High-Level Party-Government Meeting Held on the 25th
Discussion on Chuseok Price Stabilization Measures, Support for Small Businesses and SMEs
The government, the Presidential Office, and the People Power Party have decided to newly provide holiday funds worth 40 trillion won to small business owners and small and medium-sized enterprises (SMEs) ahead of Chuseok. They also plan to release a record-high volume of 170,000 tons of 20 major Chuseok holiday staple products such as cabbage, apples, and pears.
On the 25th, the government, the Presidential Office, and the People Power Party held a high-level meeting at the Prime Minister’s official residence in Samcheong-dong, Jongno-gu, Seoul, and finalized measures to stabilize prices during the Chuseok holiday and support plans for small business owners and SMEs, according to Han Jia, the chief spokesperson of the People Power Party.
The ruling party and government decided to lower the loan interest rates on support funds from the Small Enterprise and Market Service and the Small and Medium Business Corporation to 2.5%, and to uniformly apply a 0.5% guarantee fee rate for the Credit Guarantee Fund and Industrial Bank of Korea’s agreement programs regardless of the limit.
Additionally, highway tolls will be waived during the Chuseok holiday period, and discounts will be offered for return trips by KTX and SRT trains. Palaces, royal tombs, and historic sites will also be opened free of charge, with various cultural and experiential programs planned.
Regarding measures to stimulate consumption, the ruling party and government will consider temporarily increasing income tax deductions for increased spending at traditional markets and credit card usage in the second half of this year.
Measures to stabilize the supply and demand of rice and Korean beef have also been prepared. The ruling party and government will purchase an additional 50,000 tons of private stockpiled rice from the 2023 harvest and plan to announce early measures to stabilize rice prices during the harvest season before mid-September. A mid- to long-term development plan for the Korean beef industry will also be prepared next month.
Meanwhile, the People Power Party has requested the government to designate October 1st, the 76th Armed Forces Day, as a temporary public holiday. The government stated through the chief spokesperson that it will comprehensively consider various factors such as military morale, consumption stimulation, and corporate burdens before making a decision.
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