Desperate Government for 'Reviving the Economy'... Record-Breaking 'Kosepe' as an Opportunity for Domestic Demand Revival

Over 1,600 Companies Participate 'Largest Ever'... Manufacturing Industry Triples Compared to Previous Year
Prime Minister Jeong Sye-gyun, Lotte Chairman Shin Dong-bin, Kang Ho-dong, and Others All Attend

The streets of Myeongdong, Seoul, on the first weekend of Korea Sale Festa last November 3. This year, it will be held non-face-to-face. Photo by Moon Honam munonam@

[Asia Economy Reporter Moon Chaeseok] As attention focuses on whether South Korea's economy will rebound in the fourth quarter, the largest-ever Korea Sale Festa (Kosepe) will begin tomorrow. The government has been making every effort to boost the atmosphere since the opening ceremony was held yesterday.

The Ministry of Trade, Industry and Energy announced that the Kosepe opening ceremony was held on the 31st at 2 p.m. at the 'Seoul ON' studio in Seoul City Hall. The Kosepe Promotion Committee hosts the event, supported by the government and 17 metropolitan cities and provinces nationwide.

Prime Minister Jeong, Chairman Shin, and Key Figures from Politics and Business Gather

Kosepe will be held online and non-face-to-face for two weeks from the 1st to the 15th of next month, considering the COVID-19 situation.

More than 100 people, including Kim Yeonhwa, Chairperson of the Kosepe Promotion Committee, industry representatives, citizen participants, and special guests, joined the opening ceremony both on-site at the studio and via video conference.

Special guests who appeared at the event included Prime Minister Jeong Seye-gun, Minister of Trade, Industry and Energy Sung Yun-mo, Minister of Culture, Sports and Tourism Park Yang-woo, Lotte Group Chairman Shin Dong-bin, and promotional model Kang Ho-dong.

Minister of SMEs and Startups Park Young-sun, Governor of Gangwon Province Choi Moon-soon, and Governor of Jeju Special Self-Governing Province Won Hee-ryong also participated via video conference.

An official from the Ministry of Trade, Industry and Energy explained, "This opening ceremony was the first time since Kosepe's inception that the public participated together in the event."

The citizen participation group was composed of university students, newlyweds, influencers, and others selected through an online contest targeting industry workers from traditional markets and marts as well as the general public.

Diversification in IT, Automobiles, Furniture, etc... Sequential Resumption of Consumer Coupons Announced

Lotte Hi-Mart will hold the "Cheer Up Korea" special exhibition, which includes "Hi-Mart ON Day" on the 1st of next month as part of the "2020 Korea Sale Festa" (Kosepe). This Kosepe features special exhibitions of various products, including not only miscellaneous goods but also IT and home appliances. (Image source=Yonhap News)

This year's Kosepe is characterized by a diverse lineup of items including automobiles, electronics and IT, fashion, and furniture.

On the 30th, Kim Yong-beom, Second Vice Minister of the Ministry of Economy and Finance, said, "Special exhibitions targeting representative consumer goods directly related to people's daily lives, such as fashion, automobiles, and electronics/IT, will be held at Kosepe, which is expected to enhance the perceived discount rate among the public."

The Ministry of Trade, Industry and Energy announced that 971 manufacturing companies will participate this year, showcasing IT products such as home appliances and smartphones. This is about three times more than last year's 345 companies.

From the 1st of next month, special discount events for representative consumer goods such as clothing, cosmetics, furniture, and tableware will be held under the leadership of the private sector.

Additionally, based on active support from related ministries and 17 cities and provinces, various distinctive events will be held.

Source: Ministry of Trade, Industry and Energy

As the government has announced the sequential resumption of consumer coupons, interest is focused on whether the event will be successful.

Vice Minister Kim said, "Since mid-August, seven sectors' consumer coupon projects that had been suspended have been sequentially resumed since October 22. As of today, coupons for exhibitions, performances, movies, travel, and dining have been resumed, and coupons for sports (on the 2nd) and accommodation (on the 4th) will soon be resumed."

The Ministry of Trade, Industry and Energy also stated, "At the pan-government level, all available resources will be mobilized, including the resumption of consumer coupons, raising the income deduction limit, reducing automobile acquisition tax, and easing the obligation for distribution industry to share promotional costs."

Government: "Kosepe, a Spark for Economic Rebound"

Seoul Seodaemun-gu Sinchon Yonsei-ro... / Photo by Honam Moon munonam@

Since private consumption growth, which was boosted by emergency disaster relief funds in the second quarter, declined again in the third quarter, the government is desperate for a rebound in the fourth quarter. They hope Kosepe will serve as a momentum for revitalizing domestic demand.

Earlier, on the 27th, the Bank of Korea announced the real GDP growth rate for the third quarter (July to September) at 1.9%, stating, "Private consumption decreased by 0.1% compared to the second quarter."

This was due to the resurgence of COVID-19 centered around Seoul and the metropolitan area since mid-August, leading to social distancing level 2.5 and other quarantine measures that suppressed consumption.

Minister Sung said, "We will do our utmost together with the industry to keep Kosepe alive as a spark for economic rebound through consumption and domestic demand recovery."