Up to 3 Million Won Support for Small Business Owners Under Strong Consideration... 5 Trillion Won Outline for 3rd Disaster Relief Fund

'Good Landlords' 70% Tax Credit Promotion
Customized Damage Measures to be Announced This Week

(Photo) [Image source=Yonhap News]

[Asia Economy Reporter Joo Sang-don] The government is reportedly pushing for a plan to support small business owners and self-employed individuals affected by the third wave of COVID-19, including up to 3 million won for rent. When combined with an employment stability package for vulnerable employment groups such as special-type workers (teukso), the scale of the third disaster relief fund is estimated to approach 5 trillion won.

According to the Democratic Party of Korea and government authorities on the 27th, a customized damage countermeasure for the third wave of COVID-19, including these details, will be finalized through high-level party-government-civil discussions, the Cabinet meeting on the 29th, and the Emergency Economic Central Countermeasures Headquarters meeting, and is expected to be announced within this week.

The government and ruling party are in the final stages of reviewing a plan to provide support funds of around 3 million won to small business owners who have been subject to business suspension or restrictions due to the strengthening of social distancing measures.

This amount includes ▲ management stabilization funds (1 to 2 million won) for small business owners whose sales have sharply declined or who have been subject to business restrictions or suspensions, plus approximately 1 million won as direct rent support.

The 1 million won rent support is reportedly targeted not at general small business owners with decreased sales, but at those who have been subject to business restrictions or suspensions due to elevated social distancing levels. A differentiated support plan is also being considered, providing 1 million won to businesses under suspension and 700,000 to 800,000 won to those under restriction.

Additionally, the party and government are finalizing plans to include a third emergency employment stability support fund for vulnerable employment groups such as special-type workers and freelancers.

With the addition of direct rent support for small business owners and support for vulnerable employment groups such as special-type workers, the scale of the third disaster relief fund is expected to increase significantly from the initially planned 3 trillion won to nearly 5 trillion won.

Alongside this, the government is also actively discussing a tax law amendment to raise the tax credit level for 'good landlords' who voluntarily reduce rent from the current 50% to 70%, to be announced together with the third disaster relief fund.

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