Hong Nam-ki "Considering Raising the Minimum Loss Compensation for Small Business Owners"... Increasing from 100,000 Won

Mention of On-site Inspection Report Related to Supply Chain
Concerns Over "Raising Deduction Threshold for Capital Gains Tax Possibly Causing Market Instability"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki announced on the 24th that he is considering raising the minimum compensation amount for small business owners' loss compensation from 100,000 won.

Deputy Prime Minister Hong made these remarks during a visit to the Daejeon Regional Procurement Office's stockpile base for an on-site inspection related to the supply chain. He said, "While reviewing the budget for next year, we are internally considering raising the minimum compensation amount of 100,000 won," adding, "Whether it will be specifically 150,000 won or 200,000 won will be reviewed during the National Assembly's budget deliberation process." He further explained, "Once the policy is finalized, the Private Compensation Review Committee will officially decide on it."

Hong also stated, "Support measures for small business owners who are not eligible for loss compensation should be partially reflected in next year's budget," adding, "This will be a matter for discussion during the National Assembly's deliberation process."

Regarding the adjustment of the capital gains tax deduction threshold from a market price of 900 million won to 1.2 billion won, he expressed concerns, saying, "While many in the National Assembly favor raising the capital gains tax deduction threshold, the government is worried that changes in capital gains tax might act as a factor causing market instability."

He explained, "This issue is not about collecting more or less tax," adding, "Between 900 million won and 1.2 billion won, the capital gains tax becomes zero, which may trigger demand for switching houses within this range, potentially causing market instability." Deputy Prime Minister Hong said, "The government takes a cautious stance," and added, "I think there will be further discussions in the National Assembly's tax subcommittee by next week."

Regarding the extension of this year's tax payment deadline being recorded as additional tax revenue next year, he said, "Some are making efforts to reduce deficits, while others have room to increase expenditures, but this is a matter to be discussed with the National Assembly." Concerning recent public backlash against the announced comprehensive real estate holding tax, he stated, "I would like to reiterate that describing the tax as a bomb dropped on all citizens is somewhat excessive," adding, "The comprehensive real estate holding tax is very valuable for regional balanced development."

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