Expansion of 1 Trillion Won in Saemin Finance Including Haetsalron... 30% Rent Reduction for 6 Months in Gyeongja Free Economic Zones

Bang Gi-seon, Deputy Minister for Planning and Coordination at the Ministry of Economy and Finance, is giving a detailed pre-briefing on the "Second Half of 2020 Economic Policy Direction" at the Government Complex Sejong on the 29th of last month.

[Asia Economy Reporter Kwangho Lee] The government will expand the supply of low-income financial products such as Saessal Loan by 1 trillion won. It will temporarily reduce overdue fees for tenants of public institution facilities and national property, and introduce a deferral system for national property usage fees. In addition, considering the difficulties faced by export companies, rent for companies located in Free Economic Zones, Free Trade Zones, and Foreign Investment Zones will be reduced by 30% for six months. Furthermore, tax audits for small and medium-sized enterprises (SMEs) that have signed employment retention agreements will be deferred for up to three years.

The 'Measures to Strengthen Support for Early Overcoming of the Economic Crisis,' which includes these contents, was announced on the 1st as part of the '2020 Second Half Economic Policy Direction' jointly released by government ministries.

First, the government plans to steadily implement a policy response package worth 250 trillion won by mobilizing all available means. This includes 32 trillion won for real economy damage measures, 175 trillion won for financial stability measures, and 46 trillion won for additional reinforcement measures. Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, promised rapid execution of the supplementary budget during the '2020 Second Half Economic Policy Direction and 3rd Supplementary Budget Party-Government Meeting' held at the National Assembly that morning, stating, "We will thoroughly prepare in advance to ensure that 75% of the supplementary budget is executed within three months immediately after its passage in the National Assembly."

Additionally, the supply scale of low-income financial products such as Saessal Loan will be expanded and loan screening requirements will be relaxed. To support low-income earners such as self-employed individuals struggling to secure living expenses, the supply of low-income financial products will be increased by 1.05 trillion won, and loan screening requirements will be temporarily eased this year to allow support for low-income policy funds even after temporary unemployment and reemployment due to COVID-19. Moreover, the payment deadline for electricity bills for small business owners will be extended by an additional three months until September, and rent burdens will also be alleviated.

Furthermore, the government will support the smartization of micro small business owners to enhance their self-sustainability by introducing a 200 billion won smart micro small business exclusive guarantee.

The government will also promote programs such as the Period Industry Stabilization Fund and livelihood and financial stability package programs to protect companies in crisis or on the brink of collapse.

First, the financial stability package, including the 40 trillion won Main Industry Stabilization Fund and the 20 trillion won Corporate Bond and Commercial Paper Purchase Institution, will be swiftly executed, and support will be provided for the establishment of bond and securities market stabilization funds to stabilize bond and stock markets and facilitate corporate financing. This includes 20 trillion won for bonds and 10.7 trillion won for securities.

In particular, considering the difficulties faced by export companies, rent for companies located in Free Economic Zones, Free Trade Zones, and Foreign Investment Zones will be reduced by 30% for six months. Also, this year, a total of 103.4 trillion won worth of small and medium-sized enterprise product purchase plans through public institutions will be promoted.

Efforts to maintain and stabilize employment will also be supported. Tax audits for SMEs that have signed employment retention agreements will be deferred for up to three years. However, if the employment retention agreement is not fulfilled or specific tax evasion suspicions are confirmed, the deferral will be canceled.

The designation of the shipbuilding industry as a special employment support sector will be extended until the end of December, and additional designations for special employment support sectors such as the film industry will also be considered.

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