"Reviving the Economy"... Job Coupons Distributed and Korea Together Sale Held in the First Half of the Year

March to June, 70% Reduction in Vehicle Excise Tax

KTX Discount Events and Group Support for Local Festival Performances

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government has introduced measures to stimulate domestic consumption, such as issuing consumption coupons and holding the Korea Together Sale, to minimize the economic damage caused by the novel coronavirus infection (COVID-19). Additionally, tax reduction policies, including a temporary cut in the individual consumption tax (ICT) on automobiles, have been prepared.

On the 28th, the government held the 9th Economic Ministers' Meeting on COVID-19 Response and the 6th Economic Vitality Measures Meeting, chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki at the Government Seoul Office, and announced the "Comprehensive Livelihood and Economic Measures to Minimize the Impact of COVID-19 and Achieve Early Recovery."

First, to promote consumption in various sectors such as jobs, vacations, culture, tourism, and childbirth, the government will introduce the "Five Major Consumption Coupons" system. The Job Coupon plan will provide an additional incentive equivalent to 20% of the total remuneration when elderly job participants receive 30% of their total remuneration in gift certificates.

Through the Vacation Coupon, the government will expand support for the "Korean-style Check Vacation," which matches workers' vacation expenses for domestic tourism, from the initial 80,000 people to 120,000 people. Additionally, integrated cultural use vouchers worth 90,000 KRW will be supplied for low-income groups.

Furthermore, after visiting local festivals and major tourist attractions, citizens who certify their visits on social network services (SNS) will be newly awarded a National Tourism Gift Certificate worth 100,000 KRW through a lottery. Pregnant women will also receive an additional electronic voucher to purchase eco-friendly agricultural products worth about 40,000 KRW per month.

The government also plans to hold the "Korea Together Sale," a win-win concept event involving large and small retailers, traditional markets, and small business owners, during the first half of the year.

As an alternative, a 70% reduction in the ICT for all passenger car purchases has been proposed. The ICT reduction system will be implemented for three months from March to June, with a reduction limit of 1 million KRW. The income deduction rate for expenditures made by check and credit cards during March to June will also be significantly expanded to about twice the existing level. Going forward, the deduction rates will increase from 15% to 30% for credit cards, from 30% to 60% for check cards and cash receipts, and from 40% to 80% for traditional markets and public transportation.

In addition, the government plans to implement a temporary 50% reduction in admission fees for national cultural and artistic facilities, promote a one-month KTX discount event, and expand support for local festivals and performance groups.

This content was produced with the assistance of AI translation services.