"To Make Small Business Owners Feel It... Government Focuses on Livelihood Policies Ahead of Seol"

'People's Livelihood Forum with the Public' Held on the 8th
Special Electricity Bill Support to Begin Next Month
2.28 Million Small Business Owners to Receive Interest Refund

The government announced a 'livelihood economy' policy for small business owners ahead of the Lunar New Year. The policy implementation speed will be accelerated so that 7.7 million small and medium-sized enterprises (SMEs) and small business owners can feel the impact. Special support for electricity bills to reduce the cost burden on small business owners will be implemented next month. Small business owners currently using high-interest products with rates above 7% will be able to switch to low-interest products at 4.5% starting this month. Institutional improvements to protect honest small business owners will also be made. The government plans to introduce a record-high number of 165,000 foreign workers to help alleviate labor shortages for small business owners.

On the 8th, President Yoon Suk-yeol stated at the 'Livelihood Discussion with the People' held at the complex cultural space 'Layer57' in Seongsu-dong, Seoul, that the government will "ease the increased burden of interest, taxes, and utility charges caused by high inflation and high interest rates" for SMEs and small business owners. The theme of this tenth discussion meeting is 'SMEs and Small Business Owners Running Together, A Livelihood Economy Worth Living For.'

Alleviating Small Business Owners' Burdens and Resolving Unreasonable Regulations

In his opening remarks, President Yoon said, "Small business owners and self-employed individuals are the backbone and support of the national economy," adding, "Since my number one pledge during the campaign was to 'save small business owners and the self-employed,' the government has invested 50 trillion won in financial resources for compensation for business restrictions and support for recovery after taking office."

The Ministry of SMEs and Startups announced measures to realize a livelihood economy where small business owners and SMEs and venture companies run together at the livelihood discussion. First, electricity bill support of up to 200,000 won per business will be provided to micro small business owners with annual sales of 30 million won or less. Applications will be accepted from the 21st, and support will begin early next month. The target is 1.26 million small business owners and self-employed individuals. Additionally, up to 40% of the cost for purchasing or replacing high-efficiency equipment such as air conditioners and refrigerators will be supported.

Policies to reduce interest burdens will also be implemented immediately. From the 26th, through refinancing loans, small business owners with medium or good credit currently using high-interest products above 7% can switch to long-term installment loans of up to 10 years at a low interest rate of 4.5%. Interest refunds of up to 1.5 million won for interest paid to small financial institutions for vulnerable small business owners will be implemented from the 29th of next month. The support target reaches 2.28 million people. President Yoon said, "In cooperation with the financial sector, we will refund interest averaging about 1 million won per person to 2.28 million self-employed and small business owners, totaling 2.4 trillion won, and support refinancing loans from high-interest to low-interest loans."

To enable small business owners to secure funds stably, the statutory contribution rate of banks for regional credit guarantees will be raised. New guarantees worth 1 trillion won will be additionally supplied in the second half of the year to 32,000 small business owners. Policy funds worth 3.7 trillion won will also be supplied to 110,000 vulnerable small business owners. The simplified VAT taxpayer threshold will be raised from 80 million won to 104 million won. It is expected that 140,000 small business owners and self-employed individuals will benefit from this.

Measures to strengthen the social safety net for the self-employed have also been prepared. The government will support up to 80% of the self-employed employment insurance premiums paid by self-employed individuals to receive unemployment benefits upon business closure, and the application process will be simplified. The Yellow Umbrella Mutual Aid, a representative mutual aid for small business owners, which previously only paid benefits in cases of business closure or death, will be expanded to cover disasters, illnesses, and bankruptcy.

Unreasonable parts of regulatory laws targeting the self-employed will also be revised. For example, related enforcement decrees will be amended so that small business owners and the self-employed do not suffer damages due to underage youths purchasing alcohol or tobacco by falsifying their age. President Yoon said, "We will boldly improve unreasonable business regulations imposed on honest self-employed individuals," adding, "If it is confirmed that the self-employed checked the ID when youths purchased alcohol or tobacco by falsifying their age, administrative sanctions will be exempted, and excessive current business suspension standards will be reasonably adjusted." President Yoon also promised to conduct a full survey of about 1,160 lifestyle regulations applied to small business owners and the self-employed and immediately improve unfair regulations such as reducing quality certification fees for traditional liquor and relaxing facility and equipment standards required for automobile license plate issuance agencies.

A plan to introduce foreign workers to alleviate labor shortages was also announced. President Yoon stated, "To resolve the chronic labor shortage in small manufacturing and construction companies, we will introduce a record-high number of 165,000 foreign workers." This will be through the expansion of the E-9 visa for non-professional foreign workers. These foreign workers will be pilot-assigned not only to existing manufacturing but also to the restaurant, hotel, and condo industries.

O Gi-woong, Vice Minister of the Ministry of SMEs and Startups, is giving a preliminary briefing for the "Public Livelihood Discussion with the People" at the Government Seoul Office in Jongno-gu, Seoul on the 7th.

Support for Globalization of Startups and Venture Companies

Policies to support the globalization of startups and venture companies were also addressed on this day. President Yoon said, "We will restore the momentum of venture investment by investing 1.6 trillion won from the SME and venture mother fund in the first quarter of this year." The mother fund will co-invest in the 'Startup Korea Fund,' which is led by the private sector including financial institutions and large corporations, and plans include raising more than 1 trillion won in a global fund and establishing a program to connect with overseas venture capital to support domestic promising startups in attracting overseas investment.

A Korean-style global startup hub, a space where global companies, young people worldwide, and investors can freely interact, will also be established. President Yoon said, "We will build a youth startup hub like 'Station-F' in Paris, France, and create a global innovation special zone to foster an innovative ecosystem so that SMEs, venture companies, and startups can leap to become unicorn companies."

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