KCCI Collaborates with Consumer Groups to Boost 'Consumer Sentiment Recovery'

Joint Declaration to Revitalize the Domestic Market
Strengthening Cooperation with Small Business Owners and Expanding Sales Channels
Launching Campaigns to Promote 'Well-Spent Consumption'

The Korea Chamber of Commerce and Industry (KCCI) is joining hands with the distribution industry and consumer groups to revive the frozen consumer sentiment.

On the 23rd, KCCI held the 'Joint Declaration and Policy Forum for Revitalizing the Domestic Market' together with nine distribution associations and the Consumer Organizations Council. The distribution associations include the Korea Chain Store Association, Korea Department Store Association, Korea Convenience Store Industry Association, Korea Online Shopping Association, Korea Franchise Industry Association, Korea Duty-Free Shop Association, National Merchants Federation, Korea Supermarket Cooperative Federation, and Korea Super Chain Distribution Cooperative Federation.

This event was organized to respond to the domestic market slump, as the consumer sentiment index has dropped sharply to its lowest level since COVID-19, and sales in local commercial districts including supermarkets and traditional markets continue to decline.

In fact, the 'Consumer Sentiment Index' announced by the Bank of Korea fell significantly from 100.7 in November last year to 88.2 in December, indicating a sharp contraction in consumer sentiment. First, the distribution industry plans to inject vitality into the consumer market by focusing various sales events and promotions in the first half of the year, starting with the Lunar New Year holiday, to revive the sluggish domestic economy.

Exterior view of the Korea Chamber of Commerce and Industry. Provided by the Korea Chamber of Commerce and Industry, Yonhap News Agency.

In addition to sales events, efforts will be made to revitalize local commercial districts by introducing brands suited to regional characteristics and strengthening cooperation with small business owners. They also plan to promote tourism consumption targeting tourists and support the expansion of sales channels for excellent small and medium-sized enterprises.

Furthermore, under the recognition that 'well-spent consumption' rather than 'unused consumption' invigorates the economy, various campaigns will be launched to spread a rational and sound consumption culture. The policy forum also provided a platform to discuss policies for activating consumption during recessions and ways to improve consumer sentiment.

Professor Choi Ja-young of Soongsil University emphasized in her presentation, "It is important to prepare effective policy measures by analyzing past cases from multiple perspectives," adding, "Differentiated policies are needed, such as expanding social safety nets and self-reliance foundations for low-income groups, and inducing consumption through indirect tax reductions for high-income groups."

Gu Jin-kyung, a senior researcher at the Korea Institute for Industrial Economics and Trade, who participated in the discussion, added, "It is urgent to promote the revitalization of sectors where complex consumption occurs, such as the tourism industry, and to provide practical support measures to maximize the effects of large-scale consumption promotion events like the Korea Sale Festa."

Along with this, various policy proposals for consumption activation were presented, including expanding support for purchasing high-efficiency home appliances, increasing discount coupons for agricultural, livestock, and fishery products, expanding accommodation and dining coupons, and broadening the usage of Onnuri gift certificates and local currencies.

Park Il-jun, Executive Vice Chairman of KCCI, said, "For the private sector's efforts to activate consumption to bear fruit, bold policy support from the government is urgently needed," adding, "If effective support policies such as tax and fiscal support are promptly implemented, they will serve as a catalyst for revitalizing the domestic market."