Vice Minister Gi Jae: "It is difficult to find cases where small business loss compensation is defined by law"

Regular Briefing of the Emergency Economic Central Countermeasures Headquarters Meeting on the 20th

[Asia Economy Reporter Jang Sehee] Kim Yongbeom, the 1st Vice Minister of the Ministry of Economy and Finance, stated on the 20th regarding the legalization of loss compensation for small business owners, "Based on our initial review, it is not easy to find countries that have legalized support for small business owners."

At the regular briefing of the 'Emergency Economic Central Countermeasures Headquarters Meeting' held at the Government Seoul Office on the same day, Vice Minister Kim said, "In other countries, when damage occurs, the government and the National Assembly discuss it case by case and flexibly design programs."

This is interpreted as expressing opposition to legally institutionalizing economic loss compensation for self-employed and small business owners caused by the spread of the novel coronavirus infection (COVID-19) and government quarantine measures. Previously, Prime Minister Chung Sye-kyun stated that there should be a legal way to compensate citizens when economic activities are restricted for quarantine purposes.

Regarding the plan to temporarily increase the donation tax credit rate this year, Vice Minister Kim explained, "We plan to appropriately raise both brackets to a reasonable scale," adding, "We will be careful to prevent the rate from being concentrated in a specific group."

Currently, the donation tax credit deducts 15% of the donation amount (30% for the portion exceeding 10 million KRW) from the calculated tax amount. Political donation contributions receive a full tax credit up to 100,000 KRW, 15% for the portion exceeding 100,000 KRW, and 25% for the portion exceeding 30 million KRW.

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