60% of Specially Supported Small and Medium Enterprises Request "Income Tax and Corporate Tax Reduction Benefits"
Junggi Joonganghoe Conducts Survey on 135 Companies Designated as Special Employment Support Industries
[Asia Economy Reporter Kim Bo-kyung] It has been revealed that 60% of small and medium-sized enterprises (SMEs) classified under special employment support industries believe that income tax and corporate tax reduction benefits are necessary.
The Korea Federation of SMEs announced on the 1st the results of a survey conducted from the 19th to the 24th of last month targeting 135 SMEs in special employment support industries.
This survey was conducted to investigate the utilization status of support benefits for SMEs designated as special employment support industries due to the COVID-19 crisis and to prepare improvement measures for the system.
Special employment support refers to a system where the government provides various supports to certain industries when the employment situation significantly worsens or is expected to worsen. Industries such as travel, tourism accommodation, performance, film, and route buses are designated as special employment support industries.
The main support measures include ▲increasing the level of paid employment retention support funds (from 67% to 90% of leave/suspension allowance) and the daily limit (from 66,000 KRW to 70,000 KRW) ▲expansion of vocational training support ▲relaxation of social insurance premiums and mandatory employment charges for the disabled ▲exemption from fines for delayed employment insurance reporting, among others.
The survey results showed that 60% of these SMEs felt that additional benefits such as 'income tax and corporate tax reductions' were necessary.
Next, respondents prioritized 'raising the level and daily limit of employment retention support funds (57.8%)', 'extension of existing loan maturities and expansion of additional loans (45.2%)', 'dramatic expansion of credit guarantee support (27.4%)', and 'allowing utilization of personnel on leave or suspension (17.0%)' in that order.
Regarding improvements in difficulties related to receiving employment retention support funds, respondents cited 'simplification of paperwork and shortening of the support fund processing period', 'extension of paid leave benefit periods considering the special circumstances of COVID-19', and 'maintaining support benefits for a certain period even in case of employment insurance arrears'.
Despite being designated as special employment support industries, 39.3% of companies in these industries were found not to be receiving actual support benefits. A Korea Federation of SMEs official stated, "There are cases where companies do not receive support benefits due to complicated application procedures or not meeting eligibility criteria," adding, "Active promotion of the system is also necessary."
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Based on the results of this survey, the Korea Federation of SMEs plans to propose improvement measures for the special employment support industry system to the Ministry of Employment and Labor, the competent authority.
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