Small business owners review differential support according to sales decline
The government is also thinking about providing labor expenses to the Alba students.
The part-time labor union held a press conference in Myeong-dong, Seoul on the 17th, and is demanding that the 4th disaster subsidy includes minimum wage workers. yunhap news
The ruling party and the government are scheduled to hold a discussion with the high-ranking party administration this evening to discuss how to provide the 4th disaster support fund of up to 4 million to 5 million won to SMEs and small businesses. It is known that they are looking into a plan to divide the subsidies for small business owners into two or three sections depending on how much sales have decreased. It is also discussed how to provide subsidies for labor costs to small business owners who newly hired part-time workers amidst the unprecedented employment cold and include street vendors as targets for special type workers (special high school) support.
Expected to expand labor cost support to’historical employment colds’
According to the Democratic Party and the government on the 21st, the ruling party, the Ministry of Strategy and Finance, and the Blue House will hold a discussion with the high-level party administration at the Prime Minister’s Consulate in Samcheong-dong, Seoul, and discuss plans to organize the 4th disaster support fund and the 1st supplementary budget. Based on this, the government is expected to submit a supplementary bill to the National Assembly early next month.
The Ministry of Science and Technology is considering subsidizing small and medium-sized businesses and small business owners who are newly hiring employees to revive the job market frozen by the novel coronavirus infection (Corona 19). According to the National Statistical Office, the number of employed in January this year decreased by 982,000 from last January. It recorded the largest decline since December 1998 (-1283,000 people) during the financial crisis.
The government is also considering unconventional measures to subsidize labor costs when hiring temporary and daily workers as well as regular workers. Currently, the government is operating the’Additional Youth Employment Incentive System’, which provides 9 million won per person per year for three years to small and medium-sized companies that employ young people as regular workers. It is devising a plan to expand the scope of support for small business owners and self-employed persons even when hiring temporary and daily jobs. Temporary workers are workers whose employment contract period is less than 1 month to less than 1 year, and daily workers are less than 1 month.
Differential payment according to the rate of decrease in sales
It is reported that the ruling party and the government are also discussing a plan to divide the disaster subsidies for small businesses into two or three sections according to the rate of decrease in sales. For example, if sales were paid 1 million won to small business owners whose sales decreased by less than 10% compared to before the spread of Corona 19, 1.5 million won to those who decreased by 30%, and 2 million won to those who decreased by 50%. This is an example, and it is undecided how to set the comparison point, sales section, and support amount.
It is known that there is room for support in the same way not only for general industries whose sales have decreased, but also for those that are prohibited or restricted from collectively. Earlier, in the case of the 3rd disaster subsidy, 2 million to 3 million won was paid to the prohibited and restricted businesses regardless of the decrease in sales. The general industry paid 1 million won to determine whether the sales declined.
The party government is also considering expanding the target by raising the base line for subsidy payments for general industries from’annual sales of 400 million won or less’ to’annual sales of less than 1 billion won’. In a report on the National Assembly’s Planning and Finance Committee on the 16th, Deputy Prime Minister Hong said, “We have provided support for small business owners for less than 400 million won in sales, but (in the future), even if the sales exceeded 400 million won, we reviewed a plan to include additional people who suffer. “There is,” he said, “I can’t tell you conclusively, but I’m reviewing it to (expand) it up to 1 billion won.”
The maximum amount of subsidies for businesses that are prohibited from collective, restricted business, and general business is being discussed in the range of 4 million to 5 million won.
Disaster subsidies paid to street vendors?
Support for the underprivileged, such as special advisors and freelancers, is also expected to expand. Earlier, at the time of the third disaster support payment, 500,000 won was paid to those who received the second support, and 1 million won to new beneficiaries. It is highly likely that support will be provided in a similar manner.
However, the target scope is a variable. Under the principle of’reinforcing the blind spot of existing support and providing thicker support’, the party government decided to prepare a plan for the 4th disaster support payment. At this time, various interpretations of’blind spots’ come out. Lee Nak-yeon, head of the Democratic Party, said on the 15th, “People such as street vendors, platform workers, or new merchants, such people have not yet been incorporated into the system’s network,” and said that the blind spot of corona 19 support should be reduced. Fierce criticism is expected if disaster assistance is paid to street vendors who operate illegally without paying taxes.
The size of the supplement, the former “more than 20 trillion won”, the government “12 trillion won”
The ruling party is demanding more than 20 trillion won a day for a’super extra’. Kim Jong-min, the top member of the Democratic Party, said in a radio interview on the 17th, “At least 20 trillion won is needed.” Even if the government repeatedly stated that it is necessary to select the vulnerable class and support it thickly when considering equity and finances, it is pressured by saying, “Please put customized support and support for the whole people together on the table and discuss” (Lee Nak-yeon, CEO of the Democratic Party). I am doing it. This is the reason for the interpretation that the ruling party has stepped out to loosen money ahead of the April re-election election.
Deputy Prime Minister Hong Nam-ki and Minister of Equipment and Materials are known to have made an opinion that “more than 12 trillion won is difficult” at the party administration meeting held on the 14th. This is because the country’s livelihood is not easy because it has continued to expand finances since before the Corona 19 crisis. This extra budget must be covered by 100% deficit government bonds, and this debt is piled up under the burden of future generations. Some expect that the supplementary bill will be organized at around 15 trillion won through compromise between the ruling party and the government.
Reporter Koo Eun-seo [email protected]