Assemblyman Choi Seung-jae Proposes Small Business Welfare Act... 50 Members from Both Parties Sign On

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] In the wake of the COVID-19 pandemic, which has dealt a direct blow to small business owners, a legislative bill aimed at strengthening the social safety net for small business owners has been proposed in the 21st National Assembly.

On the 11th, Choi Seung-jae, a member of the United Future Party, took the lead in proposing the "Small Business Owner Welfare Act," which comprehensively guarantees basic survival rights and welfare support for small business owners. The bill was co-sponsored by 50 members, including 8 from the Democratic Party of Korea. Choi, a former president of the Small Business Federation, played a key role in the passage of the Small Business Basic Act during the 20th National Assembly.

The Small Business Owner Welfare Act includes provisions to guarantee a basic income tailored to the characteristics of small business owners, mandates the establishment of a basic welfare plan every three years, and addresses the scale of funding and procurement methods for small business welfare projects.

In particular, in the event of special disasters such as COVID-19 that cause business damage or urgent management issues, the government is authorized to provide support for social insurance premiums and living expenses.

Additionally, the bill allows the government and local governments to reduce taxes such as income tax and corporate tax to stabilize the management of small business owners, and includes provisions to establish mutual aid systems to help small business owners facing closure risks to become self-reliant and recover, covering overall welfare for small business owners.

Choi said, "This is a comprehensive version that consolidates various welfare-related support measures for small business owners, which were scattered across several individual laws such as the Small Business Protection and Support Act and the Special Act on Livelihood-Suitable Industries for Small Business Owners." He added, "If the bill is enacted, it will create a new ecosystem that can improve the economic instability of small business owners who immediately fall into poverty after closure."

He continued, "Please do not misunderstand the concept of small business owner welfare as mere handouts. Small business owners are the first to collapse and the last to recover during economic crises, but they have always been pushed to the bottom of policy priorities. Once a welfare system for small business owners is established, the local economy based on neighborhood businesses will revive, leading to increased tax revenue and job stability, thereby strengthening the foundation of our economy."

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