Economic Ministers' Meeting Presided Over by the Deputy Prime Minister
The government has announced plans to provide up to 43.2 trillion won in liquidity to help small business owners and small and medium-sized enterprises (SMEs) ease funding shortages during the Chuseok holiday. The government will also extend deadlines for various tax payments, including corporate tax, for companies affected by customs duties or heavy rainfall, and will relax requirements for hiring foreign workers. In addition, the scale of policy finance for low-income and vulnerable groups, including microfinance support for young people and job seekers, will be expanded to 114 billion won.
On September 15, Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul presided over a joint economic ministers' meeting with relevant ministries and announced these measures as part of the "Chuseok Livelihood Stability Measures."
Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol is speaking at the 'Chuseok Livelihood Stability Measures Party-Government Consultation' held at the National Assembly Members' Office Building on September 15, 2025. Photo by Kim Hyunmin
Record-high 43.2 Trillion Won in Funding... Extension of Corporate Tax Payment for Companies Hit by Customs Duties
The government will provide 43.17 trillion won in new funding to small business owners and SMEs through loans and guarantees to supply liquidity and ease funding difficulties. The loan breakdown is as follows: 220 billion won from the Bank of Korea, 6.2 trillion won from state-run banks, 700 billion won from the Korea SMEs and Startups Agency, and 32 trillion won from commercial banks, totaling 39.12 trillion won. The guarantee amount is 4.05 trillion won. This is the largest amount ever, 140 billion won more than the previous Chuseok's target of 42.96 trillion won.
Additionally, the government will underwrite 2.5 trillion won worth of accounts receivable insurance around Chuseok to reduce the risk burden of SMEs engaged in credit sales. It will also provide 5 billion won in low-interest funding to traditional market merchants for purchasing seasonal goods.
To help small business owners using loans backed by regional credit guarantee foundations, the government will supply 2.5 trillion won in conversion guarantees this year to extend loan repayment periods by up to five years. The requirements for refinancing high-interest loans (over 7%) from banks and non-bank institutions to low-interest loans (4.5%) will be significantly eased.
The government will also provide tax support, such as early payment of VAT and customs duty refunds, for small business owners and export SMEs facing management crises. For export companies affected by customs duties, businesses hit by heavy rainfall, and industries such as petrochemicals, steel, and construction, the deadline for interim corporate tax payments will be extended by two months, from August to October.
The government is reviewing the relaxation of E-9 visa requirements for hiring foreign workers in the restaurant industry.
400 Billion Won in "Sunshine Loan Youth" Microfinance Support for Young People
By November, the government will provide 114.5 billion won in policy finance to low-income, vulnerable, and young people. The Sunshine Loan Youth program, a microfinance support project for young people and college students, will supply 40 billion won, while 54.5 billion won in guaranteed loans will be provided over two months to those with the lowest credit ratings who cannot access institutional finance.
The guarantee limit for the Worker Sunshine Loan and Sunshine Loan Bank, which support low-income and low-credit workers, will each be increased by 5 million won, and the guarantee limit for Sunshine Loan 15 will be raised by 6 million won. The government will also advance the payment of 3 trillion won in earned income and child tax credits to low-income households by one month ahead of the statutory deadline. To prevent wage arrears and stabilize the livelihoods of workers with unpaid wages, the funding for wage arrears-related loans will be increased by 8.1 billion won, from 70.4 billion won to 78.5 billion won.
Furthermore, to ease the excessive medical expenses burden on low-income groups, the scale of catastrophic medical expense support will be expanded by 60 billion won to 200.4 billion won. Vulnerable tenants at risk of eviction in public rental housing (LH) will receive up to 8 million won per household for rent and management fees. Low-interest (1.7%) student loans will be provided for the second semester to reduce the educational cost burden on college students.
Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul is delivering opening remarks at the "Chuseok Livelihood Stability Measures Party-Government Meeting" held at the National Assembly Members' Office Building in Yeongdeungpo-gu, Seoul, on the 15th. (Source: Ministry of Economy and Finance)
172,000 Tons of Agricultural, Livestock, and Fishery Products Supplied... 10 Trillion Won in Local Currency Issued
The government will supply a record 172,000 tons of agricultural, livestock, and fishery products as seasonal goods. It will invest 90 billion won to support discounts of up to 50% and apply additional quota tariffs to six types of food ingredients, such as chips and frozen fruits, bringing the total number of items subject to quota tariffs to 27 by the end of the year.
To stabilize the rice supply, the government will release 55,000 tons of government rice reserves and operate a joint inspection system with relevant ministries to monitor unfair practices such as illegal distribution and price gouging on a daily basis.
To boost local consumption, the second round of livelihood recovery consumption coupons will be implemented without delay, and 10 trillion won in local gift certificates will be issued after September at increased discount rates. The eligibility for senior sports vouchers will be expanded from basic pension recipients aged 65 and older to all individuals aged 65 and older.
Fifteen million special disaster area accommodation coupons will be issued, and the number of SME workers eligible for domestic travel support will be increased from 150,000 to up to 170,000. The largest-ever "Autumn Travel Campaign," offering up to 50% discounts on transportation, accommodation, and travel products, will run through the end of November and support 630,000 people.
To help families separated by distance stay in touch without worrying about data usage, free video calls will be provided during the Chuseok holiday period. The four weeks surrounding Chuseok will be designated as a special parcel delivery management period, with intensive management to ensure smooth delivery and prevent overwork among delivery workers.
Fuel price-linked subsidies for gasoline, diesel, and natural gas will be extended for two months, through October. Previously, the government extended fuel tax reductions-10% for gasoline and 15% for diesel and liquefied petroleum gas (LPG)-through October.
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