Market Update: Gov’t to offer discounts to boost spending ahead of Seollal – Full Analysis

 
The government on Tuesday unveiled a broad package of measures to curb prices and spur spending ahead of the Seollal holiday, pledging deep discounts on staple foods and expanded support for households and small businesses.
 
Key seasonal items such as mackerel will be supplied at discounts of up to 50 percent, along with other measures to spur spending during the holiday period, including toll-free expressways to encourage travel.
 
Deputy Prime Minister and Finance Minister Koo Yun-cheol presented the plan to President Lee Jae Myung at a Cabinet meeting at the presidential office on the same day. Officials said the measures aim to ease inflation pressures on working families and reduce costs for merchants and vulnerable groups during the holiday period.
 
The government will first ensure an ample supply of 16 key seasonal items and tighten price monitoring. Discount support for major holiday necessities will be expanded, while 2.24 million fresh eggs will be imported and supplied to the market before Seollal.
 
New tariff-rate quotas will also be applied to imported items with high price volatility, such as mackerel, bananas, pineapples and mangoes.
 
To promote traditional markets and encourage spending, the government will significantly expand its gift certificate rebate events. The number of markets eligible for rebates on agricultural, livestock and fisheries products will be increased to 200, and the number of markets eligible for seafood rebates will also be expanded to 200.
 

Minister of Economy and Finance Koo Yun-cheol attends a Cabinet meeting at the Blue House on Jan. 27. [YONHAP]

 
The government will also step up efforts to crack down on price gouging and accelerate investigations into alleged collusion involving sugar, flour, eggs and starch syrup.
 
The measures also include financing support. The government will provide 39.3 trillion won ($27.2 billion) in holiday funding for small businesses and small- and medium-sized companies and expand loan guarantees to 58 trillion won. About 5 billion won will also be provided to support merchants in traditional markets for holiday necessities.
 
For low-income and vulnerable groups, as well as young people, the government will supply 1.1 trillion won in financial support before Seollal, while around 1.6 trillion won in benefits, including livelihood assistance, will be paid early around Feb. 13.
 
Steps to boost domestic demand will also be pushed. With the Seollal holiday running five days including the weekend, expressway tolls will be waived.
 
The government will provide 400,000 won in vacation support to 50,000 workers in January and February, with up to an additional 50,000 won during the Seollal period to encourage tourism spending. It will also strengthen marketing for inbound tourism products around China’s Spring Festival holiday and extend the “Korea Grand Sale” through Feb. 20.
 
“We will strengthen the 24-hour situation management system and conduct special safety inspections in areas such as fire prevention so that people can enjoy a safe and comfortable Seollal holiday,” Koo said. “We will do everything we can to stabilize prices and help restore livelihoods.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JEONG JAE-HONG [[email protected]]