People Power Party Unveils Small Business Support Pledges
Presidential Task Force for Small Business Owners and Self-Employed to Be Established
Cashback and Digital Sales Platforms to Be Developed
Support for Small Business Funds and Easing of Loan Interest Burdens
On May 13, the People Power Party announced a set of pledges aimed at revitalizing local commercial districts, including a plan to increase the income tax deduction rate for credit card spending at traditional markets from the current 40% to 50% as part of its presidential campaign promises. The party also pledged to establish a specialized bank for small business owners and self-employed individuals to help them respond to economic crises, as well as to create a presidential task force dedicated to supporting small businesses and the self-employed.
The party’s Policy Headquarters, led by Policy Committee Chairman Kim Sanghoon, unveiled these pledges as the first promise under the “New Daily Promise for the People of Korea” initiative at a morning event on the same day.
The local commercial district pledge consists of measures to boost sales for small business owners and the self-employed, as well as to provide financial and policy support. In addition to increasing the income tax deduction rate for credit card spending at traditional markets and extending the sunset period by three years, the People Power Party promised to expand the use of traditional market gift certificates in local commercial districts, offer up to 10% cashback on payments made with digital gift certificates, and increase the issuance volume of Onnuri gift certificates from 5.5 trillion won to 6 trillion won.
The party also plans to utilize “Home&Shopping” and “Public Home Shopping,” home shopping channels dedicated to small and medium-sized enterprises (SMEs), to establish a T-commerce channel specialized for SMEs and small business owners, creating new sales channels for them. In addition, the party pledged to support the development of an integrated consumer points system linking the government, credit card companies, and local governments, as well as a digital platform to boost domestic consumption.
To alleviate financial burdens, the party proposed establishing a specialized state-run bank for small business owners, integrating the currently fragmented policy finance functions for this group. They also announced plans to reform the credit evaluation system and introduce lifecycle-based financial support packages. Furthermore, the party pledged to supply 30 trillion won annually in business funds (20 trillion won in guarantees and 10 trillion won in direct funding) through regional credit guarantee foundations and the Small Enterprise and Market Service, and to improve systems to ensure stable funding for small business owners, such as by establishing a payment collection system. The online one-stop refinancing loan system will also be expanded to include sole proprietors, thereby reducing their interest burden.
Additionally, the party announced a “burden relief credit” program, providing support of up to 500,000 won to help reduce business operating costs such as utility bills, insurance premiums, and electricity fees. For small business owners with mid- to low-credit ratings, the party pledged to issue purchase-only credit cards in the form of vouchers, with a limit of up to 10 million won. The party also promised to support industrial accident and fire insurance, as well as to exempt national tax payment card processing fees.
The presidential task force for small business owners and the self-employed will integrate policy coordination and crisis response functions to establish a comprehensive government-level support system. The aim is to promptly listen to the diverse needs of small business owners and adjust policies to suit economic and other circumstances.
Other pledges include increasing transparency in management fees to protect commercial tenants and expanding the scope of lease protection. The party plans to gradually extend the requirement for transparent management fee disclosure, which currently applies only to officetels and commercial buildings with 50 or more units, to all commercial buildings. The party also announced plans to promote competition laws and other measures to prevent anti-competitive practices by monopoly platforms.
To address labor shortages, the party proposed expanding the range of occupations and length of stay permitted for foreign workers (E-9 visa holders), as well as allowing international students residing in Korea to switch to non-professional employment. The party also pledged to provide emergency loans and travel discount coupons to support small business owners in the tourism sector in areas affected by disasters such as wildfires. In addition, the party promised to develop a five-year master plan to support the construction of parking lots to address parking issues at traditional markets, establish a dedicated hall and specialized national research institute for small business owners, and provide support to strengthen their marketing capabilities. The party plans to increase the budget and expand support programs exclusively for small business owners as well.
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