Busan Chamber of Commerce Holds Business Meeting with Busan Regional Tax Office Chief

Proposal to Increase Income Tax Reduction Rate and Limit for Young SME Employees
Request to Ease Post-Management Requirements for Business Succession Deductions for Smoother Business Succession

The Busan Chamber of Commerce and Industry (Chairman Yang Jaesaeng) held a meeting at the Busan Chamber's International Conference Hall on the 10th, inviting Lee Dongwoon, Commissioner of the Busan Regional Tax Office, with around 40 local businesspeople in attendance.

This meeting was organized to directly communicate the difficulties faced by local companies to the tax authorities and to discuss tax support measures, as ongoing high interest rates and inflation have led to economic stagnation and increased uncertainty for export companies due to the strengthening of protectionism by the U.S. administration.

Prior to the meeting, the Busan Regional Tax Office explained the basic direction of national tax administration and tax support measures for small and medium-sized enterprises, and expressed its commitment to working together to revitalize the local economy amid the economic downturn.

During the meeting, the Busan Chamber delivered four proposals containing support measures to alleviate the financial burden faced by local SMEs and to help companies respond to the recession on their own.

The main proposals included raising the income tax reduction rate for young employees under the "Income Tax Reduction System for SME Employees" from 90% to 100% and increasing the annual reduction limit from 2 million won to 3 million won, in order to support the recruitment of young talent for local SMEs suffering from severe labor shortages.

Additionally, to facilitate smooth business succession for local companies, the Chamber requested that the employment maintenance requirement, currently set at 90%, be eased to 80%. Other requests included raising the basic limit for SME business promotion expenses and exempting credit card fees when paying national taxes by credit card, among various tax support measures.

Reflecting the challenging economic situation, local businesspeople who attended the meeting actively voiced various tax-related difficulties faced on the ground, in addition to the proposals prepared by the Busan Chamber of Commerce and Industry.

In his opening remarks, Yang Jaesaeng, Chairman of the Busan Chamber of Commerce and Industry, said, "Local companies are experiencing severe management difficulties due to the prolonged economic downturn and growing internal and external uncertainties," and conveyed his hope that "the tax authorities will pay special attention so that their policies can provide practical help to business management during these tough times."

In response, Lee Dongwoon, Commissioner of the Busan Regional Tax Office, said, "Despite these challenging times for business activities, I would like to thank all local entrepreneurs who continue to contribute to the national economy through job creation and faithful tax payment. We will actively reflect taxpayers' voices in tax administration and provide maximum support from a tax perspective to help overcome the crisis in the local economy."

Busan Chamber of Commerce and Industry is holding a meeting with businesspeople invited by the Busan Regional Tax Office Commissioner and taking a commemorative photo.