how to participate in each event are available on the Korea Grand Festival's official website and Instagram account.


[email protected] Kim Hyun-chul Reporter