Traditional markets get more support
In a bid to revitalize Korea’s traditional markets ahead of the Chuseok harvest holiday, Knowledge Economy Minister Choi Kyung-hwan signed an agreement yesterday with private merchant representatives to purchase 13 billion won ($11.04 million) worth of gift certificates that can be used in traditional markets nationwide.
The so-called “onnuri gift certificates” were first introduced by the government in July last year to boost the nation’s real economy.
A total of 37.8 billion won worth of certificates were sold in the 12 months before July, of which 6.9 billion won were purchased during last year’s Chuseok period.
Twelve large conglomerates, including Hyundai Motor Group, SK and LG, purchased gift certificates worth 5.8 billion won during this year’s Lunar New Year holiday.
For this year’s Chuseok, large conglomerates will purchase 4.5 billion won of the gift certificates. Another 4.5 billion won will be purchased by public firms including the Korea Electric Power Corporation, 2 billion won by financial institutions, and 2 billion won by individuals.
“Boosting the sales of onnuri certificates used in traditional stores will make the upcoming Chuseok holiday abundant for all people,” the minister said yesterday while visiting the Mangwon Market in Mapo District, northern Seoul.
Choi met with private merchants and asked them about the difficulties they have in promoting their businesses.
Executives and officials from the Korea Merchant Association, the Federation of Korean Industries, the Korea Chamber of Commerce and Industry, and the Korea Electric Power Corporation accompanied the minister.
Traditional stores have had a hard time coping with the growing number of large corporate-owned discount stores opening in neighborhoods.
Especially during the national holiday season, large discount stores tend to be crowded with consumers shopping for groceries, whereas traditional markets are nearly empty.
Private merchants have raised complaints that they should be given more support by the government to compete with the larger supermarkets.
By Lee Eun-joo [[email protected]]
