Gov't rolled out new measures to help small biz owners, the self-employed
Arirang News
2018-08-22
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The South Korean government has rolled out measures to extend a helping hand to small business owners and the self-employed... burdened by sharp increases to the minimum wage for this year and next year.
For more details, our economics correspondent Kim Ji-yeon joins us on the phone.
Ji-yeon, give us the details.
Sure, the measures laid out by the government on Wednesday -- that'll take effect starting next year -- are in the form of providing financial support equivalent to over six billion U.S. dollars... around two billion dollars more compared to this year.
To lessen the burden stemming from the minimum wage hikes... the government says it's expanding the job stabilization fund to small businesses with five employees or less from the current 116 dollars to 134 dollars.
The government also says it'll lower the bar for small businesses that'll be excluded from paying value-added taxes in full amount to businesses with annual sales of 27-thousand dollars from the current 21-and-a-half-thousand dollars.
It says it'll expand tax credits -- a program that gives tax refunds to low-income households-- under the Earned Income Tax Credit Scheme... from the current 357-point-8-million dollars to 1-point-2-BILLION dollars.
New recipients in 2019 will be eligible for a 50-percent discount on their health insurance fees... while this year's recipients will receive a 30-percent discount next year.
The government will provide ten percent tax credits on monthly housing rent for diligent small business owners with composite income of less than 54-thousand dollars.
They're also eligible for a 15-percent tax credit for their medical and education expenses for a maximum of three years.
The package also includes a cut in credit card commissions and special loans of less than one-percent for small online business owners and private taxi drivers.
It'll also give groups of small businesses the right to recommend a member to be nominated for the Minimum Wage Committee to reflect their views on minimum wage increases.
The government plans to submit related bills during the August parliamentary session.
Back to you.
For more details, our economics correspondent Kim Ji-yeon joins us on the phone.
Ji-yeon, give us the details.
Sure, the measures laid out by the government on Wednesday -- that'll take effect starting next year -- are in the form of providing financial support equivalent to over six billion U.S. dollars... around two billion dollars more compared to this year.
To lessen the burden stemming from the minimum wage hikes... the government says it's expanding the job stabilization fund to small businesses with five employees or less from the current 116 dollars to 134 dollars.
The government also says it'll lower the bar for small businesses that'll be excluded from paying value-added taxes in full amount to businesses with annual sales of 27-thousand dollars from the current 21-and-a-half-thousand dollars.
It says it'll expand tax credits -- a program that gives tax refunds to low-income households-- under the Earned Income Tax Credit Scheme... from the current 357-point-8-million dollars to 1-point-2-BILLION dollars.
New recipients in 2019 will be eligible for a 50-percent discount on their health insurance fees... while this year's recipients will receive a 30-percent discount next year.
The government will provide ten percent tax credits on monthly housing rent for diligent small business owners with composite income of less than 54-thousand dollars.
They're also eligible for a 15-percent tax credit for their medical and education expenses for a maximum of three years.
The package also includes a cut in credit card commissions and special loans of less than one-percent for small online business owners and private taxi drivers.
It'll also give groups of small businesses the right to recommend a member to be nominated for the Minimum Wage Committee to reflect their views on minimum wage increases.
The government plans to submit related bills during the August parliamentary session.
Back to you.
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