As the June 3 presidential election approaches, candidates are intensifying their pledge competition targeting small business supporters. Lee Jae-myung of the Democratic Party of Korea and Kim Moon-soo of the People Power Party have presented small business support policies as core economic pledges. While Lee has emphasized the expansion of local currency and debt relief, Kim has focused on establishing a presidential advisory group and tax support for traditional markets, offering different solutions across financial, tax, and distribution sectors.
According to political circles on the 15th, both candidates share a similar stance that the government should take responsibility for resolving the cumulative small business crisis since the COVID-19 pandemic, but their approaches are clearly different. Lee Jae-myung has focused on debt relief for small business owners and measures to stimulate distribution, while Kim Moon-soo aims to establish a presidential control tower and overhaul the funding supply system. The pledge from Lee Jun-seok has not yet been announced.
◇ Lee Jae-myung emphasizes 'distribution-centered' local currency expansion
Candidate Lee Jae-myung proposed 'the enhancement of household and small business vitality and the realization of a fair economy' as the third core keyword of his 10 major pledges. He included plans for the expansion of local love gift certificates (local currency), refinancing policy loans, and the introduction of a cap on delivery platform fees in his pledges. Regarding the loans concentrated on small businesses during the COVID-19 period, he stated, "We will prepare comprehensive measures from policy loan adjustments to debt relief."
He also revealed plans to establish a dedicated internet bank for small business owners and expand low-interest policy funds to enhance financial access for small business owners. To prevent 'trick increases' in rent, he plans to promote the disclosure of detailed building management costs, and include plans for expanding sick leave benefits and creating parental leave benefits to guarantee the 'right to rest when sick' for self-employed individuals.
The restructuring of distribution is also a key aspect of the fair economy pledge. Plans include introducing a cap on delivery app fees and banning discriminatory brokerage fees, alongside pursuing the 'Business Renaissance 2.0' project to revitalize traditional markets and alley businesses. As a means to boost consumption, he designed a structure to circulate money in alley businesses through the expansion of the issuance of Onnuri gift certificates and local currency.
Lee's policy stance is strongly characterized by inheriting the 'fair economy' framework of the Moon Jae-in administration. The term fair economy was first used officially by the Moon Jae-in government in 2017. At that time, the government described fair economy as 'an institutional foundation for correcting unfairness and leveling the playing field to enable income-led growth and innovative growth.'
◇ Kim Moon-soo emphasizes 'integrated response' with presidential advisory group
Kim Moon-soo promised to establish a 'support group for small business owners and self-employed individuals' directly under the president to integrate various support functions. He plans to concentrate on practical measures such as special loans for living expenses, expanding direct policy loans, and providing reemployment funds after business closures, structuring the government as a control tower for immediate responses.
The income tax deduction rate for credit card payments at traditional markets will be increased from the current 40% to 50%, and the sunset clause will be extended by three years. He also suggested expanding credit card cashback. Through the establishment of a national policy bank specialized in the middle and low-income population, he plans to integrate dispersed financial functions from institutions like the Korea Credit Guarantee Fund, local credit guarantee funds, and the Small Enterprise and Market Service, increasing the proportion of direct loans for small business policy funds to 90%.
Policies that respond to significant demands, including expanding employment insurance and industrial accident insurance support, providing utility vouchers, increasing reemployment funds post-business closure, and extending the stay period for foreign workers, were also included. Notably, it was emphasized that the government and banks would contribute 30 trillion won annually for guarantees and funds related to small business financing.
Policies for improving employment conditions for small businesses also included revisions to the foreign labor policy. The current condition of the E-9 visa that requires re-entry after 4 years and 10 months will be amended to allow residence for up to 12 years without leaving the country, with an expansion of allowed occupations planned.
Lee Jun-seok of the Reform Party did not separately present measures related to small business or self-employed individuals in his 10 major pledges. He is focusing on tax cuts and deregulation centered around a small government pledge rather than distribution and welfare, leading to a relatively lower emphasis on policies for vulnerable groups.
Kwon Young-guk of the Democratic Labor Party proposed pledges focused on restructuring the market, such as expanding debt relief for self-employed individuals and introducing public wholesale markets. His approach aims to abolish the auction system and establish a public market system based on direct transactions for agricultural products.
◇ Concerns of 'moral hazard' regarding the benevolent pledges of presidential candidates
With tailored measures for small businesses emerging, both Lee Jae-myung and Kim Moon-soo have included plans to strengthen debt adjustment in their pledges, raising concerns that populist debt relief may lead to moral hazard.
The Korea Development Institute (KDI) emphasized in its '2025 Economic Outlook' announced on the 14th that financial support for chronically unviable firms should be restrained, stating, "Financial support for vulnerable sectors should be applied differentially based on the repayment ability of individual borrowers."
Jeong Gyu-cheol, head of the KDI Economic Outlook Division, noted, "These principles can also apply similarly to individual business owners," warning that indiscriminate debt relief could actually increase social burdens.