Bang Gi-seon Vice Minister: "Improvement of Travel Balance is a Key Variable for Current Account Balance This Year"

The 21st Emergency Economic Vice-Ministerial Meeting

Bang Gi-seon, the 1st Vice Minister of the Ministry of Economy and Finance, stated on the 7th, "The speed at which the domestic demand revitalization measures announced last month are implemented and the extent to which they generate improvements in the travel balance will be an important variable for this year's current account balance."

On this day, Vice Minister Bang made these remarks at the 21st Emergency Economic Vice Ministers' Meeting held at the Government Seoul Office.

Vice Minister Bang said, "Although the trade deficit in February significantly narrowed compared to January, the improvement in the current account balance was limited due to a decrease in dividend remittances, which had increased sharply the previous month. The service balance has recently worsened compared to last year, mainly due to transportation and travel balances, acting as a constraint on the current account surplus trend."

He added, "Since March, the number of foreign arrivals has been increasing, and the trade balance is gradually improving with a time lag, so the current account balance this year is expected to show a pattern of being lower in the first half and higher in the second half, with an annual surplus of around 20 billion USD anticipated."

During the meeting, follow-up measures and future implementation plans for the domestic demand revitalization measures were reviewed and discussed.

First, starting this month, the income deduction rate for cultural expenses and traditional market spending will be increased by 10 percentage points, and amusement facility vouchers will be added to the corporate cultural business expense category. Various mega events will also be held, starting with the 'NaeNara Travel Expo (April 13?16)', followed by the 'Seoul Festa (April 30?May 7)', 'Korea Duty-Free Festa (May 1?31)',

and the 'K-pop Dream Concert (May 27)'.

From the end of May, when traveling domestically, general citizens (1.34 million people) will receive discounts on essential travel expenses such as 30,000 KRW per person for accommodation and 10,000 KRW for amusement facilities. Workers of small and medium enterprises and small business owners (up to 190,000 people) will receive vacation support of up to 200,000 KRW (100,000 KRW from companies + 100,000 KRW from the government).

In April, when using the high-speed rail SRT, discounts of up to 30% will be available. In May, the discount rate for multi-child families on KTX (4-person companion seats) will be expanded from 30% to 50%, and in June, youth will benefit from the 'Naeillo Pass' discount, along with various tourist train products linked to seasonal regional festivals.

For foreign tourists visiting Korea, the electronic travel authorization (K-ETA) requirement has been temporarily waived since the 1st for 22 countries. In May, the three types of visa-free transit systems suspended due to COVID-19 will be resumed, simplifying entry procedures and making domestic transit tourism more convenient. Additionally, airfare discounts for overseas tourists, increased international flights to China, Japan, and Southeast Asia, and landing fee exemptions (from May to November) for irregular flights at regional international airports (Gimhae, Daegu, Muan, Cheongju, Yangyang) will be implemented.

Furthermore, to attract foreign tourists domestically, K-Food Days will be operated in conjunction with food companies during mega events, and a series of K-Food events such as the Korea Livestock Expo (May 1?2) will be held. K-Fashion discount events, including the Myeongdong Festival (April 30?May 7), will also take place.

Bang Gi-seon, Vice Minister of Strategy and Finance, is delivering opening remarks while presiding over the '21st Emergency Economic Vice Ministers' Meeting' held at the Government Seoul Office Building on the 7th.

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