Koo Yun-cheol, Deputy Prime Minister for Economic Affairs and Minister of the Ministry of Economy and Finance, presides over the first meeting of the Task Force to Strengthen Service Industry Competitiveness at the FKI Conference Center in Yeongdeungpo-gu, Seoul on the 2nd. /Courtesy of Ministry of Economy and Finance

To boost regional tourism, the government will implement a "half-price travel" program that refunds half of the expense when traveling to rural and fishing depopulation areas, and strengthen domestic travel expense support by introducing new discounts for consecutive-night stays and island accommodations. It will also push to create a 200 billion won "regional tourism fund" by combining fiscal and private capital.

The Ministry of Economy and Finance and the Ministry of Culture, Sports and Tourism announced a "plan to promote regional tourism revitalization" at the first meeting of the "task force (TF) on strengthening service industry competitiveness" held on the 2nd. The idea is to shift tourism from a Seoul metropolitan-centered structure to a multi-polar system that grows with the regions, while also addressing the problem of local extinction.

First, incentives for domestic travel will increase significantly. Currently, when traveling to rural and fishing depopulation areas, the government refunds half of the travel cost within a limit of 100,000 won for individuals and 200,000 won for groups in the form of local love gift certificates. It plans to expand the number of areas where such "half-price travel" is available to 20 by 2026.

Accommodation discounts will also be diversified. In addition to existing lodging coupons, the government will introduce a "consecutive-night stay discount" that provides a 70,000 won discount (based on a 140,000 won room rate for consecutive nights) for stays in non-capital regions, and an "island accommodation discount" that provides a 50,000 won discount (based on a 70,000 won room rate) on major tourism-specialized islands outside the capital area.

The "tourism resident system" to expand the tourism-type daily population in depopulation areas will also be fully implemented. This system provides travel-related benefits to nonresidents. In all 89 depopulation areas, national and public facilities will be discounted, and local love gift certificates will be provided through tourism resident points.

For workers, the "half-price vacation" program, which supports 400,000 won in annual vacation expenses by having the government, corporations, and workers each contribute 100,000 won, 100,000 won, and 200,000 won, will expand its target from 65,000 people this year to 100,000 people next year.

A "regional tourism fund" will also be launched. By combining a 20 billion won fiscal investment in 2026 with private capital and financial techniques, the government plans to create a 200 billion won fund. Through the fund, the government will pursue large-scale infrastructure projects such as lodging, resorts, performance venues, and MICE. To encourage private participation, it will prepare incentives such as deregulation (exemption from preliminary feasibility studies, simplified permits and approvals), sharing investment risk, and low-interest loan support through special guarantees.

The government also plans a sweeping overhaul of tourism laws for the first time in about 50 years. It will completely revamp the Framework Act on Tourism and the Tourism Promotion Act, enacted in the 1970s and 1980s, and split them into the "Tourism Industry Act" and the "Regional Tourism Development Act." The Tourism Industry Act will establish a support system to foster tourism as a strategic industry, while the Regional Tourism Development Act will set out the basis for creating and supporting regional tourism zones.

Meanwhile, the "operating direction of the TF for strengthening service industry competitiveness," which will support this plan, was also finalized at the meeting.

The TF, previously a vice-ministerial consultative body, was elevated to a public-private joint body chaired by Koo Yun-cheol, Deputy Prime Minister and Minister of the Ministry of Economy and Finance. Major business groups such as KORCHAM, the Korea International Trade Association, and the Korea Federation of Small and Medium Enterprises, along with private experts, will participate to quickly reflect voices from the field and prepare support measures through coordination among relevant ministries.

In principle, the TF will hold regular meetings once every half-year and operate task groups by function and industry, including content, tourism, health care, ICT, and logistics. Each task group will review proposals from business organizations to devise support measures, and then finalize and announce the plans through meetings of the ministers in charge of economic affairs, among others.

Deputy Prime Minister Koo said, "We will draw up within the year a plan to push a 'regional tourism leading project' to foster global-level tourism zones outside Seoul," adding, "Next year, we will select about two leading zones and provide package support for fiscal investment, tourism program development, and regulatory improvements."

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