Transition Team "3 Trillion Won Financial Support for Tourism Industry... Introduction of Sports Mileage System"

Kim Do-sik, Member of the Social Welfare and Culture Subcommittee of the Presidential Transition Committee [Photo by Yonhap News]

[Asia Economy reporters Bu Aeri and Yoo Byungdon] The Presidential Transition Committee announced on the 2nd that it will expand financial and fiscal support for the tourism industry, which has been hit hard by COVID-19.

Kim Dosik, a member of the Social Welfare and Culture Subcommittee of the Transition Committee, said at a press conference in Tongui-dong on the morning of the same day, "We will continue large-scale financial support for about 30 tourism sectors, including travel agencies and international conference businesses, until the tourism market recovers."

The Transition Committee stated that it will support low-interest loans from the Tourism Fund and special loans with credit guarantees, which amount to 630 billion KRW this year, at 600 billion KRW annually for five years starting next year, totaling 3 trillion KRW.

They also plan to actively consider deferring repayment of principal on Tourism Fund loans and reducing interest rates, taking market conditions into account.

They will also consult with relevant ministries regarding the extension of the designation period for special employment sectors in tourism, which expires at the end of this year, and the rationalization of conditions for employment retention subsidies.

Additionally, a 'damage support fund' based on cumulative losses will be separately paid immediately upon the passage of the supplementary budget bill for small business owners and small enterprises in the tourism industry.

Commissioner Kim explained, "We announced that the travel industry is included among the 5.51 million small business owners and small enterprises to receive full damage support," adding, "The Yoon Seok-yeol administration's pledge is to strengthen compensation for the travel industry, and we believe sufficient compensation support will be provided. We will continue to support through communication with related industries and government ministries."

Regarding the revision of the Tourism Promotion Act, the Transition Committee plans to amend the classification of tourism businesses, which is currently limited to seven major sectors, to include new types of tourism enterprises. Commissioner Kim said, "After COVID-19, the travel industry has shifted to non-face-to-face operations and become more segmented," adding, "We intend to revise the law to make it easier for various occupations in the tourism industry to enter, fitting the new era."

To revitalize domestic travel, a 'public-private collaboration project' will be implemented. On June 18, 'Travel Month' will be held with the participation of 18 public institutions, 17 local governments, and the travel industry, and in August, it will be linked with 'Seoul Festa 2022' and 'Korea Grand Sale.' Furthermore, 2023-2024 will be designated as the Year of Visiting Korea to attract foreign visitors.

They will also promote large-scale regional tourism development projects worth 4.5 trillion KRW to connect Yeonghonam (southern region) and revitalize inland areas of Gangwon and Gyeongbuk. Five additional regional tourism hub cities will be selected and developed into international tourism cities.

Moreover, the scope of the 'Worker Vacation Support' project for small and medium-sized enterprise employees will be expanded, and a 'domestic travel utilization financial model' linked with commercial bank travel savings plans will be introduced.

They will also support the high growth of tourism ventures by fostering 200 global leading companies and three promising tourism unicorns. To this end, the tourism enterprise development fund will be expanded to 500 billion KRW by 2027.

The Transition Committee also announced the introduction of a 'Sports Mileage' system to promote recreational sports. This system grants mileage linked to the National Physical Fitness Certification System, which can be used like cash at sports, health, and cultural facilities.

The system will provide accumulative mileage based on improvements in fitness certification grades and participation in sports activities such as sports clubs, targeting citizens aged 11 and older who can obtain physical fitness certification.

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