"Reviving Domestic Demand" FKI and Korea Federation of SMEs Join Forces... Launch Domestic Vacation Campaign

The Federation of Korean Industries (FKI) and the Korea Federation of SMEs signed a business agreement on July 7, 2025, at the Korea Federation of SMEs building in Yeouido, Seoul, to boost domestic demand and support the recovery of local economies. This is the first time the two organizations have taken joint action to revive the livelihood economy since the launch of the new administration.

Through this agreement, both parties agreed to cooperate on several initiatives: a campaign to promote domestic vacations, revitalization of local commercial districts through the use of local currency and Onnuri gift certificates, and the spread of the Work and Vacation (a workation system that combines work and vacation) program. Ahead of the summer vacation season, they plan to focus on encouraging domestic travel among employees of both large corporations and small and medium-sized enterprises.

Ryu Jin, Chairman of FKI, stated, "It is highly significant that the business community is coming together to support people's livelihoods at a time when local economies are facing a crisis." Kim Ki-moon, Chairman of the Korea Federation of SMEs, also said, "A privately-led campaign can provide real support for the recovery of the livelihood economy."

Earlier, on July 1, FKI encouraged its member companies to participate in related policies by recommending the use of annual leave, holding domestic workshops, and converting overseas training programs to domestic alternatives.

The government is currently operating several programs to promote domestic travel, including the Worker Vacation Support Program, which uses a joint savings model involving the government, companies, and workers; the Digital Tourism Resident Card, which offers discounts on accommodation and food and beverages; the Summer Accommodation Sale Festa, which provides discounts on accommodations outside the Seoul metropolitan area; a rural tourism pass focused on regions facing population decline; and the Local Love Railway Travel program, which supports train fares.

Lee Sangho, Head of the Economic and Industrial Division at FKI, stated, "We will continue to expand activities such as the K-Vacance campaign that can contribute to the livelihood economy."