South Korea launches massive government-wide discount festival to boost domestic spending

South Korea is launching a massive nationwide consumer festival that brings together discount campaigns from across government ministries, with more than 40,000 companies taking part. The event is expected to inject new energy into struggling local commercial districts and small businesses by linking product discounts with cultural and tourism programs.

The government announced it will hold the second Korea Grand Festival — known by its Korean acronym "Kogpe" — for 18 days from Thursday through Nov. 15, to stimulate domestic demand and revive local commerce. The plan was reported at a Cabinet meeting Tuesday. Singer Song Ga-in and broadcaster Daniel Lindemann will serve as promotional ambassadors for the event.

The Korea Grand Festival consolidates discount campaigns that individual ministries had previously run separately into a single national consumer event. When the inaugural edition was held last year, integrating the event periods and offering linked benefits produced a 2.3 percentage point increase in retail sales growth compared with running the campaigns independently. This year, the number of participating companies has been expanded to around 40,000, and the program connects spending with small commercial districts and tourism and cultural programs so that consumer activity translates into higher sales for small and medium-sized enterprises and small business owners.

Participating programs include the Together Festival (Ministry of SMEs and Startups), K-Sale Festa (Ministry of Trade, Industry and Energy), Accommodation Sale Festa (Ministry of Culture, Sports and Tourism), kimchi ingredient discounts and Korean beef sales (Ministry of Agriculture, Food and Rural Affairs), seafood festivals (Ministry of Oceans and Fisheries), Korea Duty Free Festa (Korea Customs Service) and a postal shopping sale (Ministry of Science and ICT).

The festival will expand discounts on major items that consumers feel most directly. South Korea's five domestic automakers along with Samsung Electronics, LG Electronics and other major home appliance manufacturers will offer discounts on popular models and products starting Sunday, with certified used vehicles from Hyundai Motor and Kia joining the event for the first time. Detailed discount rates by vehicle model and appliance category will also be announced Sunday.

Hypermarkets will offer up to 50 percent off or buy-one-get-one deals on agricultural, livestock and seafood products. Department stores will discount winter clothing by up to 50 percent and hold fashion brand promotional events. Five convenience store chains — GS25, CU, Seven-Eleven, E-mart 24 and CSPACE — will offer special prices on popular dosirak. Online platforms including Naver, Coupang Inc and Baemin will run promotional events for small merchants and offer discounts of up to 60 percent. Nine dining brands — including Yamsaem Kimbap, Jadam Chicken and Ten Percent Coffee — as well as Hanwha and Sono Resorts, Megabox and Lotte Cinema, and other leisure and cultural businesses will also take part.

Ahead of the kimchi-making season, cabbage, radish and other kimchi ingredients will be sold at up to 40 percent off, while Korean beef and major seafood items will be discounted by up to 50 percent. Mobile agricultural discount vouchers will also be available at a 20 percent discount.

Online sales support for small and medium-sized enterprises and traditional markets will also be strengthened. 11st and G-market will offer 20 percent discounts through flash deals and live commerce, while Hyundai Ezwel and Lotte On will discount products from more than 140 traditional market vendors by up to 30 percent.

Public participation benefits have also been expanded. During the event period, the national subsidy rate for local love gift certificates will rise by 5 percentage points — from 8 to 13 percent in the Greater Seoul area, from 10 to 15 percent outside it, and from 12 to 17 percent in areas with declining populations. Digital Onuri gift certificates will be sold at a higher-than-usual discount rate of 10 percent from Monday through Nov. 6.

A "mutual-benefit consumer lottery" worth a total of 1.7 billion won ($1.29 million) will run through Nov. 15. One entry ticket will be issued for every 30,000 won in cumulative Digital Onuri gift certificate payments, with double entries awarded for purchases made outside the Greater Seoul area — up to 10 tickets in the metropolitan area and up to 20 outside it. Prize money in Digital Onuri gift certificates will be awarded to a total of 5,600 winners, including first-prize winners (10 people) receiving 30 million won each and second-prize winners (40 people) receiving 2 million won each.

Nine credit card companies — KB, NH NongHyup, Lotte, BC, Samsung, Shinhan, Woori, Hana and Hyundai — will offer 10 percent cashback on purchases of 10,000 won or more at traditional markets, and a 10 percent billing discount on purchases of 30,000 won or more at century-old shops and Onuri-affiliated merchants.

Tour and discount events will be held across 159 local commercial districts nationwide, including Jinju Jungang Market. Cashback incentives and pop-up stores will be linked to visits to landmark local establishments such as Sungsimdang, Samjin Eomuk and Taegeukdang, encouraging customers to explore nearby alleyway commercial districts as well.

Programs to attract foreign tourists and connect them with local spending will also run during the event. The four main royal palaces — Gyeongbokgung, Changdeokgung, Deoksugung and Changgyeonggung — along with Jongmyo Shrine and the Joseon Royal Tombs will be open free of charge during the festival period, excluding regular closure days and the rear garden of Changdeokgung. Twenty-five duty-free shops across the country will offer discounts of up to 25 percent.

The government said it plans to use the Korea Grand Festival to continuously drive domestic demand while developing it into an international event that foreign visitors can also enjoy and participate in, with the goal of establishing it as South Korea's signature consumer promotion event.