With a golden holiday period expected in October as the Chuseok holiday overlaps with National Foundation Day and Hangeul Day, attention is focused on whether October 10 will be designated as a temporary holiday.

According to the Aerospace Administration's calendar guidelines on June 16, this October's Chuseok holiday will create a seven-day break: October 3 (National Foundation Day), October 4 (Saturday), October 5 to 7 (Chuseok), October 8 (substitute holiday), and October 9 (Hangeul Day). If October 10 (Friday) is added as a temporary holiday, and the weekend of October 11 and 12 is included, the holiday period would extend to a total of ten consecutive days.

If October 10 is designated as a temporary holiday, adding the weekend would allow for a maximum of 10 consecutive days off. Screenshot from Naver Calendar

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Previously, the government has designated temporary holidays to stimulate domestic demand and guarantee the public's right to rest.

However, recent analysis suggests that the economic impact of temporary holidays is limited. In a report published on June 12 by the National Assembly Research Service titled "The Pros and Cons of Designating Temporary Holidays: The Reality and Limitations of Stimulating Domestic Demand and Guaranteeing the Right to Rest," it was pointed out that "as more people travel abroad, the link between temporary holidays and the revitalization of domestic demand is gradually weakening."

In fact, when January 27 was designated as a temporary holiday, the Lunar New Year holiday was extended from three to six days, but the effect on domestic demand was not clear. The number of outbound tourists in January reached an all-time monthly high of 2,973,000, a 7.3% increase from the previous year, while domestic tourism spending in January was 3 trillion won, down 1.8% from the previous year. As travel demand shifted overseas, small business owners did not benefit from the temporary holiday.

On September 13 last year, one day before the Chuseok holiday, the duty-free area of Terminal 1 at Incheon International Airport was bustling with crowds heading abroad for the holiday. Photo by Jo Yongjun

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It was also found to have a negative impact on exports and production. Due to the extended Lunar New Year holiday in January, the number of working days was reduced by four compared to the previous year, resulting in only 20 working days. Consequently, the export volume in January was $49.13 billion, a 10.2% decrease from the previous year. In terms of industrial production in January, most sectors?including manufacturing, services, and construction?saw declines, with a 1.6% decrease compared to the previous month and a 3.8% decrease compared to the same month last year.

The National Assembly Research Service stated, "Since the overall economy is not strong, the decrease in production cannot be attributed solely to the long holiday period including temporary holidays, but the reduction in working days can be seen as having a partial impact."

The fact that not everyone can enjoy the benefits of temporary holidays is also being criticized. Under current labor law, temporary holidays do not apply to workplaces with fewer than five regular employees. As of 2024, about 10 million people?approximately 35% of all employed persons?are still excluded from holiday benefits.

The National Assembly Research Service stated, "For a significant portion of our citizens, temporary holidays may be nothing more than a pie in the sky," and added, "The government should carefully consider not only domestic demand but also the impact on exports, production, and the overall economy when deciding whether to designate temporary holidays."