Paid 20.2 Trillion KRW in Charges Last Year... 1.2% Decrease from Previous Year

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Last year, the total number of contributions was 90, with a payment scale of 20.2 trillion won. This represents a decrease of 20 billion won (1.2%) compared to the previous year due to the impact of COVID-19.

On the 24th, the Ministry of Economy and Finance held a written meeting of the Contribution Management Deliberation Committee chaired by Deputy Minister Ando Geol to discuss the "2020 Comprehensive Report on Contribution Management," which contains these details. According to the Contribution Management Act, the government plans to submit the comprehensive report on contribution management to the National Assembly by the end of this month.

Last year, the total number of contributions was 90, and the total payment scale was 20.2 trillion won. Due to the impact of the novel coronavirus infection (COVID-19) and other factors, this decreased by 20 billion won (-1.2%) compared to the previous year.

The decreased items totaled 42 contributions, amounting to 1.4 trillion won.

With the decrease in the number of departures, departure contributions decreased by 300 billion won, and due to a reduction in electricity sales for education such as online classes, the electricity industry infrastructure fund contributions decreased by 100 billion won.

On the other hand, due to an increase in market funds, 1.2 trillion won increased across 42 contributions.

Specifically, the special contribution to the Deposit Insurance Bond Repayment Fund increased by 200 billion won due to an increase in average deposits at financial institutions, and the National Health Promotion Contribution increased by 200 billion won due to an increase in tobacco exports.

The collected contributions were utilized as resources for 5 special accounts and 34 funds.

In the financial sector, 5 trillion won was spent on credit guarantees for small and medium-sized enterprises with insufficient collateral and activation of housing finance for residential stability. In the industrial sector, 4.4 trillion won was used for the spread and infrastructure expansion of renewable energy to prepare for carbon neutrality and for rebates on the purchase of top-efficiency home appliances.

In the health sector, 3 trillion won was spent on smoking cessation support and mental health service projects, and in the environmental sector, 2.7 trillion won was used for early retirement support of old diesel vehicles.

Deputy Minister Ahn stated, "For funds whose contribution income has decreased due to COVID-19 and other factors, bold expenditure restructuring and efforts to increase self-generated income are necessary," adding, "We plan to actively reflect this when preparing next year's budget and fund operation plans."

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