“Peeing on the 3rd subsidy announcement”… Shall I take out the 4th grant card for President Moon?

President Moon Jae-in is giving a New Year’s address at the Blue House on the 11th. (Photo = Yonhap News)

[이데일리 김정민 기자]More than 15 years have passed since 2021. The controversy over the strengthening of quarantine measures following the re-proliferation of Corona 19 remains strong despite some easing measures last weekend. It is the aftermath of a wildfire of self-employed people who have been driven to the edge of the cliff due to the reinforced social distancing that lasted for nearly two months. As the current distance and the ban on private gatherings with more than 5 people have been extended for two weeks, the 2.5-stage measures in the metropolitan area and the second-stage measures in the non-metropolitan area, which began on the 8th of last month, have continued for more than 50 days. If business restrictions continue due to social distancing until the Lunar New Year holiday, there is a depressing prospect that self-employed people who suffer irrecoverable damage and sink one after another will appear.

At the’On-Off’ New Year’s press conference held by President Moon Jae-in on the 18th, questions about the president’s position and countermeasures on recent major issues are expected to be poured out. Among them, the president’s response to the support for self-employment at the edge of the cliff and countermeasures in the real estate market where white medicine is invalid is drawing attention.

Lee Jae-myung claims for national disaster support + special compensation… Problem is finance

The third disaster subsidy payment, focusing on the damage support caused by the re-proliferation of Corona 19, is being rapidly made. From the start of payment on the 11th to the 14th, 244,000 thousand people received 3,3949 billion won in 4 days. The supporting fund is paid to small business owners who have been banned from gatherings or business restrictions due to the third spread of Corona 19, or whose sales have decreased. The target audience is 2.8 million, and the budget is 4.0 trillion won. Businesses that are prohibited from collectively are given 3 million won, 2 million won for restricted businesses, and 1 million won each in cash. However, the general industry must have annual sales of 400 million won or less.

However, there is a complaining about “peeing on speech”, saying that the support funds were withdrawn like a hand so that “withdrawal at the same time as deposit” was made. There are voices of dissatisfaction that the amount is unreasonable considering the backlog of rent, utility bills, and loan interest.

There is a strong demand among self-employed people who have been struggling with the cause of’corona 19 quarantine’ to demand compensation for damages according to business restrictions and bans. The government has forcibly blocked the business and suffered losses, so we must compensate for the damage.

Due to the re-proliferation of Corona 19 and the decline in social distancing, credit card sales of small business owners in Seoul fell to 61% year-on-year. Unit=% [그래픽=이데일리 김정훈 기자]

Gyeonggi Gyeonggi Governor Lee Jae-myeong posted on Facebook on the 15th, not when he was concerned about deficit fiscal and clinging to the ratio of government bonds without any problems, but when he took advantage of his strength of having sufficient financial capacity compared to other countries to bridge the gap and revive the crisis overcoming the crisis. “Apart from support (selection or universal) for the damage suffered by the people from the corona, it is reasonable according to the constitutional spirit of’special compensation for special sacrifices’ for the people directly affected by the government’s collective ban or business restrictions. He emphasized that the’compensation’ system must be prepared quickly.” It is interpreted as a claim to proceed with the national disaster subsidy and compensation for the self-employed, respectively.

The ruling party and the Democratic Party are reviewing a bill that compensates for the damages of self-employed and small business owners caused by the government’s quarantine measures at the policy committee level. The problem is that Kang Hoon-sik, a Democratic Party lawmaker, said that in the current collective prohibition and time-limited industries, the minimum wage should be paid for a limited amount of time to compensate for the damage. According to Professor Kang’s office, it costs 729 billion won per month and 7.8 trillion won per year only to compensate for the damages caused by business bans and restrictions at the minimum wage level.

On the morning of the 11th, citizens are receiving counseling on the’support fund’ (third disaster support fund) at the Seoul Central Center of the Small Business Market Promotion Corporation. (Photo = courtesy of Yonhap News)

“You have to open it for multiple homeowners” Vs “Sell it before June”

There are two concerns about government real estate measures. This is the possibility of easing the real estate tax and housing supply plan. In particular, as measures to ease the real estate tax system, such as the middle and postponement of the housing capital gains tax, are flowing around the political world, attention is being drawn to what position President Moon will present at the press conference on the 18th. In the July 10 measures announced in July last year, the tax rate for multi-homed people was raised from 0.6 to 3.2 percent to a maximum of 6.0 percent, and the heavy tax rate for the transfer tax increased by 10 percentage points. The acquisition tax rate was also raised to a maximum of 12%, strengthening the taxation system at all stages from acquisition to possession and disposal.

As such, the government has come up with various measures to stabilize the real estate market, but the prices of apartments in the metropolitan area are high.

According to the Korea Real Estate Agency, the weekly apartment sale price in Seoul in the second week of January (as of the 11th) rose 0.07% from the previous week, recording the highest increase since the second week of July (0.09%), just after the announcement of the 710 measures last year. During the same period, weekly apartment rental prices in Seoul rose 0.13%.

In the political world, there is an opinion that apartment sales and jeonse prices in Seoul have continued to rise, and market uncertainties persist, so that the retreat of multi-homed people should be opened. On the other hand, as there is enough time before the tax rate hike in June, the government plans to focus on providing urban housing prior to the New Year’s Eve, along with the smooth implementation of the previously announced measures rather than reverting the tax reinforcement measures that have already been put forward.

The government plans to hold a briefing on the real estate market with related agencies on this day. At the briefing that day, it is known that the government will announce the progress of measures to stabilize the real estate market, strengthening regulations on loans, and crackdown on real estate disturbances. The Ministry of Strategy and Finance, the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, the National Tax Service, the National Police Agency, the Financial Supervisory Service, and the Seoul Metropolitan Government’s first-class public officials (the heads of each department) gave a briefing to discuss the policies and future plans that have been promoted in various fields such as supply, taxation, finance, and market disruption. I will explain. However, it is not expected to mention additional supply measures or tax easing, which have recently attracted attention in the market. This is because concrete plans have not yet been prepared or the position between the party and political parties has not been completed.

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