[Asia Economy Reporter Kim Bo-kyung] Small business owners have urged the government to establish laws and systems to alleviate the burden of heating costs.
The Korea Federation of Small and Medium Business (KSMB) held a "Press Conference Urging Measures for Small Business Heating Costs" on the 21st at the KSMB main conference room in Yeouido, Seoul. This press conference was organized to highlight the need for electricity and gas fee support measures for small business owners, comparable to those for vulnerable groups.
The KSMB stated that this winter, electricity rates increased by a total of 32.4 KRW (30%) per kWh compared to a year ago, and city gas rates rose 37.1% for Business Use 1 and 39.8% for Business Use 2 over four times last year. According to a heating cost survey conducted last month, 51.6% of small business respondents reported that their heating costs increased by more than 30%.
Oh Se-hee, president of KSMB, said, "Small business owners, who spent a harsh December without even the year-end sales boost due to weakened consumer sentiment, were hit by a heating cost bomb more frightening than last month's cold wave," warning that "if the increase in heating costs is reflected in consumer prices, it will lead to inflation and increased consumer burden." He added, "The decrease in sales due to price increases will inevitably lead to a vicious economic cycle."
He also noted, "France has reduced electricity taxes by 10.8 trillion KRW, and Spain has lowered the value-added tax on electricity bills to 10%, implementing measures reflecting the worsening economic situation."
President Oh emphasized, "Our government should also legislate support measures such as energy vouchers and rate discounts that can minimize cost burdens in the current complex crisis situation and prepare stable support plans."
As measures to overcome the crisis, the KSMB requested the government and the National Assembly to ▲ legally include small business owners as an energy-vulnerable group to provide energy support ▲ alleviate heating and cooling cost burdens through energy efficiency improvement projects targeting small business owners ▲ prepare insurance products exclusively for small business owners to cope with rapid energy cost increases.
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