Samsung unveils measures to aid farming, tourism

Samsung Group on Thursday unveiled a set of new measures to support farming households and the tourism industry, both hit hard by a record drought and the outbreak of Middle East respiratory syndrome.

The plans come after Samsung Electronics vice chairman Lee Jay-yong, the de facto leader of South Korea’s largest conglomerate, apologized last week for mishandling the MERS outbreak at a group-affiliated hospital.

As part of the new plans, Samsung will purchase merchandise coupons worth 30 billion won ($27 million) to be used at traditional markets and offer them to employees at its suppliers and contractors ahead of the summer vacation season.

The group plans to purchase more coupons worth about 30 billion won during the Thanksgiving holiday in September.

In order to lure back tourists who are canceling their visits due to concerns over MERS, Samsung will invite high-performing employees at its Chinese and Southeast Asian operations.

More than 1,000 people will visit Korea through the reward program and almost half of them are expected to come from China, the group said.

According to government data, 254,254 Chinese visitors came to Korea in June, a 54.6 percent plunge from a year ago.

Samsung also encourages employees to take longer vacations and earlier than usual. To help domestic consumption, they are also encouraged to enjoy their vacation in Korea rather than traveling abroad.

Farm-to-table markets will be held at its 21 workplaces across the nation, including its Seoul headquarters, to sell agricultural products directly purchased from farming households.

The group expected the total sales to reach about 2 billion won.

“We have been weighing diverse ways to support the economy following the MERS outbreak,” said Lee Joon, Samsung’s communications chief. “We have come up with measures to encourage consumer spending more promptly.”

Starting with Samsung, more conglomerates are expected to join the government’s efforts to stimulate the economy.

Hyundai Motor Group announced similar plans on June 25, including a low-rate car purchase program for business owners and smaller vendors. LG Display has also created a new 40 billion won loan program for suppliers.

By Lee Ji-yoon (jylee@heraldcorp.com)