Small Business Insurance Premium and Utility Bill Payment Deferral Extended by 3 Months (Update)

[Asia Economy Sejong=Reporter Kim Hyewon] The government will extend the payment deferral measures for social insurance premiums and utility bills for small business owners struggling due to COVID-19 for three months until the end of June. The maturity extension and repayment deferral measures for loans from government funds, including the Small and Medium Business Promotion Fund and the Small Business Promotion Fund, will also be additionally implemented until the end of September.

On the 3rd, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held an emergency economic central countermeasure meeting at the government Seoul office to discuss whether to extend and supplement the temporary support measures for small business owners and vulnerable groups, which were set to expire at the end of March and April, and decided on these measures.

Deputy Prime Minister Hong stated, "First, we intend to support a three-month payment deferral until the end of June for employment and industrial accident insurance premiums, electricity, and city gas charges, which are directly linked to the burden of small business owners, for the April to June period."

He also said, "Regarding loans from government funds such as the Small and Medium Business Promotion Fund and the Small Business Promotion Fund, we will implement an additional six-month maturity extension and repayment deferral until the end of September."

He added, "Regarding the maturity extension and repayment deferral of loans across all financial sectors, this will also be submitted for discussion at today's meeting, and the results will be announced immediately after the meeting."

Earlier, on the 28th of last month, Financial Services Commission Chairman Ko Seung-beom revealed at a meeting with heads of commercial banks that the maturity extension and repayment deferral measures for small business loans in the financial sector would be extended by six months.

Deputy Prime Minister Hong said, "The blanket extension of the deadline for filing and payment of value-added tax in the second half of last year will be pursued to end as scheduled at the end of March, considering the overlap with the scheduled payment deadline for the April VAT provisional notice, but if taxpayers individually apply for an extension, it will be allowed as much as possible." He added, "Other tax support measures, such as the discretionary extension of corporate tax and comprehensive income tax payment deadlines, will continue."

Deputy Prime Minister Hong stated, "The extension of the designation of special employment support industries, the relaxation of the foreign currency Liquidity Coverage Ratio (LCR) regulatory ratio, and the extension of the employment activity period for foreign workers will be separately announced within this month after a comprehensive review of business conditions, quarantine, and market situations." Currently, the government is considering easing the foreign currency LCR regulatory ratio from 80% to 70%.