SME Sector "Welcomes Government's 'Economic Policy Direction'... Bipartisan Cooperation Needed"

The small and medium-sized enterprises (SME) sector expressed a welcoming stance on the government's '2025 Economic Policy Direction' on the 2nd. On the same day, the government held an expanded economic ministers' meeting chaired by Choi Sang-mok, Acting Prime Minister and Minister of Economy and Finance, to finalize and announce the 2025 Economic Policy Direction.

The Korea Federation of SMEs stated, "This year, due to low birth rates, aging population, high inflation, and high interest rates, consumption and investment have contracted, freezing the domestic market. Coupled with rising protectionism centered on the United States and domestic political uncertainties, the difficulties faced by SMEs and small business owners are expected to deepen."

They added, "In this situation, the 2025 Economic Policy Direction announced today shows the government's determination to take the lead and do its best to restore economic sentiment and stabilize people’s livelihoods," and "especially, the policy tasks discussed at the SME meeting with Deputy Prime Minister Choi Sang-mok on December 26 were quickly reflected in this economic policy direction," welcoming the announcement.

The Korea Federation of SMEs explained, "We expect that measures such as ▲ doubling the income deduction rate for small business owners' credit card usage ▲ including century-old stores in the business succession tax deduction target ▲ expanding the income deduction limit for Yellow Umbrella Mutual Aid contributions ▲ temporary investment tax credits and accelerated depreciation special cases for new growth, core technologies, and general investments (applied temporarily in 2025) ▲ doubling the limit for local investment promotion subsidy support will help revitalize small business owners and self-employed individuals and promote corporate investment."

The Korea Federation of SMEs added, "However, for government policies to be effectively implemented, the passage of laws in the National Assembly is essential, so we hope that the ruling and opposition parties will cooperate promptly and that politics will support the economy."

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