Kim Moon-soo, the People Power Party candidate for the presidential election, unveiled support measures for small business owners and self-employed individuals on the 13th. The comprehensive measures include expanding the credit card deduction rate for traditional market gift certificates, establishing an online sales platform specialized for small businesses, as well as customized financial support to aid in the recovery of alleyway economies.
The People Power Party Policy Comprehensive Headquarters (led by Deputy Minister Kim Sang-hoon) stated on that day, "As the first promise in Kim Moon-soo's series 'A New Commitment to the People of Korea Every Day,' the 'small business pledge' will be announced."
Candidate Kim visited the Garak Market in Seoul the day before the official campaign began and met with merchants, saying, "If the Garak Market doesn't do well, the whole country won't do well," and promised, "I will take responsibility to make sure business improves." The People Power Party noted, "We will work hard to help small business owners facing difficulties regain strength and enable the economy to rise together."
◇Expanding cashback and establishing specialized T-commerce for small businesses to increase sales
First, measures to increase the sales of small businesses through cashback and other incentives have been prepared.
The use of traditional market gift certificates in alleyway economies will be expanded, and up to 10% of the payment amount will be offered as cashback when using digital gift certificates. The income deduction rate for traditional market credit cards will also be increased from 40% to 50%, and the issuance scale of Onnuri gift certificates will be raised from the existing 5.5 trillion won to 6 trillion won.
Additionally, a small business exclusive T-commerce channel will be established using a dedicated home shopping channel for small and medium-sized enterprises to support sales channels. It was also announced that a consumer points system connecting the government, credit card companies, and local governments would be established, along with the development of a digital domestic activation platform.
◇Reducing financial burdens and strengthening support for recovery
Candidate Kim stated that financial support for small businesses negatively impacted by high interest rates will be significantly enhanced. This will include expanding the role of a new start fund, increasing management stabilization fund support, special loans for living expenses, and waiving various fees for corporation limit loans.
In addition, there are plans to establish a national policy bank dedicated to small businesses to integrate the policy finance functions targeted at dispersed small businesses, reform the credit evaluation system, and package funding support throughout the lifecycle.
Furthermore, it has been proposed to supply an annual 30 trillion won in business funds (20 trillion in guarantees, 10 trillion in funds) through regional credit guarantee foundations and the Small Business Promotion Corporation, and to improve systems that ensure stable funding for small businesses by establishing a sales revenue recovery system. It is also planned to include individual business owners in the online, one-stop refinancing system and to ease loan interest burdens.
Additionally, support will be provided for 'burden reduction credits' up to a limit of 500,000 won to reduce management costs such as utilities, insurance premiums, and electricity bills, and purchase-only credit cards will be issued in voucher form up to a limit of 10 million won for small business owners with low to medium credit ratings. Support will also be provided for industrial accident insurance and fire insurance, as well as waiving national tax credit card payment fees.
◇Establishment of a presidential committee for small business support and introduction of a transparent management fee system…
Candidate Kim also pledged to establish a presidential committee for 'supporting small businesses and self-employed individuals' to integrate policy coordination and crisis response functions. The intent is to establish a comprehensive support system at the government level to immediately respond to the diverse needs of small business owners.
Additionally, a transparent management fee system will be introduced to protect commercial tenants, and an expansion of the protected rental target will also be pursued. The aim is to gradually extend the management fee transparency target, which is currently limited to office buildings with more than 50 households and commercial spaces, to all commercial buildings. Plans were also announced to promote competition laws to prevent anti-competitive practices by monopoly platforms.
In addition, in order to solve the labor shortage, plans are in place to expand the permissible occupations and duration of stay for foreign workers (E-9) and to allow domestic international students to transition to non-professional employment. It has also been stated that emergency loans for tourism small businesses affected by forest fires and discount coupons for travelers will be provided.
In addition, a five-year master plan for the construction of parking lots will be established to address the parking issues faced by traditional markets, and promises have been made to establish small business centers and specialized national research institutions, as well as to strengthen marketing capabilities. There are plans to expand the budget and support for small business owners.
The People Power Party Policy Comprehensive Headquarters noted, "We will continue to showcase promises to create a new Korea every day going forward."