[2025 Economic Policy] Orange and Banana Prices Drop... Weekend Couples Each Get Monthly Rent Tax Credit

Government Announces Economic Policy Directions for This Year
Efforts to Alleviate Perceived Inflation and Living Cost Burdens

Develop Aging Government Buildings to Supply Youth Rentals
Increase Onnuri Gift Certificate Discounts for Lunar New Year Peak Season

The government will lower tariffs on imported fruits such as oranges, bananas, and pineapples this year to reduce the perceived inflation rate and ease the burden of living expenses. Dual-income weekend couples will be able to receive monthly rent tax credits individually. To alleviate difficulties faced by small business owners, the government has decided to expand the income deduction limit for contributions to the Yellow Umbrella Mutual Aid. For micro small business owners, the credit card income deduction rate will be doubled.

A fruit display at a large supermarket in Seoul. Photo by Yonhap News

On the 2nd, the government held a joint briefing with related ministries at the Government Complex Seoul and announced the '2025 Economic Policy Direction' containing these measures. This year's economic policy includes policies aimed at reducing the living expenses burden on ordinary citizens and strengthening tailored support for vulnerable groups such as youth, middle-aged and elderly, and small business owners.

Kim Beom-seok, First Vice Minister of Strategy and Finance, said, "We focused on domestic demand, especially construction and consumption, which are the biggest concerns in this economic policy." He added, "We expanded the Onnuri gift certificates and increased tax credits for micro small business owners. The government has mobilized all available means first."

Imported Fruit Prices to Decrease... Weekend Couples' Monthly Rent Tax Credit Reflected

The government plans to support a total of 11.6 trillion won this year for discounts on agricultural, livestock, and fishery products, as well as energy and agricultural food vouchers to stabilize living prices directly related to the lives of ordinary citizens. For 10 types of fruits including oranges, bananas, pineapples, mangoes, grapefruits, and avocados, the government will apply quota tariffs to stabilize supply and demand. In the first half of this year, the tariff rates for bananas (200,000 tons), pineapples (46,000 tons), and mangoes (25,000 tons) will be lowered from 30% to 0%.

The government will also pursue measures to reduce living expenses in the areas of food, clothing, and shelter. In the medical sector, plans will be prepared this year to innovate the nursing hospital caregiving service system, including workforce supply and demand. They will establish standard caregiving service guidelines to be implemented in the second half of the year and focus on building caregiving workforce management and quality control systems. The government will also promote a '4-package structural food burden relief' project, including strengthening private overseas agricultural development financial support.

In the housing sector, tailored support will be provided according to types. For dual-income weekend couples who live separately due to different workplaces, monthly rent tax credits will be allowed individually for each spouse with a household limit of 10 million won. The government plans to review the status of weekend couples and reflect specific criteria in this year's tax law amendment bill. The scope of income deduction will also be expanded so that income deduction benefits for jeonse (key money deposit) loan borrowers are maintained even if they refinance their jeonse loans.

Vice Minister Kim said, "We will consider various aspects and reflect the monthly rent tax credit for weekend couples." He explained, "Since there have been cases where the government applied retroactive measures in the past, it is difficult to say at this stage that '(the tax credit) will not apply this year but only next year.' We will review this further and announce it."

In the education sector, the scope of disclosure for past exam questions will be expanded not only to the questions but also to the answers, and measures to clarify the disclosure method, such as posting them on websites, will be pursued. In the financial sector, the government will supply a record 11 trillion won in policy finance for ordinary citizens. The loan limit for policy finance for ordinary citizens will be expanded, and the special debt adjustment by the Credit Recovery Committee will be extended for one year until the end of this year. Low-interest loans for low-income and low-credit youth will also be expanded.

Multiple ISA Accounts for Youth Asset Formation... Expanded Income Deductions for Small Business Owners

The government will also promote tailored support for vulnerable groups and improve secondary social mobility. For youth, the government plans to increase by 10,000 the number of work experience opportunities in the private and public sectors this year, focusing on job-related programs. The school social integration admission system will also be improved. Related indicators and scores will be increased in school operation evaluations, strengthening social integration admissions for autonomous private high schools. Preferential measures such as priority assignment and additional points will be considered for vulnerable groups applying to autonomous public high schools.

To support youth asset formation, the government will provide an 'asset formation promotion package.' If the maturity funds of accounts supporting asset formation for low-income groups, such as the Youth Tomorrow Savings Account, are lump-sum deposited into the 'Youth Housing Dream Subscription Account,' exceptions will be made up to 15 million won. The government is also considering allowing transactions of separate financial investment products other than installment savings in the Youth Leap Account. The one-account-per-person rule for Individual Savings Accounts (ISA) will be abolished to allow multiple accounts so that subscribers can operate various investment products.

The government will strengthen tailored housing support for youth by type. Procedures will be simplified to allow separate payment of housing benefits to vulnerable youth living apart from their parents, and more than 2,000 youth rental units will be supplied through the Old Government Building Complex Redevelopment Pilot Project. Dormitory installation will be promoted using closed school sites in urban areas so that university students can live in the city.

For small business owners, support will be provided to reduce costs and increase sales. The target of the New Start Fund will be expanded to business operators from April 2020 to November last year, and additional repayment deferrals will be considered for vulnerable borrowers who have received employment and re-startup education. To enable the rapid normalization of management for small and medium-sized enterprises facing difficulties, emergency management stabilization funds will be supplied as much as possible in the first half of the year and expanded further if necessary.

The government will include 'Baeknyeon Gage' (century-old stores) under the inheritance tax deduction according to the Small Business Act. The income deduction limit for contributions to the Yellow Umbrella Mutual Aid will also be expanded. For example, if income is below 40 million won, the limit, which was 5 million won previously, will increase to 6 million won this year. For micro small business stores with sales of 104 million won or less as of last year, the income deduction rate for credit card amounts will be temporarily increased from 15% to 30% for one year.

During the Lunar New Year peak season (January 10 to February 10), the discount rate for digital Onnuri gift certificates will be raised from 10% to 15%. When using Onnuri gift certificate affiliated stores that allow online shopping, a 5% discount coupon on product prices will be provided. During the Lunar New Year period, 15% of digital payment amounts will be refunded as digital gift certificates (up to 20,000 won per person). When purchasing goods worth 130,000 won with digital Onnuri gift certificates, a total discount benefit of 40,000 won (30%) will be received.