Yoon announces 25-tln-won small business support package

Jul 04, 2024, 11:00 am

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President Yoon Suk-yeol speaks during a meeting on the economic policy in the latter half of this year held at the guesthouse of Cheong Wa Dae in Seoul on July 3, 2024./ Source: Yonhap

AsiaToday reporter Park Young-hoon

President Yoon Suk-yeol on Wednesday announced a 25 trillion-won (US$18 billion) package of support measures for small business owners, including expanding low-interest loans, extending the repayment period for policy loans, and providing subsidies for their electricity costs. Criticizing the previous Moon Jae-in government’s cash support policy and the main opposition Democratic Party’s proposal to provide cash handout of 250,000 won (US$180) to all citizens to boost domestic spending, Yoon said, “Instead of populist cash handouts, the support plan will provide sufficient tailored support to small business owners in desperate need and pursue structural measures.”

Yoon unveiled the package during a meeting to discuss the direction of economic policy in the second half, saying while recent economic indicators have been on a recovery track, it has not yet translated into tangible benefits for the local economy. This is the fifth time President Yoon has presided over a meeting to discuss economic policy directions since his inauguration.

“Micro business owners, who were hardest hit by the COVID-19 pandemic, are still in a difficult situation,” Yoon said. Referring to their increased burden over interest, labor costs and lease payments, the president vowed to help lift the burden of necessary expenses.

Yoon said the government will expand eligibility for state supported low-interest loan exchange, extend the repayment deadline of guaranteed loans to five years. The government will extend the tax benefit for landlords who lower rent for micro business tenants until the end of 2025. Yoon also announced a plan to provide debt restructuring and support for recovery for such business owners facing closure, and increase the scope of the so-called “new beginning fund” for businesses affected by the pandemic.

Yoon vowed to rationalize regulations at each stage of growth so that small companies can grow into large ones and remove regulatory hurdles to foster the growth of new industries.

The government plans to take measures to enhance corporate value, which include increased tax benefits to companies that increase dividends.

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