Controversy has arisen over where this year’s higher-than-expected tax revenue will be spent, but the government has decided to use the excess tax revenue to help small businesses, especially the self-employed who are not eligible for loss compensation.
Reporter Im Tae-woo reports.
800,000 self-employed business owners whose sales have decreased due to bans on gatherings or restrictions on business hours are receiving compensation from the government.
Additional support targets include wedding halls, travel, tourism, accommodation, and performance businesses who are not eligible for loss compensation even though sales have decreased due to restrictions on the number of people and facilities.
To them, a special loan with a 1% ultra-low interest rate up to a limit of KRW 20 million is provided to up to 100,000 people.
In addition, 8.9 trillion won will be invested in financial support projects, such as expanding the existing emergency loan target and limit for small businesses, and lowering the interest rate for tourism funders, which are targeted for accommodation and tourism businesses by up to 1%p.
For 800,000 companies that are eligible for loss compensation and 140,000 companies that are not eligible for loss compensation, up to 200,000 won in electricity bills and industrial accident insurance premiums are reduced for two months in December of this year and January of next year.
In addition, 100 billion won was allocated for sales recovery projects such as additional issuance of cultural and sports facilities.
12.7 trillion won will be invested in supporting small business owners and the underprivileged class, including about 30% of the excess tax revenue, or 5.3 trillion won, plus the existing budget.
The self-employed oppose that the low-interest loan support, not the cash equivalent, will only be used to revert the existing debt and will have little effect.
[김진한/숙박업소 사장 : 금융 지원으로 우리한테 빚을 내서 너희들이 알아서 해라 라는 느낌이에요, 그냥. 코로나로 인해서 지금 다들 빚 없으신 분들이 없을 정도로 지금 다 빚을 지고 있는데….]
It also called for long-term industry-specific policy support.
[류필선/소상공인연합회 홍보실장 : 지금 가장 큰 문제가 되는 거는 임대료, 인건비 부분이거든요. 이분들이 부담스러워하는 고정비를 좀 경감할 수 있는 방안들이 필요로 한 거고요.]
The government also decided to extend the individual consumption tax cut for passenger cars, which was scheduled to end at the end of this year, by six months to stimulate consumption.
(Video editing: Park Jin-hoon, VJ: Park Hyun-woo)