Economic ministers announce ‘Chuseok livelihood stabilization measures’ at economic ministers meeting
Includes measures to stimulate private consumption amid prolonged domestic consumption downturn
Traditional market deduction rate 80%… Onnuri gift certificate business expense included
500,000 lodging discount coupons distributed… Toll-free highways, ‘[Seoul=Edaily Lee Ji-eun] With Chuseok (September 17th) approaching, the government has stepped in to support consumption weakened by high interest rates and inflation. They will exempt value-added tax on company holiday gifts and provide additional deductions for increasing expenditures in the second half of the year. The income deduction rate for spending at traditional markets will be raised to 80%’,
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| An introduction to Onnuri gift certificate franchises posted in a store in a traditional market in downtown Seoul. (Photo=Yonhap News) |
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, Traditional market deduction rate up to 80%… Onnuri gift certificate business expense included,
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, ‘On the 28th, the government announced the ‘2024 Chuseok Livelihood Stability Measures’ at the economic ministers meeting held at the Seoul Government Office in Jongno-gu, presided over by First Deputy Prime Minister and Minister of Planning and Finance Choe Sang-mok.’,
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, ‘Although there continues to be a recovery trend in exports and manufacturing centered around 2% inflation stability, domestic demand remains weak. Consumer goods consumption has decreased for nine consecutive quarters, and production in service industries closely related to consumption, such as retail and accommodations and food services, has been declining for over a year. Reflecting the negative trend in domestic indicators such as private consumption, South Korea experienced a reverse growth in the second quarter of this year (April-June).’,
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, ‘In order to boost consumption, the government has decided not to levy value-added tax on goods worth up to 100,000 won given to employees as gifts for holidays and Chuseok. This separate categorization for holiday gifts now differs from the former practice of applying it collectively to holidays, birthdays, and founding anniversaries.’,
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, ‘Income deductions for second-half consumption will also be expanded. If spending in the second half of this year increases by more than 5% compared to the second half of last year, the income deduction rate for the increase will be doubled to 20%. The income deduction rate for spending at traditional markets will be raised from 40% to 80%.’,
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, ‘Starting next month, the monthly purchase limit for individual Onnuri gift certificates will be raised by an additional 50,000 won to 200,000 won for paper vouchers. The discount rate for card-type and mobile vouchers will be increased from 10% to 15%. Measures to expand usage, such as reducing restricted usage industries for Onnuri gift certificates, will also be pursued. For companies purchasing Onnuri gift certificates for business purposes, a special tax exemption for business expense inclusion will be applied.’,
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, ‘However, for these consumption promotion measures to be effective in the second half of the year, parliamentary approval is required. The upward adjustment of income deduction rates requires amendments to the Income Tax Act, and the special tax exemption for business expenses for Onnuri gift certificates requires amendments to the Special Tax Treatment Law. Similar attempts were made in the first half of the year to expand additional consumption portions and income deductions for spending at traditional markets, but the related bill on special tax treatments was discarded in the 21st National Assembly.’,
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, ‘To create a consumer-friendly atmosphere, the government plans to continue monthly promotions such as the Autumn Regular Sale (September-October), Co-Event Festivals (September-December), and Korea Sale Festa (November). They also plan to realize the current standards of the Anti-Graft Law that do not reflect present prices. They are considering raising the limit on food gift prices from 30,000 won to 50,000 won and increasing the gift values for agricultural and fishery products.’,
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| Departure area for domestic flights at Gimpo Airport crowded. (Photo=Yonhap News) |
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◇Issuance of 500,000 lodging discount coupons in non-capital regions… Toll-free highways,
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, ‘Efforts to boost consumption through tourism revitalization within non-capital regions are being reinforced. 500,000 coupons for accommodations in non-capital regions will be distributed, and their expiration date will be extended until the end of November. Plans include providing additional discount options and encouraging regional tourism through local organization discounts. An additional 50,000 workers from small and medium-sized enterprises will be recruited to receive 400,000 won in vacation expenses. However, the usage is limited to domestic travel only.’,
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, ‘To link holidaymakers visiting their hometowns with tourism, highway tolls will be waived during the holiday season, and up to a maximum of 40% discount will be applied to train fares for return trips home. When traveling by train to depopulated areas, one can receive a priority 10% discount and an additional 40% discount. Parking fees at airports and national-operated coastal (comprehensive) passenger terminals, as well as parking fees for local and public organizations, will be free for domestic travelers. Municipal and public agency parking lots will be opened, and primary, middle, and high school sports grounds will be encouraged for parking.’,
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, ‘From October 14th to 18th, the Cheong Wa Dae and palaces will have extended evening hours, and national treasures and art museums will open for free. In addition, the ‘Korea Dulle-gil,’ which connects the outskirts of South Korea into a single route spanning approximately 4,500km, will open its full length for the first time next month. During the holiday period, entry fees to national nature resorts and parking fees at national park-operated parking lots will also be waived.’,
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, ‘To increase the influx of foreign tourists visiting South Korea, they plan to increase flights by more than 25% to East Asian countries, including China, which have high demand for winter tourism. In conjunction with the Korea Sale Festa in November, they will also hold the ‘Korea Duty-Free Festa.”,
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