"Provide Temporary Office for 6 Months to Travel Industry Demanding 'Survival Guarantee'"

Tourism Corporation Selects 150 Companies to Provide Free Shared Office Spaces

Due to the prolonged COVID-19 pandemic, the travel industry continues to suffer increasing losses, and a travel agency in Seoul remains closed. Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Heung-soon] The Korea Tourism Organization will provide temporary office space for six months to travel agencies struggling to survive due to the prolonged COVID-19 pandemic. This measure reflects the concerns of industry insiders about the burden of rental fees.

The Tourism Organization announced on the 17th that it plans to select a total of 150 travel agencies through a public contest by the 23rd and lease shared offices near major subway stations in Seoul to offer free office space for six months to the selected companies. The office space can accommodate 1 to 2 people per company.

A Tourism Organization official explained, "During online and offline meetings with the travel industry, which has been severely affected by COVID-19, many voices expressed that rental fees are a heavy burden. We decided to provide shared offices free of charge so that industry insiders can maintain minimal operations."

The 150 travel agencies eligible for the program must be registered businesses under the Tourism Promotion Act, and as of today, any small business or small merchant operating for more than three years can apply. Applicants can download the required documents from the Tourism Organization’s website and submit them via email. Among the applicants, selection will be based on a combined score of 70% for the rate of sales decline compared to the previous year and 30% for employment retention rate. Businesses that are temporarily closed, permanently closed, or have outstanding national or local tax arrears are not eligible for support.

The travel industry has been hit hard by the COVID-19 crisis. According to the Ministry of Culture, Sports and Tourism, travel industry sales decreased by approximately 5 trillion won compared to the same period last year through the third quarter of this year. Even medium and large travel agencies, unable to bear repeated losses, have extended unpaid leave for employees until March next year or have implemented voluntary retirement.

The Korea Association of Travel Agents, which has travel agencies as members, issued a statement last month saying, "Since the outbreak of COVID-19, we have been in a de facto business suspension state, facing the grim reality of 'zero sales for 10 months,' fighting daily for survival. We request that support measures, including operational expense assistance, be considered to create a minimum survival environment for the approximately 100,000 workers who lost their livelihoods overnight."

The Tourism Organization added, "We plan to implement various support measures such as management consulting through the Tourism Enterprise Support Center and familiarization tours to develop domestic travel products so that the travel industry can endure and make a fresh start."

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