Yoon: "Abolishing 18 'Shadow Tax' Levies... 2-Year Suspension on 263 Regulations"

Presiding Over the Emergency Economic and Livelihood Meeting
Reduction of 14 Charges Including Departure Payment Tax
Alleviating Small Business Burdens Through Expanded Use of Onnuri Gift Certificates

President Yoon Suk-yeol announced on the 27th that he will "reorganize the burden charges, which are 'shadow taxes,' and strengthen the management system." Since burden charges have caused controversies over double taxation, the plan is to abolish 18 types of burden charges at once and reduce charges in 14 areas where immediate abolition is difficult.

On the same day, President Yoon held an emergency economic and livelihood meeting at the Yongsan Presidential Office to review issues related to burden charges, deregulation, and other livelihood matters.

President Yoon first stated, "Recently, with the semiconductor market recovering, exports have increased, and the employment rate has set a record high for 25 consecutive months, showing an overall economic recovery trend," adding, "We will do our best to reduce the burden on the people and increase income so that the warmth of economic recovery spreads quickly and livelihoods are fully restored."

The government's plan to abolish and reduce burden charges is a measure following President Yoon's directive to review burden charges from the ground up. Earlier, on January 16, President Yoon instructed at the Cabinet meeting, "All ministries should review all burden charges from a zero base."

[Image source=Yonhap News]

President Yoon emphasized, "The president will reorganize burden charges at a bold and innovative level that no previous administration has pursued," and added, "While only 11 charges were reduced over the past 20 years, this time we will abolish 18 charges at once, including the movie theater admission charge imposed on movie tickets."

Among other significantly reduced burden charges is the departure tax. The current departure tax of 11,000 won will be lowered to 7,000 won, and the exemption age will be expanded from under 2 years old to under 12 years old.

To ease the burden on small and medium-sized enterprises (SMEs) and small business owners, 263 regulations will be temporarily suspended for two years. President Yoon promised, "We will swiftly ease regulations that burden SMEs and small business owners," adding, "The usage of Onnuri gift certificates will be expanded to 'alleyway shopping districts,' and if it is proven that employers have thoroughly managed cases where foreign workers illegally absconded, they will be exempted from future personnel allocation disadvantages to prevent unfair treatment of employers."

Regarding everyday regulations, to alleviate housing insecurity among young people, the residence period for youth and newlyweds in Happy Housing will be extended from a maximum of 6 years to 10 years.

Additionally, to resolve management difficulties for SMEs, a total of 42 trillion won will be supplied. In this regard, President Yoon mentioned the currently implemented interest rate reduction plan worth 2.3 trillion won, stating, "The banking sector is preparing a support program worth about 600 billion won for vulnerable groups."

Furthermore, while thoroughly managing risks related to real estate project financing (PF), sufficient funds will be supplied to viable and normal business sites.