Government Announces Amendment to Raise Kim Young-ran Act Limits
"Reflecting Price Increases... Will Enhance Effectiveness"
The dining industry recently welcomed the government's legislative notice of a revision to the enforcement decree that raises the meal expense limit under the "Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission" (Kim Young-ran Act) from 30,000 won to 50,000 won.
On the 4th, the Korea Franchise Industry Association stated in a press release, "The increase in the meal expense limit under the Kim Young-ran Act is expected to serve as a positive signal for revitalizing the dining industry economy," adding, "This revision reflects the rise in dining prices and will enhance the effectiveness of law enforcement."
They continued, "The dining industry has faced unprecedented difficulties due to the sharp rise in prices caused by increases in raw material costs, labor costs, and public utility fees, as well as the COVID-19 pandemic and weakened consumer sentiment," and "With a surge in business closures and a decrease in the number of restaurant workers, revitalizing consumption is more urgent than ever."
The association addressed concerns that the government's decision to raise the meal expense limit might lead to higher food prices by explaining, "South Korea's dining market is already highly competitive," and "Very few dining businesses will implement additional price increases due to the raised meal expense limit."
Earlier, on the 2nd, the Korea Foodservice Industry Association also stated in a press release, "At this time when every customer is precious, it is very rare for dining business owners to make the poor decision of raising food prices to increase sales."
The association added, "We will continue to work with the government to resolve difficulties in the dining industry, improve regulations, and promote healthy industrial development."
Meanwhile, the Anti-Corruption and Civil Rights Commission plans to complete the legislative notice by the 9th of next month, then proceed with consultations with relevant ministries and Cabinet approval, aiming to implement the revision before the Chuseok holiday in mid-September.
Although not included in this revision, the Commission is also negotiating with the National Assembly to raise the gift value limit for agricultural, livestock, and fishery products and related processed goods to a permanent 300,000 won. Currently, the gift value limit for these products is 150,000 won, allowed up to twice that amount (300,000 won) only during holidays such as Chuseok and Lunar New Year.
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