Additional Extension for Inspection of Chemical Handling Facilities in SMEs Until Year-End... Small Business Simple Payment Fees Reduced to 1% Range (Comprehensive 2)

Korean New Deal Meeting and Economic Central Disaster and Safety Countermeasures Headquarters Meeting

3-Month Extension of Grace Period
Small Business Simple Payment Fees to be Reduced from 2-4% Range to 1% Range

[Asia Economy Reporters Joo Sang-don (Sejong), Jang Se-hee, Moon Hye-won, Kim Hee-yoon] The government has decided to extend by an additional three months until the end of 2020 the grace period for regular inspections of chemical handling facilities, which was originally scheduled to end this month, to ease the burden on small and medium-sized enterprises (SMEs) handling chemicals whose business conditions have worsened due to the prolonged COVID-19 pandemic. Additionally, measures are being pursued to reduce the simple payment fees for small business owners, currently in the 2-4% range, down to the 1% range.

On the 17th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, chaired the 3rd Korean New Deal Ministerial Meeting and the 16th Central Disaster and Safety Countermeasures Headquarters meeting held at the Government Seoul Office, where he announced the 'Field-Centered Regulatory Innovation Plan to Ease Corporate Burdens' and the 'Support Plan for Digital Transformation of Small Businesses,' among other initiatives.

Minister Hong said, "To alleviate the burdens faced by companies struggling on the ground due to the continued spread of COVID-19, we have prepared a total of 88 regulatory innovation tasks, including 43 tasks for regulatory innovation in 10 major industrial sectors and 45 tasks to ease burdens on SMEs."

First, based on recommendations from economic organizations, the government will further ease chemical management burdens. To resolve difficulties faced by SMEs handling chemicals, the regular inspections conducted every 1-2 years will be extended by an additional three months until December this year. Companies other than SMEs must undergo regular inspections as scheduled starting next month. Furthermore, for minor change reports that do not expand the scope of chemical accident impact, operation prior to installation inspection will be allowed.

Seo Seung-won, Executive Vice President of the Korea Federation of SMEs, said, "We appreciate the government’s swift reflection of industry voices in extending the grace period for regular inspections of chemical handling facilities by an additional three months until the end of this year. This extension is expected to provide some relief to SMEs."

Alongside this, to activate technology-based startups, the scope of startups will include convergence business models such as smart clothing and intelligent automobiles, and special provisions for the Youth Tomorrow Savings Program for innovative SMEs with fewer than five employees will also be pursued. Additionally, the introduction of a 'SME Regulatory Forecast System' will be considered to minimize regulatory burdens from the perspective of actual companies.

Policy support will also be strengthened to help small business owners build competitiveness in the digital era after COVID-19. Through the establishment of a big data platform for small businesses, management and commercial district information will be provided, and efforts will be made to reduce payment fees to the 1% range (currently 2-4%) by expanding simple payment methods. Furthermore, policy funds worth 400 billion KRW and special guarantees worth 200 billion KRW will be provided to promote workplace digitalization, smart equipment purchases, and the use of smart technologies.

To expand digitalization in small business workplaces such as traditional markets and stores, 500 digital traditional markets equipped with online delivery systems will be established by 2025, along with the distribution of 100,000 smart stores and 10,000 smart workshops incorporating robots and other technologies. By 2022, a pilot project called 'Digital Commercial District Renaissance' will be launched in three locations where these are concentrated. Additionally, customized on-site training will be provided to 50,000 digitally vulnerable groups such as middle-aged individuals by 2025, and a win-win cooperation fund of 40 billion KRW will be established by 2023 to distribute 200,000 kiosks and digital payment terminals to small business owners.

At the meeting, the 'Korean New Deal Legal and Institutional Reform and Legislative Promotion Plan' was also discussed. Minister Hong explained, "As a follow-up to the Korean New Deal, the government is preparing for the prompt launch of a policy-type New Deal fund, and plans to prepare and present a New Deal investment guideline specifying the investment scope and targets of the policy-type New Deal fund by September. The improvement plan for New Deal-related laws and systems includes 76 institutional improvement tasks such as the enactment of guidelines for the three data laws included in the 'Korean New Deal Comprehensive Plan' and the abolition of the upper limit on the renewable energy supply obligation ratio, as well as over 100 tasks proposed by the economic sector based on field difficulties, totaling more than 170 institutional improvement tasks."

The government plans to proceed with legislation within the regular National Assembly session after detailed discussions on legal and institutional improvement tasks and subsequent consultations between the ruling party and the government for matters requiring legal amendments.

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