Interest Grows Over Possible Temporary Holiday on October 10
Analysis Suggests Limited Economic Impact Due to Overseas Travel
With a golden holiday period anticipated in October, as the Chuseok holiday coincides with National Foundation Day and Hangeul Day, attention is focused on whether October 10 will be designated as a temporary holiday.
If October 10 is designated as a temporary holiday, adding the weekend would allow for a maximum of 10 consecutive days off. Screenshot from Naver Calendar
According to the Aerospace Administration’s calendar guidelines released on June 16, this October’s Chuseok holiday will create a seven-day break, starting with National Foundation Day on the 3rd, followed by Saturday the 4th, Chuseok from the 5th to the 7th, a substitute holiday on the 8th, and Hangeul Day on the 9th. If Friday the 10th is designated as a temporary holiday, adding the weekend of the 11th and 12th would result in a ten-day holiday period.
Previously, the government has designated temporary holidays to stimulate domestic demand and to guarantee the public’s right to rest.
However, recent analysis suggests that the economic impact of temporary holidays is limited. A report published by the National Assembly Research Service on June 12, titled "The Pros and Cons of Designating Temporary Holidays: The Reality and Limitations of Stimulating Domestic Demand and Guaranteeing the Right to Rest," pointed out that as more people travel abroad, the link between temporary holidays and domestic demand stimulation is gradually weakening.
In fact, when January 27 was designated as a temporary holiday, extending the Lunar New Year holiday from three to six days, there was no clear effect on boosting domestic demand. The number of outbound tourists in January reached 2,973,000, up 7.3% from the previous year and the highest monthly figure ever recorded, while domestic tourism spending in January was 3 trillion won, down 1.8% from the previous year. As travel demand shifted overseas, small business owners did not benefit from the special demand usually created by temporary holidays.
On September 13 last year, one day before the Chuseok holiday, the duty-free area of Terminal 1 at Incheon International Airport was bustling with crowds heading abroad for the holiday period. Photo by Jo Yongjun
It was also found that temporary holidays have a negative impact on exports and production. In January, the extended Lunar New Year holiday reduced the number of working days to 20, four days fewer than the previous year. As a result, exports in January totaled 49.13 billion dollars, down 10.2% from the previous year. Industrial production in January also declined across most sectors, including manufacturing, services, and construction, falling by 1.6% compared to the previous month and by 3.8% compared to the same month the previous year.
The Research Service noted, "Since the overall economy is not performing well, the decrease in production cannot be attributed solely to the long holiday period including the temporary holiday, but the reduction in working days likely had some impact."
The fact that not everyone can benefit from temporary holidays is also a problem. Under the current Labor Standards Act, businesses with fewer than five regular employees are not subject to temporary holidays. As of 2024, about 10 million people, or roughly 35% of all employed persons, are still excluded from holiday benefits.
The Research Service stated, "For a significant portion of our citizens, temporary holidays may be nothing more than a pie in the sky," and added, "The government should carefully consider not only the impact on domestic demand but also the effects on exports, production, and the broader economy when deciding whether to designate a temporary holiday."
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