The government will hold a large-scale consumption festival, the Korea Grand Festival, to boost domestic demand and revive local commercial districts. Korea Post will also join through Post Office Shopping, offering discounts on local specialties and selling deep-discount items.

The government said on Monday it will hold the second Korea Grand Festival for 18 days from Oct. 29 to Nov. 15.

The event integrates discount campaigns that had been promoted separately by each ministry. It includes the Ministry of SMEs and Startups' Win-Win Festival, the Ministry of Trade, Industry and Energy's K-Sale Festa, the Ministry of Culture, Sports and Tourism's Lodging Sale Festa, the Ministry of Agriculture, Food and Rural Affairs' discounts for agricultural and livestock products, and the Ministry of Oceans and Fisheries' Seafood Festival. Korea Post, under the Ministry of Science and ICT, will also join through a Post Office Shopping special sale.

About 40,000 companies will take part this year. Korea Post will run a one-day deep-discount sale on Oct. 29, the event's opening day, with limited quantities. During the event it will increase the number of special-sale sessions and discounted items, and provide dedicated coupons for a discount section for local specialties.

It will also prepare themed promotions timed to events such as Korean Beef Day on Nov. 1 and support for college entrance exam takers. It will run discount promotions for seasonal items such as tangerines and citron, and a "Tasty but Imperfect" promotion selling lower-grade farm produce at low prices. It will also run a "Taste and Try" event in which customers pay only shipping and write product reviews.

The private retail sector will also take part in discount events. Five domestic automakers, including Hyundai Motor and Kia, along with Samsung Electronics and LG Electronics, will sell major models and home appliances at discounted prices from Nov. 1. Large supermarkets will offer discounts of up to 50 percent on agricultural, livestock and fishery products and processed foods, while department stores will run discount events focused on winter clothing.

The government has also prepared additional benefits to encourage consumption. During the event, it will raise the discount rate for local love gift certificates by 5 percentage points, expanding it to 13 percent in the Seoul metropolitan area, 15 percent outside the capital region and 17 percent in areas with declining populations. From Nov. 2 to 6, it will raise the discount rate for digital Onnuri gift certificates to 10 percent from 7 percent. It will also run a "win-win consumption lottery" that will pay total winnings of 1.7 billion won to 5,600 digital Onnuri gift certificate users. The first prize is 30 million won.

It will also link the event with regional tourism and cultural events. It will hold an integrated opening event on Oct. 31 in Andong, North Gyeongsang Province, and run events at 159 local commercial districts and markets nationwide. During the event, it will open the four main palaces, Jongmyo shrine and royal tombs of the Joseon Dynasty for free, and offer discounts of up to 25 percent at 25 duty-free shops nationwide.

The government plans to support the event so it expands sales channels for small and medium-sized companies and small merchants, and so the consumption-boosting effect spreads across local commercial districts.