Hong Nam-ki: "Extension of Good Rent Tax Credit Until June Next Year... Special Tax Support for Local Governments' Efforts" (Update)

Emergency Economic Central Countermeasures Headquarters Meeting and External Economic Ministers' Meeting Held on the 12th
Discussion on Additional Measures to Alleviate Rent Burden for Small Business Owners

[Image source=Yonhap News]

[Asia Economy Reporters Jusangdon Joo and Sehee Jang] Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki announced on the 12th, "To continuously encourage voluntary rent reductions by the private sector, we will extend the application period of the Good Landlord Tax Credit, which provides a 50% tax credit on income and corporate taxes for the amount of rent reduction, until June next year."

Deputy Prime Minister Hong made this announcement at the 19th Emergency Economic Central Countermeasures Headquarters meeting and the 219th Foreign Economic Ministers' Meeting held at the Government Seoul Office on the same day.

The government plans to extend the application period of the Good Landlord Tax Credit, originally scheduled to end this year, until June next year in the private sector. It will also expand financial support by including landlords who reduce rent by a certain level among the recipients of small business policy funds.

In the public sector, the government will extend the rent reduction period for national and public institution-owned properties until June next year. It also plans to explore various support measures tailored to local conditions, such as enacting win-win agreement ordinances and certifying good landlords, mainly through local governments. It added that special grants corresponding to local governments' efforts will be considered.

Deputy Prime Minister Hong said, "It is understood that about 40,000 small business owners are directly benefiting from rent reductions through good landlord support," and added, "The government will also take multifaceted support measures, including tax credits for rent reductions and rent reductions by the government, local governments, and public properties."

Regarding the election victory of President-elect Joe Biden of the United States, he announced plans to form a government-wide 'US New Government Economic Cooperation Task Force (TF).'

He stated, "Considering President-elect Biden's policy pledges, many changes are expected in the US, including the implementation of COVID-19 crisis stimulus measures amid efforts for unity, manufacturing innovation policies, restoration of jobs and the middle class, expansion of eco-friendly investments, return to multilateralism, and strengthened cooperation with allies," adding, "First, in the global economy, there are many forecasts that overall uncertainty will ease and that the effects of expansionary fiscal policies and improvements in international trade and commerce conditions will contribute to economic recovery."

He also added that eco-friendly cars, batteries, and renewable energy industries present opportunities, but it is necessary to prepare for possible stricter standards in industries such as steel and petrochemicals.

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