Expansion of Lunar New Year Local Gift Certificates to 4.5 Trillion Won... Increase in Donation Tax Deduction

Lunar New Year Holiday Designated as Priority Protection Period for Delivery Workers
Fostering a Donation-Friendly Culture...Increase in Donation Tax Credit Rate

On the first day of the Chuseok holiday, the 30th, citizens are shopping at Mangwon Market in Mapo-gu, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Jang Sehee] The government plans to expand the issuance of local love gift certificates to 4.5 trillion won in the first quarter of this year. This is intended to revive the economy, which has been stagnant due to the prolonged COVID-19 pandemic.

According to the Ministry of Economy and Finance on the 23rd, the government will increase the issuance scale of local love gift certificates from 4 trillion won to 4.5 trillion won to help traditional markets, and double the support funds for purchasing Lunar New Year food products. In addition, the current gift allowance limit of 100,000 won has been adjusted to 200,000 won.

Furthermore, the government has decided to provide a total of 38.4 trillion won in holiday funds through special loans and guarantee supplies. This amount is about 2.1 trillion won more than last year.

Loans from commercial banks (31.3 trillion won), policy banks (3.85 trillion won), and the Bank of Korea (236.5 billion won) total 38.4535 trillion won, and guarantees from the Korea Credit Guarantee Fund, Korea Technology Finance Corporation, and regional credit guarantee foundations amount to 2.197 trillion won. Existing loans from institutions such as the Korea Development Bank and Industrial Bank of Korea, totaling around 10.1 trillion won, as well as guarantees from the Korea Credit Guarantee Fund and Korea Technology Finance Corporation, will have their maturities extended.

The government will also foster a donation-friendly culture during the Lunar New Year holiday to promote donations to marginalized neighbors. The current tax credit rates for donations are 15% for amounts up to 10 million won and 30% for amounts exceeding 10 million won.

The government plans to include specific directions for increasing the tax credit rates in this year’s tax reform bill. Regarding this, Kim Yong-beom, the first vice minister of the Ministry of Economy and Finance, stated, "We do not plan to raise only a certain bracket. We plan to appropriately raise both brackets, and the extent of the adjustment is under review."

In addition, the government plans to implement ▲ concentrated supply of 16 major Lunar New Year food products and agricultural and livestock products before the holiday ▲ special support programs for cold-vulnerable groups ▲ designation of a focused protection period for essential workers such as delivery workers ▲ tailored damage support measures for small business owners and special employment workers before the Lunar New Year holiday.

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