As signs emerged that consumer spending is weakening due to inflation driven by the Middle East war, the government on the 28th rolled out measures to boost consumption, including a plan to reimburse half of public transportation fares used while traveling to 14 population-declining areas.
The government will invite applications to select target areas for the half-price public transportation support from among the 89 population-declining areas nationwide. Population-declining areas currently include Yeongwol, Pyeongchang, and Hoengseong in Gangwon Province; Jecheon in North Chungcheong Province; Geochang, Hapcheon, Hadong, Miryang, and Namhae in South Gyeongsang Province; and Gochang, Yeonggwang, Yeongam, Gangjin, Haenam, Wando, and Goheung in South Jeolla Province.
The government reported the "eco-friendly green consumption and tourism boom-up plan" at a Cabinet meeting on the 28th. The aim is to save energy by promoting eco-friendly consumption while reviving the economy. The consumer sentiment index in March was 107, down 5.1 points from the previous month. It was the largest drop since December 2024, when martial law was declared.
◇ Reimburse 50% of public transportation fares with local love gift certificates
Starting in the second half, travelers to 14 population-declining areas will be reimbursed 50% of their public transportation expense with local love gift certificates. The government is expanding the scope of the "half-price travel" support from meals, experiences, and lodging spending to transportation fares. In addition to small and medium-sized enterprise workers and small business owners, mid-sized enterprise workers will newly receive half-price travel benefits.
The number of lodging coupons usable in population-declining areas outside the greater Seoul area will increase from 200,000 to 500,000. The lodging coupons are 20,000–70,000 won discount vouchers for lodging fees. The Ministry of Culture, Sports and Tourism will issue them to first-come, first-served applicants every day at 10 a.m. until the 10th of next month. The usage period for the lodging coupons is extended from this month to early next month.
For the government and public institutions, annual leave will be encouraged in May, and compensation for unused leave for public officials will be paid early.
◇ Up to 40% off fruit, vegetables, and chicken... recognize Onnuri gift certificate spending as an expense
In May–June, discount events for agricultural, livestock, and fishery products will be held at large supermarkets and online. With a budget of 22 billion won, the government will offer discounts of up to 40% on open-field vegetables, greenhouse fruit vegetables, and chicken. Eggs will be discounted 1,000 won per tray of 30. Premium Korean beef, known as hanwoo, and Korean pork will also be discounted both online and offline.
The discount rate for digital Onnuri gift certificates will be expanded from 7% to 10% from the 1st to the 5th of next month. In addition, to encourage corporations to expand purchases of goods using Onnuri gift certificates, the expenditure amount will be recognized as a business promotion expense under tax law. This will reduce the tax base and thereby decrease taxes.