Korean government unveils plans to boost domestic consumption

[Photos by MK DB]

The South Korean government on Wednesday unveiled a plan to spend 60 billion won ($46 million) to boost domestic consumption that has remained sluggish after the pandemic.

President Yoon Suk Yeol presided over a meeting on economic affairs with economy-related ministers on Wednesday at the presidential office in Seoul and announced comprehensive measures to boost domestic consumption.

Under the measures, the government will temporarily raise the rate of income tax deduction on cultural expenses and payments in traditional markets by 10 percentage points between April and December. Cultural entertainment payments will be eligible for up to 40 percent in tax deduction and traditional market payments up to 50 percent.

The measures also include boosting travel demand. The government will spend 40 billion won to provide 30,000 won accommodation and leisure coupons each to 1 million individuals. It will also spend 20 billion won to grant travel subsidies to employees at small and mid-size companies and self-employed individuals. Up to 190,000 workers will receive 100,000 won in travel subsidies each.

The government will also temporarily exempt the Korea Electronic Travel Authorization (K-ETA) until next year for 22 countries including the U.S., Japan, Hong Kong, and Taiwan. K-ETA is an electronic travel permit that visa-free foreign visitors need to obtain before entering Korea by submitting their travel information online.