Hyundai Motor Group, the nation’s second-largest conglomerate, unveiled its plans to boost domestic consumption Tuesday.
“The company has developed the measures to increase domestic demand at the group level and to help self-employed small businesses,” the automotive group said in a press release.
Hyundai’s move came one day after the government sent an 11.8 trillion won ($10.5 billion) supplementary budget bill to the National Assembly to revitalize the sagging economy.
Amid falling exports, concerns about the economic downturn have grown since the outbreak of Middle East respiratory syndrome dealt a blow to domestic demand and tourism-related industries in May.
“In an effort to facilitate visitors and spending at home, the group will hold its global gatherings to be scheduled between July and November in Korea,” the company said.
As the fifth-largest global car manufacturer, Hyundai’s two auto brands –Hyundai and Kia — have hosted large-scale internal events and seminars at different cities in the world, targeting overseas dealers, key customers, and employees.
The automotive group, in particular, will invite Chinese dealers and employees to Korea in an effort to win bank Chinese visitors, who had given a big hand to the domestic sales in many sectors before the virus outbreak.
The conglomerate has launched a group-level campaign to encourage executives and employees to select local cities for their summer vacation this year rather than overseas trips.
To increase sales at small stalls in traditional markets, the carmaker will purchase 10 billion won ($8.84 million) worth of gift cards that can be used only in traditional markets.
Industry watchers said other conglomerates are expected to announce similar measures to help the government to boost domestic consumption on the heels of the nation’s top two conglomerates.
Last week, Samsung Group initiated in developing a set of measures to support people or industries in need, including the tourism industry and farmers suffering from a severe drought.
The Federation of Korean Industries, the association of big businesses, launched a campaign titled “summer vacation in local cities,” with its member firms in an effort to lift the domestic sales.
By Seo Jee-yeon (jyseo@heraldcorp.com)
