Government Announces 'Second Half Economic Policy Direction'; SMEs Welcome Corporate Succession Improvement Plan

Kim Ki-moon, President of the Korea Federation of Small and Medium Business.

The small and medium-sized enterprises (SME) sector welcomed the government's announcement of the '2023 Second Half Economic Policy Direction' on the 4th.

The Korea Federation of SMEs stated in a press release following the government's announcement of the economic policy direction for the second half of the year, "This economic policy direction significantly reflects the institutional improvement measures for facilitating business succession proposed by the SME sector during the meeting between Deputy Prime Minister for Economy Choo Kyung-ho and SME representatives on the 19th of last month."

Key business succession-related policies included by the government this time are the extension of the installment payment period for gift tax, expansion of the special low tax rate limit for prior gifts, and relaxation of restrictions on business type changes in line with industrial trend changes. The Federation said, "This provides a foundation for SMEs, which have struggled under unrealistic systems, to grow into long-lasting companies through planned succession," adding, "However, since follow-up measures such as legislation are essential, we request active legislative support from the National Assembly."

The Federation also emphasized that effective measures such as easing restrictions on industries entering local industrial complexes should be promptly implemented. They stressed that various follow-up measures, including extension of grace periods and strengthening safety management capabilities, must be carried out so that micro-enterprises with fewer than 50 employees can respond to the Serious Accidents Punishment Act.

The Federation stated, "Above all, the most important thing is that policies are implemented with a sense of urgency, so ministers of economic departments should frequently visit SME sites and focus on creating tangible results for businesses," and added, "The SME sector will also strive to overcome the Korean economic crisis and revitalize the economy by expanding investment and creating jobs in line with the government's economic policy direction for the second half of the year."

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