PPP asks government to extend Chuseok break to six days

If approved, this would extend the Chuseok or Thanksgiving holiday to a six-day break. Currently, Oct. 2 falls between the Chuseok holiday and the National Foundation holiday. The extended holiday is expected to stimulate the domestic economy

A child dresssed in hanbok walks along a platform at Seoul Station with her parent on the first day of the Chuseok holiday on Sept. 9, 2022. [YONHAP]

The People Power Party (PPP) has asked the government to make Oct. 2 a temporary holiday to stimulate the domestic economy.

If approved, this would extend the Chuseok or Thanksgiving holiday to a six-day break.

Currently, Oct. 2 falls between the Chuseok holiday and the National Foundation Day holiday.

This year's three-day Chuseok holiday lasts from Thursday, Sept. 28, to Saturday, Sept. 30.

Oct. 2 is a Monday, followed by the National Foundation holiday on Tuesday, Oct. 3.

By including Oct. 2, individuals will enjoy a six-day vacation from Sept. 28 to Oct. 3.

"This year's Chuseok holiday is the first since Covid-19 was downgraded to a common flu virus,” said PPP leader Kim Ki-hyeon on Monday, adding that he expected the addition of Oct. 2 as a holiday "to ensure the public's right for sufficient rest and have a positive impact on boosting internal demand and activating consumption."

Kim highlighted the potential time savings due to dispersed traffic and noted that some schools and kindergartens have already decided to suspend classes on that day.

Kim also emphasized the challenges faced by double-income households who might worry about leaving their children at home alone or finding a babysitter.

If the government approves the plan, it will be the first time since the Moon Jae-in government declared Oct. 2 a temporary holiday in 2017, letting some people enjoy an extended break of up to 10 consecutive days that year.

The government is currently focused on boosting the economy by encouraging spending.

The People Power Party's leadership, including party chief Kim Ki-hyeon, center, asks the government to designate Oct. 2 a temporary holiday at the National Assembly in Seoul on Monday. [YONHAP]

Projected growth for the Korean economy this year is in the mid-1 percent range.

This would be the slowest year-on-year growth since the economy contracted 0.7 percent in 2020 due to the Covid-19 pandemic.

The Bank of Korea (BOK) on Thursday has forecasted growth at 1.4 percent, a projection aligned with forecasts by the government and global institutions, including the International Monetary Fund.

Some institutions, like the Korea Economic Research Institute, have a bleaker outlook, predicting 1.3 percent growth for the economy this year.

Exports, especially to China, have struggled throughout the year.

In July, exports fell by 16.5 percent year-on-year, a streak that has continued for 10 consecutive months.

The situation is unlikely to turn around considering the situation in China, especially as the country's real estate market woes spill over into financial markets.

Several Korean business advocacy groups have expressed their support for the temporary holiday.

“The domestic economy’s stagnation has been continuing as private consumption affected by inflation and high interest rates has been shrinking,” said Lee Sang-ho, head of the economic research team at the Federation of Korean Industries. “A six-day holiday is expected to increase travel and improve consumer sentiment, which would contribute to the revitalization of the domestic market.”

The Korea Enterprise Federation also agreed with the extended holiday, saying the long break will likely improve productivity and efficiency.

However, smaller businesses, especially manufacturers, worry about the fewer working days.

The Federation of Middle Market Enterprises of Korea said although they understand that a long holiday will benefit small shop owners, the fewer working days could hurt production.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]