[Asia Economy Reporter Kim Heung-soon] The government has proposed resuming the issuance of eight major consumption coupons following the downgrade to social distancing level 1, but it is still deliberating over the issuance of coupons in the tourism sector, including accommodation and travel. This is due to concerns that issuing coupons aimed at encouraging domestic travel could potentially reduce vigilance against COVID-19, as the trend of new COVID-19 cases remains unstable and authorities are advising people to refrain from hiking during the autumn foliage season to prevent the spread of the infectious disease.
The government announced at the recently held 18th Emergency Economic Central Countermeasures Headquarters meeting that it plans to implement measures to revitalize domestic consumption, including the issuance of the eight major consumption coupons, starting from the end of this month. The eight major consumption coupons refer to government-funded discount programs that partially cover expenses in sectors such as accommodation, tourism, performances, movies, exhibitions, sports, dining out, and agricultural and marine products.
Among these, there are significant concerns about resuming the accommodation and travel discount coupons promoted by the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization. The accommodation discount coupons are provided on a first-come, first-served basis to a total of 1 million people, consisting of 200,000 coupons worth 30,000 KRW each for accommodations priced at 70,000 KRW or less, and 800,000 coupons worth 40,000 KRW each for accommodations priced above 70,000 KRW. The funding is sourced from government budgets and partial contributions from participating businesses.
Initially, the coupons were scheduled to be issued starting August 14 for use in accommodation reservations during September and October, but issuance was suspended after just one week due to a surge in COVID-19 cases centered in the metropolitan area. A government official stated, "It is estimated that about 100,000 coupons were distributed during the initial issuance."
The budget for coupon issuance was secured through the third supplementary budget. Coupons must be issued and used for accommodation reservations and actual stays within this year, and considering that this process typically takes one to two months, the timeline is tight. The situation is similar for travel coupons, which offer a 30% discount on the product price to the first 150,000 people who make early reservations and prepayments for domestic travel products selected through a public contest.
Even if coupon issuance resumes this month, it will be challenging to use them by the end of the year, and with the ongoing unstable trend of COVID-19 cases, setting a date for issuance is reportedly difficult. According to the Central Disease Control Headquarters, as of midnight on the 18th, there were 91 new domestic COVID-19 cases, fluctuating around 100 recently.
The Central Disaster and Safety Countermeasures Headquarters is urging people to refrain from hiking during the peak autumn foliage season and from group travel due to concerns over the spread of COVID-19. Since issuing accommodation and travel discount coupons contradicts these recommendations, the government is hesitant to resume them compared to other consumption coupons. A government official said, "We are continuing discussions with health authorities regarding the timing of issuing the eight major consumption coupons," adding, "In the case of accommodation and travel coupons, even if the resumption is delayed, we plan to proceed with issuance after more careful consideration."
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