Shoppers who use Onnuri gift vouchers at traditional markets will receive benefits worth 10% of their spending, combining a purchase discount with a rebate, while the rate will be 8% at neighborhood commercial districts outside the capital region.
Lee Hyoung-il, deputy prime minister and minister of finance and economy, discussed the plan on the 1st as he chaired his first meeting of the Emergency Economy Headquarters, held jointly with the ministerial meeting on economic affairs, at the Government Complex Seoul after taking office. The benefit at traditional markets will rise to 10%, made up of a 5% discount at purchase and a 5% rebate on the amount paid. The previous benefit was 7%. At neighborhood commercial districts outside the capital region, the rate will be 8%, combining a 5% discount and a 3% rebate. "We will make sure the warm winds of economic recovery spread evenly across people's daily lives," Lee said. "We will do everything we can to close gaps between regions, industries and generations and to ease polarization."
The government will also expand where the vouchers can be used to areas surrounding traditional markets. Commercial areas within one kilometer of a traditional market will receive preferential treatment in meeting the requirements for designation as an "alley-type shopping street," allowing them to be added to the list of places where the vouchers are accepted. Currently, at least 15 stores must be clustered within a 2,000-square-meter area, but the threshold will be differentiated to a range of 15 to 30 stores depending on a local government's fiscal independence, with the 15-store standard applied near traditional markets. Beyond rebates, the government will also work to link voucher spending to regional tourism by tying the vouchers to admission tickets for local attractions and accommodation coupons.
The government will also sharply ease permitting and construction rules that have held back corporate investment. For Hyundai Motor's 4 trillion won ($2.8 billion) project to convert its Ulsan plant for electric vehicle production, the permitting period will be shortened from three years to within one year by conducting various impact assessments simultaneously and running advance consultations with local governments in parallel. For semiconductor fab construction, electrical and telecommunications works that must now be ordered separately will be allowed to be ordered together, and procedures for cylinder cabinets used in chip manufacturing, which required a separate change permit for each additional installation, will be simplified so that future volumes can be approved at once. Including these steps, the government plans to accelerate 7.9 trillion won ($5.6 billion) worth of on-site investment that companies want to make but that has been delayed.
"Rather than settling for the opportunities we have now, we will trim the sails for growth to accelerate further and bring about a rebound in the potential growth rate," Lee said. He added that the government will pursue large-scale future investments, including three mega-projects, while resolving on-the-ground obstacles that block investment "to create the world's best business environment, one brimming with creativity and vitality."
On recent economic conditions, Lee said both export and domestic demand indicators are improving. "Despite difficult external conditions, including the war in the Middle East, our economy is on a more solid growth path than at any other time," he said. "Exports posted a record monthly high in September and are expected to top $1 trillion for the full year for the first time ever." He added that "investment, consumption and employment are also improving with a lag, bringing growth in the 3% range this year and per capita national income of $40,000 into sight."
