The Cabinet approved Oct. 2 as a temporary holiday, which will extend the Chuseok holiday to 10 days.
The temporary holiday will allow the public an unprecedented long break from Sept. 30 to Oct. 9. The period includes the traditional harvest holiday of Chuseok, as well as two other national holidays _ National Foundation Day and Hangul Proclamation Day.
"This will enable the people to enjoy up to 10 days of vacation," President Moon Jae-in said during a Cabinet meeting at Cheong Wa Dae, Tuesday.
"Although it may seem inappropriate to discuss holiday matters amid a grave security situation, if the government waited longer to designate the temporary holiday with shorter notice, this would have made it difficult for the public to plan ahead," he said.
"I hope the holiday will serve as a time of rest and comfort for the public."
Moon also ordered support for those who could suffer from the long holiday, such as small companies that face payment delays for goods and underprivileged children who have to skip lunches as they will not be able to have school meals.
"Due to the drought and heat this year, the crop yield is not good, and due to the pesticide-tainted egg scare, grocery prices have been unstable," Moon said. He urged efforts toward product supply and pricing stability ahead of the Chuseok holiday.
The designation was one of Moon's election campaign pledges aimed at providing sufficient rest to enable a work-life balance and boost domestic demand.
Studies state domestic spending increases by 43.2 billion won ($3.8 million) with one additional holiday.
The government will also exempt expressway users from tolls during the Chuseok holiday from Oct. 3 to 5. Toll exemption during the nation's two big holidays _ Lunar New Year and Chuseok when people visit their hometowns _ was also one of Moon's pledges.
The government's designation of a temporary holiday is based on regulations on statutory holidays for public institutions, and therefore applies to public sector workers.
Conglomerates allow employees to take a paid day off on government-designated temporary holidays but for many small- and-medium sized companies this is not the case.