People step out of a train at Seoul Station, Feb. 8, 2024, after visiting their hometowns during the Lunar New Year holidays. Korea Times photo by Lee Han-ho

The government and the ruling People Power Party (PPP) decided to offer up to a 40 percent discount on KTX and SRT (high-speed rail services) fares for passengers traveling from the provinces to the Seoul Metropolitan area during the Lunar New Year holiday, aiming to boost domestic tourism, officials said Thursday.

In addition, the government will offer 400,000 won ($274) in domestic travel subsidies to 150,000 workers at small and medium-sized companies.

These initiatives are part of the government and ruling party's efforts to stimulate sluggish domestic spending amid a deepening economic slump.

"It is a plan to revitalize local tourism during the Lunar New Year holiday from Jan. 27 to 31 and to support a smooth journey home for people," the PPP said. "We decided to enhance transportation convenience, such as providing parking at local government buildings and public institutions, while also opening various historical sites, including palaces and tombs, for free and offering a range of cultural events."

Industry insiders expressed cautious optimism about the policy's potential to revitalize domestic tourism.

"The ongoing political turmoil has significantly weakened Koreans' consumer sentiment toward both domestic and outbound travel," said a tourism industry official, who wished to remain anonymous.

"While consumers may welcome the government's price stabilizing efforts and policies, ultimately, it remains questionable whether such policy support can be of great help to revitalize domestic travel without any fundamental change in the political situation," he said.

Stabilizing food prices

The two sides also agreed to take an active role in supporting the government's efforts to stabilize people's livelihoods by supplying 1.5 times the usual amount of holiday-related foodstuffs.

Demand for vegetables, fruits, eggs, and other food items typically rises ahead of the Lunar New Year and Chuseok holidays, as people prepare meals for family gatherings.

"The price of radishes has increased by 84 percent, cabbages by 64 percent, and pears by 25 percent year-on-year," said PPP Floor Leader Rep. Kweon Seong-dong, calling for the "active use of policy loans."

Ruling People Power Party Floor Leader Rep. Kweon Seong-dong, second from left, speaks during a party-government council meeting at the National Assembly in Seoul to boost domestic consumption, Thursday. Yonhap

Ahead of the Lunar New Year holiday, the government announced plans to significantly increase the supply of high-demand goods and implement various measures to boost consumption in order to stabilize prices.

"We will increase the number of Lunar New Year products by 1.6 times the usual amount to ensure sufficient supplies," said Agriculture, Food, and Rural Affairs Minister Song Mi-ryung.

"The ministry will focus on the government's stockpile and contract cultivation of agricultural products… and also offer the largest-ever discount on agricultural products to reduce the burden on consumers," she said.

Minister of SMEs and Startups Oh Young-ju promised to issue 5.5 trillion won worth of "Onnuri" gift certificates that can be used in traditional markets to help revitalize local businesses.

"We will promptly supply 26.5 trillion won in policy loans this year, including 1.7 trillion won during the Lunar New Year holiday, to address the financial difficulties of small business owners," she said.

Minister of Maritime Affairs and Fisheries Kang Do-hyung offered to implement various measures to ease the burden on consumers, "such as expanding the supply of stored marine products and supporting price discounts."

Tourists take in the view from the top of Mount Nam in Seoul, Monday. Yonhap