Passengers board a bullet train at Seoul Station to visit their family members during the Lunar New Year holidays, Feb. 8, 2024. Korea Times photo by Lee Han-ho

The government and the ruling People Power Party (PPP) decided, Wednesday, to designate Jan. 27 as a temporary holiday in Korea.

With the Lunar New Year holiday slated for Jan. 28 to 30, the designation will enable people to take a six-day break, from Jan. 25 to 30. If they take an additional day off on Jan. 31, they could enjoy up to nine days of holiday through Feb. 2.

According to officials, the decision is part of government efforts to boost domestic consumption.

"The government has agreed to designate Jan. 27 as a temporary holiday to boost the domestic economy and tourism during the Lunar New Year holiday," Rep. Kim Sang-hoon, the chairman of the PPP's policy committee, said during a briefing at the National Assembly in Seoul following a meeting with government officials.

"The government and the ruling party believe that it will play a role in improving people's quality of life as well as providing them with a chance to rest," he said.

The measure comes as consumer sentiment sharply declined due to political uncertainties, which were further exacerbated by President Yoon Suk Yeol's imposition of martial law on Dec. 3 and his subsequent impeachment.

According to the Bank of Korea, the Composite Consumer Sentiment Index stood at 88.4 in December, a decrease of 12.3 points from November. This marks the biggest drop since March 2020, when it fell 18.3 points during the COVID-19 pandemic.

Additionally, the country canceled and scaled down year-end and New Year's festivities as people mourn the tragic crash of a Jeju Air passenger plane last month, which claimed 179 lives.

"We hope that it will be a warmer and more relaxed Lunar New Year holiday, and we promise to take a closer look at the benefits of designating a temporary holiday," Kim said.

While the effectiveness of stimulating domestic spending remains uncertain, the anticipated economic impact of the temporary holiday is one of the few options the government has relied on.

Hyundai Research Institute estimated in 2020 that each additional national holiday will increase consumer spending by 2.1 trillion won ($1.4 billion) and create a production-inducing effect of 4.2 trillion won.

In recent years, temporary holidays were designated mostly to make long holidays by linking them with existing national holidays such as Liberation Day, Children's Day and National Foundation Day. Last year, Oct. 1, Armed Forces Day, was designated as a temporary break to honor the nation's armed forces, although it was not linked to any other holiday.