Korean Party Announces Small Business Pledges: "Will Raise Tax Threshold to 100 Million Won"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hye-min] The Liberty Korea Party announced on the 20th its small business pledge for the April 15 general election, which centers on raising the simplified taxation threshold for small business owners, including self-employed individuals, to 100 million won.

Kim Jae-won, chairman of the Policy Committee, and the Liberty Korea Party's '2020 Hope Pledge Development Group with the People' unveiled the 'Small Business Pledge' in the afternoon, aiming to reduce burdens from taxes, labor costs, and delivery app commissions, while strengthening support in social insurance sectors.

The Liberty Korea Party pledged to first raise the simplified taxation (taxation imposed on individual business owners) threshold applied to small business owners from 48 million won (annual sales of the previous year) to 100 million won. The party stated, "Since it was set in 1999, it has been frozen for over 20 years," adding, "Considering inflation since 2000, there is a diagnosis that the threshold has effectively been lowered, so the taxation threshold must be made more realistic."

They also promised to lower the burden on small business owners by including companies' payment capacity and economic conditions in the criteria for determining the minimum wage. The pledge includes restructuring the minimum wage by industry and size and expanding the inclusion of incidental costs such as lodging and meals, reflecting the existing Liberty Korea Party's minimum wage policy direction.

The party also presented a pledge to improve the system, recognizing that the monopoly structure of the delivery app market is increasing advertising fees and brokerage commissions for self-employed individuals. The Liberty Korea Party emphasized, "We will proactively respond through active communication with the industry to improve high advertising fees and discriminatory commission systems," and "We will strengthen monitoring and supervision under the Fair Trade Act and related laws against abuse of market-dominant positions caused by market monopoly."

Additionally, they announced plans to expand welfare for small business owners to the level of farmers, fishermen, and workers. The Liberty Korea Party promised, "We will increase support in social insurance sectors such as employment and business closure and incorporate small business owners into the social safety net."