Multiplier Effect of Government and Corporate "Vacation Support Project" on Consumption
Project to Expand to 100,000 Participants This Year; Applications Open from the 30th
#Kim Jisoo (34), an employee at a small-to-medium-sized company in Seoul, went on a domestic trip for the first time last summer through the Worker Vacation Support Project. Although she felt considerable pressure about taking time off, she decided to participate after learning that if she contributed 200,000 won, both the government and her company would each add 100,000 won. Kim said, "Thanks to this system, I was able to enjoy my trip in a more planned way, and I experienced positive changes not only in my life satisfaction but also in my work efficiency."
The Worker Vacation Support Project, which the government has implemented since 2018, is showing tangible results. The initiative, which aims to promote a culture of freely taking vacation days in the workplace, enhance work-life balance for employees, and boost domestic travel, is being rapidly adopted in the field.
According to the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization on January 29, since its introduction, the Worker Vacation Support Project has attracted a cumulative 790,000 workers and 83,000 companies, generating a total of 283 billion won in travel spending. The number of participants and the scale of spending have increased every year, demonstrating the sustainability of the policy.
This project is structured so that both the government and companies jointly support employees’ domestic travel expenses. If an employee pays 200,000 won, the company and the government each add 100,000 won, accumulating a total of 400,000 won, which can be used for domestic travel expenses. A key feature of the program is that it lowers the barrier to participation by adjusting the cost structure, rather than leaving the use of vacation time entirely up to individual choice.
The Korea Tourism Organization’s “2023 Worker Vacation Support Project Status Survey” shows the program’s clear effect on stimulating consumption. During the period of participation, the average number of days spent on domestic tourism was 4.5 days, and the average number of trips was 2.5, up by 0.2 days and 0.1 trips, respectively, compared to the previous year. The average total travel expenditure was 886,725 won, about 8.9 times the government subsidy. This indicates that the program is not merely providing subsidies but is effectively driving private consumption.
Responses from both companies and employees have been generally positive. Among participating companies, 91.4% reported improved employee satisfaction, and 80.6% noted enhancements in corporate welfare. The intention among employees to participate again was also high at 91.5%, demonstrating that the program is creating a virtuous cycle of repeated participation rather than being a one-off support measure.
This year, the Ministry of Culture, Sports and Tourism and the Korea Tourism Organization plan to expand the program to 100,000 participants, with company recruitment starting on January 30. Participating companies will receive additional points and performance recognition when applying for government certifications such as Leisure-Friendly Certification, Family-Friendly Certification, and Work-Life Balance Excellence. Companies selected as outstanding participants will also be eligible for government awards and promotional support. Alongside recruitment, promotional events to boost consumption will be held. Targeting the Lunar New Year holiday, the Korea Tourism Organization will offer up to a 50% discount, capped at 50,000 won, on domestic travel products such as accommodation, transportation, and travel packages through the Vacation Shop, and additional points will be given to those who participate in vacation planning surveys.
Park Beomseok, Head of the Tourism Welfare and Safety Center at the Korea Tourism Organization, said, "We will focus on increasing employees’ access to domestic travel through products and promotions that reflect current travel trends."
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