"Let's Raise Lunar New Year Gifts to 200,000 Won"... Distribution and Farms React Positively

Government Moves to Raise Allowable Gift Value
Distribution Industry Increases Premium Gift Sets to 200,000?500,000 KRW Range
Relief for Hanwoo and Fruit Farmers

Agriculture and Fisheries Demand Revision of Kim Young-ran Act
Annual Holiday Period Gift Limit Increase to 200,000 KRW Proposed

[Asia Economy Reporter Seungjin Lee] As the government is expected to raise the allowable amount for Lunar New Year gifts from the current 100,000 won to 200,000 won this year, the distribution industry and farmers have welcomed the move. The distribution industry and farmers, who saw sales growth effects after raising the gift allowance last Chuseok, are expecting a temporary sales increase this Lunar New Year amid an overall consumption slump.

From 100,000 to 200,000 won, a welcome change for the distribution sector

According to the distribution industry on the 7th, this Lunar New Year is also expected to be a 'contactless holiday' like last Chuseok, leading to a significant increase in the proportion of 'premium gift sets' priced between 200,000 and 500,000 won. The government is expected to temporarily raise the gift allowance for agricultural and marine products and processed agricultural and marine products from 100,000 won to 200,000 won, as it did last Chuseok, which is likely to boost sales of related products.

In fact, during the one month before and after the holiday (September 5 to October 4) last Chuseok, when the gift allowance was raised to 200,000 won, the sales of agricultural and marine food gift sets by eight distribution companies (department stores, large marts, home shopping) increased by 7% compared to the same period the previous year. Among these, gifts exceeding 200,000 won increased by 20.0% compared to the previous year, with sales of livestock products such as Korean beef rising significantly by 17.7%.

The popularity of livestock gift sets is a boon to Korean beef farmers. This is because grilled Korean beef accounts for a large proportion of livestock gift sets, and most belong to high-priced gifts over 200,000 won. This measure is also expected to greatly help fruit farmers. Due to the longest rainy season and cold damage last summer, prices of apples and pears in January rose by more than 50-70% compared to the previous year, which also increased the price of gift sets.

"Let's raise the upper limit of the Improper Solicitation and Graft Act altogether"

Voices demanding institutional improvements related to the gift allowance for agricultural and marine products are emerging in the agricultural and fishery sectors. The Korea Agricultural Management Association, an agricultural organization, publicly proposed on the 15th of last month to amend the Enforcement Decree of the Act on the Prohibition of Improper Solicitation and Graft (Improper Solicitation and Graft Act). The proposal mainly called for raising the gift allowance for agricultural and livestock products from 100,000 won to 200,000 won during the Lunar New Year and Chuseok holidays each year. The National Agricultural Cooperative Federation, National Federation of Fisheries Cooperatives, and Korea Forestry Cooperative also delivered a joint petition on the same day urging the increase of the gift allowance for agricultural, livestock, and marine products to the Anti-Corruption and Civil Rights Commission.

The distribution industry has not issued a specific stance but seems to welcome the change. Due to last year's sharp price increases, it has become difficult to maintain product variety within the current 100,000 won limit for agricultural and marine products. Gifts priced between 100,000 and 200,000 won are already popular in the market. According to an analysis of pre-order results by Emart from the 24th to the 31st of last month, gift sets priced between 100,000 and less than 200,000 won grew by 180.7%, and those over 200,000 won grew by 76.8%.

Ultra-high-priced Lunar New Year gifts have also appeared at convenience stores. GS25 sells a set priced at 1,500,000 won that includes eight types of two-bull number nine grade Korean beef such as sirloin, chuck flap tail, skirt meat, and tenderloin, along with four luxury spices including truffle salt and white truffle extra virgin olive oil. GS25 offers up to 50% discounts through promotions like one-plus-one (1+1) and two-plus-one (2+1) when purchasing about 100 products including Korean beef, seafood, fruit, handmade ham, and canned goods with affiliated cards during the Lunar New Year gift pre-purchase period, aiming to capture the 'contactless Lunar New Year' market.

A distribution industry official explained, "The increase in the gift allowance last Chuseok led to higher sales of premium gift sets, which significantly boosted overall gift set sales compared to the previous year," adding, "This Lunar New Year, the number of customers sending gifts without visiting their hometowns is expected to increase, leading to a substantial rise in gift sales."

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