Illustration = Reporter Chu Deok-young [email protected]
If annual income exceeds 1 billion, the maximum tax rate of 45% is applied
75% of transfer tax for 3 house owners from June
The number of houses includes sales rights.
30% deduction of newspaper subscription fee
○ Increase in the highest income tax rate =From January, the highest income tax rate will rise from 42% to 45%. The increase in income tax applies to both earned income, comprehensive income, and real estate capital gains. Currently, when the tax base exceeds 500 million won, the maximum tax rate is 42%, but from next year, when the target exceeds 1 billion won, a 45% tax rate will be applied.
○ Increased tax rate =Multi-homed people (those with 3 or more houses or those who have 2 houses in the area subject to adjustment) increase the tax rate from 0.6 to 3.2% to 1.2 to 6.0%. The tax rate is also increased from 0.5-2.7% to 0.6-3.0% for one homeowner and two other homeowners outside the area subject to adjustment. The upper limit of tax burden for multi-homed people is strengthened from 200% to 300%. The plan to increase the comprehensive real estate tax is applied based on the house held on June 1 of next year, and tax is imposed in December of next year.
○ Increase in transfer tax for multi-homed people =The median taxation rate for capital gains tax applied when multi-homed people sell their houses in the area subject to adjustment will be 10 percentage points higher than before. Accordingly, the maximum tax rate for two-homed people is 65%, and for three-homed people, 75%. The transfer tax rate for houses held for less than one year is also rising from the current 40% to 70%, and for houses held for 1-2 years, the basic tax rate (6~42%) is raised to 60%. The changed tax rate will be applied from houses sold after June 1 of next year.
○Including the number of housing units for sales rights =Now, when calculating the transfer tax, the right to sell is not included in the number of houses. However, pre-sale rights acquired after January 1 of next year are included in the number of houses. Even if there is a single sale right and a house in the area subject to adjustment, the “multi-housing transfer tax intensive section” applies. However, this does not apply to the pre-sale rights currently held.
○Expanded the target of simplified VAT tax =The subject of simplified VAT taxation will be expanded from less than 48 million won in annual sales to 80 million won. However, the current standard of 48 million won is maintained for real estate rental business and taxable entertainment venues.
○ Newspaper subscription fee income deduction =From January, subscription fees for paper newspapers can also be deducted from income. The deduction rate is 30% of the subscription fee for paper newspapers. The deduction limit is up to 1 million won, including book and performance expenses, and admission to museums and art museums.
The minimum wage is raised to 8,720 won per hour
Compulsory workers’ compensation insurance for special employees such as insurance planners and couriers
Strengthening government support for child care services
○ Fully implemented free high school education =From next year, free high school education will be fully implemented. The policy that was implemented for the third grade of high school in the second semester of this year will be expanded. Accordingly, high school students will receive an annual average of 1.6 million won per person for admission, tuition, and textbook fees starting next year and 4.8 million won for three years. However, independent private high schools and private special purpose high schools, where the principal autonomously determines the entrance fee and tuition, are excluded from the free education.
○Minimum wage increase=From January 1 of next year, the minimum wage will increase to 8,720 won per hour. In terms of daily wage, it is 69760 won for 8 hours. The monthly conversion amount is 18,22,480 won including weekly vacation pay. The minimum wage applies equally to all workplaces.
○ Mandatory industrial accident insurance for special employees=Beginning in July of next year, special employment workers must subscribe to all workers’ compensation insurance, except for one or more months of closure due to illness or injury, and one month or more of closure due to reasons attributable to the employer. 14 occupations, including insurance agents, quick-service drivers, courier drivers, door-to-door salespeople, and truck owners, are eligible.
○ Strengthening child care services =The amount of time and cost support for child care services supported by the government will increase. The service usage limit is extended from 720 hours per year to 840 hours per year. The share of government support in the usage fee will also increase from 80% to 85% for 75% or less of median income. For families with a median income of less than 120%, the share of government support will increase from 55% to 60%.
○Expansion of basic pension payment=The amount of basic pension support provided to senior citizens aged 65 years or older who are below 70% of their income will expand. Currently, 0~40% of the lower income earns up to 300,000 won per month and up to 250,000 won for 40~70%. However, starting next year, the maximum support range for the elderly in the 40-70% range will increase to 300,000 won.
Detached houses should also be discharged separately from colorless PET bottles.
Real-time disclosure of fine dust in underground history
Up to three times compensation for stealing ideas from small and medium-sized venture companies and startups
○Expanded separation of transparent PET bottles =Separate discharging of transparent PET bottles in apartment houses, which began on December 25 this year, will be expanded to detached houses from next December. A separate collection box was installed to separate and dispose of colorless PET bottles from other plastics. However, the government plans to operate the system as a settling period until next June to provide exclusive collection bags and to intensively check the discharge situation of apartment houses.
○ Real-time measurement and disclosure of ultrafine dust concentration in underground history =From next April, the concentration of ultrafine dust in all underground station platforms nationwide will be measured and disclosed in real time. It is in accordance with the revision of the Indoor Air Quality Management Act. Violation of the obligation to install ultra-fine dust measuring devices or failure to disclose the results will result in a fine of up to 5 million won.
○Introduction of a triple compensation system for idea takeover =Beginning April 21, next year, those who deliberately take the idea must compensate up to three times the amount recognized as damage. This is to protect the ideas of small and medium-sized venture companies and startups.
○Enforcement of electrical equipment safety rating system=The safety rating system will be implemented from April next year for electric facilities installed in facilities vulnerable to electric disasters such as traditional markets and multi-use facilities. Previously, the management was divided into five stages: A (Excellent) B (Good) C (Caution) D (Warning) E (Danger). The safety level can be changed through electrical equipment improvement and repair.
○ Private-led venture confirmation system implemented =From February 12 next year, the Venture Business Confirmation Committee composed of private experts, etc., will check whether it is a venture company. The validity period of the venture business confirmation will be increased from 2 years to 3 years. Among the △ venture investment type △ research and development type △ guarantee and loan types, which are the types of venture companies, are replaced by the innovation growth type based on innovation and growth evaluation.
From the second half of the year, the legal maximum interest rate is cut to 20% a year.
Investment products such as complex funds
Withdrawal of subscription without conditions within 15 days
You can invest in stock through ISA
○ Securities transaction tax rate cut =From January 1 of next year, the securities transaction tax rate paid when selling stocks will be reduced. The KOSPI falls from 0.1% to 0.08%, and the KOSDAQ from 0.25% to 0.23%. The reduced tax rate will apply until 2022. In 2023, the securities transaction tax rate will be further cut to 0% on the KOSPI and 0.15% on the KOSDAQ.
○ISA allowed to invest in domestic listed stocks=You will be able to put domestic listed stocks in your personal comprehensive asset management account (ISA). Currently, the target of membership is limited to those with income and farmers and fishermen, but from next year, anyone over the age of 19 can join. The contract period is reduced from 5 years or more to 3 years or more. The revised rules will take effect on January 1 of next year.
○Reduction of legal maximum interest rate=The legal maximum interest rate, which was 24% a year, drops to 20% a year from the second half of next year. The government decided to lower the maximum interest rate by revising the Enforcement Decree of the Loan Business Act, saying that it would ease the burden of high interest rates on the common people. The Financial Services Commission predicted that there will be an effect of increasing the number of low-credit groups who pay less interest. .
○Enforcement of the Financial Consumer Protection Act=On March 25 next year, the Financial Consumer Protection Act will be enforced, with the right to withdraw from subscription and the right to terminate illegal contracts. With the subscription withdrawal right, financial products such as banks and insurance as well as investment products such as funds with complex investment structures can be withdrawn within 7 to 15 days without giving any reason. When a financial company violates the Financial Consumer Protection Act, the contract may be terminated within 5 years from the date of the contract or within 1 year from the date of knowledge of the violation.
○ Launch of 4th generation real loss insurance=In the case of non-payment items that are not covered by health insurance, such as manual treatment, a medical insurance product for loss-of-loss medical insurance, which increases the premium for insurance premiums, will be released on July 1 of next year. If the unpaid insurance amount is less than 1 million won, the premium will not change, but if it exceeds 3 million won, it will quadruple.
Sergeant’s salary increased by 12.5% per month, 68,000 won
Expanded the targets for active duty judgment and introduced the PSAT for the 7th grade civil service exam
Self-governing police system implemented from July
○ Soldier salary increase =The salary of soldiers next year will increase by 12.5% from this year. It is 45% of the 2017 minimum wage. Next year’s salary for each rank is 6,08500 won per month for the sergeant, 540,200 won for the sergeant, 490,6900 won for the private and 490,100 won for the individual.
○Expanded targets for active duty judgment =Starting from February next year, the criteria for determining active duty such as body mass index (BMI) will be eased, and the number of active duty soldiers will increase. Previously, if the BMI was below 17 and above 33, it was judged as Level 4, but in the future, only below 16 and above 35 are considered as Level 4. As the criteria for determining the level 4 related to tattoos have been deleted, even if there are many tattoos, they can be eligible for active duty enlistment.
○Additional celebrity to the postponement target=From June 1 of next year, even excellent people in the field of popular culture and arts who have contributed to raising the national status by playing an active part on the world stage will be able to postpone the conscription or convocation.
○ Introduced the Public Official Qualification Assessment (PSAT) to the 7th grade public service examination =The PSAT will be introduced for the first time next year for the 7th grade public service test for public officials. Until this time, only applicants for Level 5 bonds had to take the PSAT. The 7th grade PSAT is held in three areas: linguistic logic, data interpretation, and situation judgment. Applicants are asked to solve 25 questions for each area in 60 minutes. The Korean history subject that took the written test is replaced by the Korean History Proficiency Test. For this reason, the test, which was taken in two stages of writing and interview, is changed to the 1st PSAT, 2nd specialized subject evaluation, and 3rd interview.
○Introduction of the autonomous police system=From July 1 of next year, the autonomous police system will be introduced all over the country. Accordingly, the police are divided into three command and supervision systems: the autonomous police, the national police, and the investigative police. The autonomous police are directed by the autonomous police committee, an administrative agency affiliated with the mayor/do governor, and are in charge of public security affairs, such as cracking down on school violence, crimes related to children and women, and traffic violations. In some prepared cities and provinces, the autonomous police system will be introduced immediately from January 1 of next year.
National expenses support rate for storm and flood damage insurance premiums, shopping malls and factories 70%
Opportunity to live in rural areas for 6 months
Monthly training fee of KRW 300,000
If you have a blind dog, you have to get insurance
○Expansion of insurance premium support for wind and flood damage=From January, the rate of support for the insurance premiums for storm and flood damage for houses and greenhouses will be increased from 52.5% to 70%. Small business owners’ shops and factories will increase from 59% to 70%. Storm and flood damage insurance is a policy insurance that compensates for property damage caused by typhoons, heavy rains, tsunamis, and heavy snow.
○ Increased support for farmers’ pension insurance premiums=From January, the amount of pension insurance premium support for farmers will increase from 43,650 won to 45,000 won. It is intended to ensure a stable retirement life for farmers. It is supported within 50% of the insurance premium to be borne by farmers. Farmers with a total income tax of 60 million won or more or a property tax of 1 billion won or more are not eligible for pension insurance premiums.
○Support for living in rural areas in advance=For those who have a burden on returning to farming due to lack of information and experience about rural life, it provides opportunities to experience rural life within up to six months. It provides programs tailored to the characteristics of each region, and if you sincerely participate in the program for more than 15 days a month, a monthly training fee of 300,000 won is also paid. A detailed implementation plan is currently being prepared, and the project will start in March.
○ Implementation of the direct payment system for public interest in fisheries =Following agriculture, a direct payment system for the public interest will be introduced in the fisheries sector. Applications are accepted in earnest from March. Direct payments include senior fishermen who hand over management to young adults, fishermen who protect fishery resources, and fishermen who produce fish in an eco-friendly manner. Previously, direct payments were given only to fishermen with disadvantaged settlement conditions, such as residents of islands and northern maritime limits, but this time the target was expanded.
○Must join liability insurance for blind dog owners=If you own 5 dog breeds and hybrids: Dosa Dog, American Pit Bull Terrier, American Staffordshire Terrier, Staffordshire Bull Terrier, and Rottweiler, you must purchase insurance.