COVID-19 Restrictions Lifted... Government Accelerates Measures to Revitalize Domestic Consumption

23rd Emergency Economic Vice Ministers' Meeting Held
Benefits and Participation Methods for 'June Travel Month' to Be Announced Next Week

Starting next month, the mandatory quarantine for COVID-19 confirmed cases will be lifted, marking the entry into a de facto 'complete return to normal life phase' after 3 years and 4 months. Accordingly, the government has decided to accelerate measures to revitalize domestic consumption.

On the 12th, Bang Gi-seon, the 1st Vice Minister of the Ministry of Economy and Finance, chaired the 23rd Emergency Economic Vice Ministers' Meeting at the Government Seoul Office, where they discussed the 'Progress Check and Future Plans for Domestic Consumption Revitalization Measures' containing these details.

Vice Minister Bang stated, "The government is continuing the recovery trend in consumption centered on face-to-face service industries while promoting the recent increase in inbound tourists to improve the travel balance. We are accelerating the domestic consumption revitalization measures announced last March." He added, "We will announce the benefits and participation methods for the June Travel Month next week to guide and support the public in preparing their trips in advance."

The government plans to designate the last weekend of every month as a 'Weekend with Travel' starting this month, preparing various travel programs by region and conducting both online and offline events.

The Worker Vacation Support Project aims to recruit up to 190,000 people by the end of this month. Additionally, mega events such as the '2023 Korea Together Festival (May 1?28)', 'Hadong World Tea Expo (May 4?June 3)', and 'Busan Dream Concert (May 27)', along with relay K-Food events and other domestic demand boost packages, will be carried out without delay.

At the meeting, 'Trends and Countermeasures for Local Public Utility Charges' were also discussed. Consumer prices in April rose 3.7% year-on-year, entering the 3% range for the first time in 14 months, but uncertainties such as international energy price volatility remain.

Vice Minister Bang emphasized, "In the second half of the year, increases in local public utility charges could be a major inflationary pressure, so active cooperation from local governments is necessary. Efforts to reduce costs and improve management efficiency should absorb as much of the increase as possible, and if unavoidable increases occur, their timing should be deferred and dispersed to minimize the burden on the public."

The government decided to differentially allocate 30 billion KRW in incentives from the Local Tax Allocation Fund and 20 billion KRW in special grants based on evaluations of local governments' public utility price stabilization achievements in the first half and their stabilization plans and efforts in the second half to actively support local governments' efforts to stabilize prices.

Vice Minister Bang said, "For our economy to recover fully, it is essential to maintain price stability and consumption recovery trends while also revitalizing the still sluggish exports and investment. The government will focus on stabilizing livelihoods such as prices and employment, and strengthen comprehensive policy responses including tax and financial support for domestic demand, exports, and investment activation, as well as resolving corporate difficulties to achieve a swift economic rebound."

Bang Gi-seon, Vice Minister of Strategy and Finance, is delivering opening remarks while presiding over the "23rd Emergency Economic Vice Ministers' Meeting" held at the Government Seoul Office Building on the 12th.

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