Boosting Local Economy Through Year-End and New Year Domestic Demand Stimulation
Accelerated First-Half Execution Expected to Spur Economic Recovery
Jeju Special Self-Governing Province is implementing measures to restore the local economy and stabilize livelihoods.
With local consumer sentiment in Jeju rapidly shrinking due to recent domestic uncertainties, the provincial government has prepared measures to boost year-end and New Year consumption and stimulate the economy.
Jeju Province will promote domestic demand by injecting fiscal resources and strengthening support for small business owners. In addition, a consumption promotion campaign involving local residents will be launched to revitalize the local economy.
First, the previously suspended Tamnaneujeon point accumulation support program has been resumed using reserve funds. The plan is to apply a 10% point accumulation rate until next year's Lunar New Year to stimulate local consumption.
A total of 73 "Busking Day" events will be held around commercial districts in Jeju City and Seogwipo City during the year-end and New Year period. This is intended to expand cultural opportunities for residents and invigorate the stagnant local commercial districts.
The 32nd Seongsan Ilchulje Festival and various sunrise events, as well as other scheduled local festivals and events, will proceed as planned. In addition, on-site cashback events for agricultural and livestock products will be held at traditional markets for the Lunar New Year, aiming to boost sales and consumption for traditional markets and small business owners.
Jeju Province will also significantly expand fiscal support for employment- and finance-vulnerable groups.
The number of public work positions in the first half of the year will be increased by 270 compared to last year, reaching 1,697, with selection to be completed before the Lunar New Year. Selected personnel will work for up to five months from February to June next year.
Support for low-income and low-credit finance-vulnerable groups facing economic crisis will be strengthened. The beneficiaries of the policy microfinance interest subsidy program will be expanded from youth to all residents, and next year's financial inclusion fund will operate at a total scale of 2.6 billion KRW.
The requirements for management stability loans from the SME Development Fund will also be eased. If actual income decreases by more than 10% even when sales increase, the support period will be extended by two years by changing the loan support requirements, which were previously based on sales figures.
Additionally, the temporary interest subsidy support for low-credit small business owners will be extended by six months, allowing about 3,000 people to benefit.
Jeju Province will also work to stimulate the economy by expediting next year's fiscal execution and expanding local companies' contract opportunities.
The province is making every effort to ensure that 90% of this year's allocated budget is executed within the year, and plans to execute 60% of next year's total budget in the first half, so that public finances can play a key role in revitalizing the local economy.
In particular, large-scale fiscal investment will be made in the social overhead capital (SOC) sector to boost the construction industry and revitalize the local economy. In the first half of the year, a total of 2.12 trillion KRW will be intensively allocated and more than 60% executed for infrastructure expansion such as roads and ports (1.71 trillion KRW in the general account, an 8.8% increase from 2024, and 414.5 billion KRW in the water and sewage special account).
The construction of the Jeju Eastern Publicly Supported Private Rental Housing Supply Promotion District (319,000 m², 394.8 billion KRW) will begin in earnest, and a large-scale housing construction project targeting the designation of the Jeju Hwabuk 2 Public Housing District (924,000 m²) in the first half of next year will lead the recovery of the construction sector.
Opportunities for local companies to win contracts will also be expanded. For goods and service projects within the local restriction range (less than 330 million KRW), local restrictions will be applied first, and the evaluation of self-proposals in negotiated contracts will be implemented to actively strengthen local bidding restrictions.
The completion inspection and payment periods will be shortened, and the 50% reduction of contract-related deposits will continue, alleviating the management burden of local companies.
Meanwhile, Jeju Province, together with major local organizations, has agreed to carry out a consumption promotion campaign to revitalize local commercial districts and foster a positive atmosphere in the community.
Civil society organizations such as the Jeju Saemaul Association (Chairman Kim Changgi), the Jeju Province Council of the Movement for a Better Life (Chairman Jwa Jungun), and the Korea Freedom Federation Jeju Branch (Chairwoman Kim Yangok) will actively participate in revitalizing alley commercial districts by visiting traditional markets and shopping streets.
The Jeju Chamber of Commerce and Industry (Chairman Yang Moonseok), the Jeju Employers Federation (Chairman Han Bongshim), and the Korean Confederation of Trade Unions Jeju Regional Headquarters (Chairman Cho Soonho) will also actively participate in the year-end and New Year consumption promotion campaign to revitalize local commercial districts and work to spread the movement throughout the community.
Jin Myungki, Vice Governor for Administrative Affairs of Jeju Province, said, "As this is a time when policies that carefully support residents in need are required, we are focusing on restoring year-end consumer sentiment through the resumption of Tamnaneujeon point accumulation and the operation of busking events in local commercial districts," adding, "Next year, we will do our utmost to restore the livelihood economy through swift fiscal execution and consumption promotion campaigns in collaboration with the private sector."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
