[Changes in the Second Half of the Year] Income Deduction for Movie Theaters... Personal Information Disclosure for Habitual Multi-Home Debtors

Starting from the 1st of next month, movie ticket payments made by credit card or other means will be eligible for income tax deductions. This applies to wage earners with a total annual income of 70 million KRW or less, whose credit card usage exceeds 25% of their total income, similar to the existing cultural expense income deduction.

On the 30th, the government published a booklet titled "Changes Starting from the Second Half of 2023" containing these details.

The income deduction rate for movie ticket expenses is 30%, with a combined deduction limit of 3 million KRW for cultural expenses including traditional markets, public transportation, book purchases, and performances. Credit cards, debit cards, and cash receipts are all acceptable.

From next month, travelers will be able to report taxable goods and conveniently pay taxes through a mobile app. When taxable goods are reported via the app, a payment notice with the automatically calculated tax amount will be issued on mobile. Currently, this service is available only at Incheon Airport (T2) and Gimpo Airport, but it will be expanded to all airports nationwide in the future.

The foreign investor registration system will be abolished. Since 1992, foreign investors had to pre-register with the Financial Supervisory Service when investing in listed stocks. The government plans to abolish this system starting December 14th to remove obstacles for global investors investing domestically. Going forward, foreign investors will be able to conduct transactions using passport numbers and LEI (Legal Entity Identifier) codes.

From the second half of this year, the flexible individual consumption tax rate system for automobiles will end. As part of COVID-19 response measures, the basic tax rate was reduced from 5% to 3.5%, with a flexible tax rate reduction of 30% capped at about 1 million KRW, but the rate will revert to the original from the second half of the year.

Personal information such as name, age, and address of habitual multi-home debtors will be disclosed. This is to prevent fraud by malicious landlords amid a recent surge in jeonse (long-term lease) fraud. Disclosure targets are landlords with two or more claims totaling over 200 million KRW within three years. Upon disclosure, not only personal information but also details such as unpaid deposit amounts, duration, and Housing & Urban Guarantee Corporation (HUG) subrogation payments can be checked.

Additionally, support and housing stability measures for victims of jeonse fraud will be implemented starting from the 2nd of next month. Recognized victims will be supported to acquire the leased property through auction or, if they wish to continue residing, the government will purchase and supply it as rental housing. Victims facing financial hardship will receive emergency credit loans, living expenses, and medical expense support.

From the second half of the year, the mileage accumulation frequency for the Altteul Transportation Card will increase from a maximum of 44 times to up to 60 times. With this increase, the maximum monthly mileage accumulation will rise from 11,000?48,000 KRW to 15,000?66,000 KRW.

By the end of this year, support will be enhanced not only to strengthen the competitiveness of the materials, parts, and equipment industry but also to stabilize supply chains. Under the expanded and revised "Special Measures Act for Strengthening Competitiveness and Stabilizing Supply Chains of Materials, Parts, and Equipment Industry," the Minister of Trade, Industry and Energy will designate items with high import dependence on specific countries or significant impact on the domestic economy as "Supply Chain Stabilization Items" and may recommend stockpiling to manage supply chain risks.

Outdoor movement of robots will also be permitted. Previously, robots were prohibited from traveling on sidewalks and parks, but now commercialization of outdoor robots with ensured safety will be possible. Additionally, a safety inspection system for reused batteries will be implemented to allow used batteries from electric vehicles and others to be reused in energy storage systems (ESS) instead of being discarded.

Furthermore, starting next month, a "timeout system" will be introduced to process permits and approvals for advanced strategic industries such as semiconductors and secondary batteries within a maximum of 60 days upon request for expedited processing. To secure talent for advanced strategic industries, the scope of workforce training will be expanded, and university faculty will be allowed to concurrently hold corporate executive or employee positions or take leave of absence.