Tax Relief Benefits Also Extended to Entertainment Bars Affected by COVID-19

Although it is the top industry for business restrictions,
it is excluded from the target as it is classified as a high-end entertainment venue.
Exceptions apply when business is prohibited due to infectious diseases.

[Asia Economy Reporter Park Cheol-eung] Tax reduction benefits will also be provided to entertainment bar owners who suffered damage due to business restrictions caused by COVID-19. Entertainment bars are the top priority businesses subject to business restrictions, but they have been excluded from tax support as they are classified as 'gogeup orakjang' (high-end entertainment establishments) under the law. Since it is true that entertainment bar owners have also been harmed by administrative measures related to COVID-19, there is a need for relief measures for them as well.

Officials from the Korea Entertainment Food Service Association held a press conference on the 26th in front of the Democratic Party headquarters in Yeouido, Yeongdeungpo-gu, Seoul, urging the suspension of the ban on gatherings at entertainment bars. They stated, "We ask the political sphere to listen to the pleas of entertainment business owners," and claimed, "Despite the government's measures lacking fairness, neither the quarantine authorities nor the political sphere have been willing to listen to us." Photo by Kim Hyun-min kimhyun81@

According to the National Assembly's Public Administration and Security Committee on the 3rd, Assemblywoman Seo Young-kyo of the Democratic Party of Korea and Assemblyman Kwon Young-se of the People Power Party each proposed amendments to the Local Tax Special Cases Act, which were merged and recently approved as a committee-level alternative. Since both ruling and opposition parties proposed the bills and reviewed them together in the standing committee to reach an agreement, it is expected that passing through the Legislation and Judiciary Committee and the plenary session will not be difficult.

The current law explicitly excludes villas, golf courses, luxury houses, and high-end entertainment establishments (such as gambling halls, entertainment bars, and special bathhouses) from local tax reductions. The amendment adds an exception stating that if business is prohibited under the Infectious Disease Prevention and Control Act, the exclusion does not apply. Most local governments nationwide have taken local tax reduction measures for small business owners struggling due to COVID-19, and property tax reductions are also given to landlords who participate in the so-called 'Good Landlord' movement by lowering rents. However, buildings classified as high-end entertainment establishments have been excluded from all these benefits.

The Public Administration and Security Committee explained, "Although high-end entertainment establishments and some other industries are subject to higher property tax rates than general taxpayers, tax reductions for them are absolutely prohibited. This amendment aims to establish grounds for local tax reductions according to ordinances when business is prohibited." The Korea Entertainment Food Service Association held a press conference in front of the Seoul Metropolitan Council on the 22nd, demanding measures, stating that the business prohibition period has reached 270 days since last year, and the period with business restricted until 9 p.m. was 60 days.

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