What is "Chugen (or Ochugen)"?
The word " Chugen " is used in Taoism . " Chugen " was done in the time of the ( lunar calendar ) July 15 . Originally , chugen was the event to pray to God in order to atone for the sins of the people . People have presented an offering to God.
July 15 (on the lunar calendar) is also the day of Bon Festival (Urabon) of the Buddhism . The event in the taoism on July 15 spreaded to Japan, and was mixed with the event of Buddhism.
People came to distribute the gift to the vicinity and the close relative. (That gift was originally goods of a memorial service to an ancestor at Bon Festival.)
Afterwards, in Japan, "the chugen ceremony" has changed into the custom of doing the present to an indebted person.