Passage of Fishermen's Livelihood Bill... Reducing Burden and Increasing Income

National Pension Premium Support Extended for 5 Years

Tax Exemption on Income Up to 80 Million KRW

Expansion of Fisheries Direct Payment Scale and Eligibility

Border Area Fishermen Also Eligible

(Photo for reference)

[Sejong=Asia Economy Reporter Joo Sang-don] Recently, with the passage of fisheries direct payment and fishermen’s livelihood bills related to national pension and income tax in the National Assembly plenary session, the burden on fishermen has decreased and their income has increased.

The National Federation of Fisheries Cooperatives (SuHyup) stated on the 14th, "With the passage of fishermen’s livelihood bills and new laws related to the promotion and support of fisheries products on the 9th, the burden on fishermen has significantly decreased and a legal basis for the promotion and support of fisheries products has been established. SuHyup will also continue efforts to provide various supports to increase fishermen’s income and reduce their tax burden."

The recently passed fishermen-related bills include the National Pension Act, the Act on the Implementation of Fisheries Direct Payment System, the Act on Structural Improvement of Fisheries Cooperatives, and the Act on the Promotion and Support of the Fisheries Products Industry.

First, under the revision of the National Pension Act, the deadline for the national pension premium support project for farmers and fishermen, which was operated under a sunset clause, has been extended by 5 years from December 31, 2019, to the end of 2024. Accordingly, 380,000 farmers and fishermen will continue to receive an average monthly support of 41,484 KRW.

The scale and eligibility of fisheries direct payments have also been expanded. Previously, fishermen in border areas such as Ganghwa and Ongjin counties in Incheon, Gimpo city in Gyeonggi, and Goseong county in Gangwon suffered damages due to Chinese vessels’ sweeping fishing in North Korean waters, illegal fishing activities, and military exercises in border areas, but they did not receive fisheries direct payments. However, according to the revision of the 'Act on the Implementation of Fisheries Direct Payment System,' fishermen in border areas will now also receive fisheries direct payments. The support amount per fishing household has increased from 650,000 KRW last year to 700,000 KRW.

Following the revision of the Income Tax Act last year, the scope of income tax reduction for fishermen has also expanded. Previously, income tax was exempted up to 30 million KRW combining fishing and aquaculture income, but after the revision of the Enforcement Decree of the Income Tax Act (tentatively in the first half of 2020), fishing income and aquaculture income are separated, and income tax exemption applies up to 50 million KRW for fishing income and 30 million KRW for aquaculture income, totaling up to 80 million KRW.

With the newly enacted Act on the Promotion and Support of the Fisheries Products Industry, SuHyup has been designated as a 'Fisheries Products Export and Import Support Organization' for the fisheries products export support project entrusted by the government. This establishes a legal basis for SuHyup’s export support projects.

Additionally, the 'target fund system' was introduced, which reduces insurance premiums paid by member cooperatives when the fund accumulation reaches the target scale. This key provision of the 'SuHyup Structural Improvement Act' also passed the National Assembly.

A SuHyup official said, "About 80 cooperatives engaged in mutual finance pay 60 billion KRW annually in insurance premiums, and this will result in a reduction effect of about 18 billion KRW, or 30%. This creates conditions to strengthen the competitiveness of mutual finance businesses, and the saved resources will be used to support fishermen."

This content was produced with the assistance of AI translation services.