2024-01-03 01:03:00
People Power Party floor leader Yoon Jae-ok and Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok are taking a commemorative photo prior to the party-government consultation on 2024 economic policy direction held at the National Assembly on the 3rd./Reporter Deok-hoon Lee
On the 3rd, the ruling party decided to increase the income deduction rate for traditional markets in the first half of this year from the current 40% to 80%. The party and government also decided to reduce electricity bills (worth 252 billion won) by 200,000 won each for 1.26 million small and medium-sized business owners. The party and government also decided to reduce the interest burden of self-employed people and small business owners through ‘win-win financial financial support.’ It is said to be worth more than 2.3 trillion won.
The party and government announced this plan following holding a consultation on the direction of economic policy for 2024 at the National Assembly on this day. People Power Party Policy Committee Chairman Yoo Yu-dong said in a briefing following the meeting that day, “We decided to focus on the recovery of the people’s livelihood as we believe that the first half of this year will be a major turning point in the recovery of the people’s livelihood.”
Previously, floor leader Yoon Jae-ok also said in his remarks, “This year’s economic policy direction is to reduce the burden on people’s livelihoods by strengthening support for the self-employed, small business owners, and traditional market merchants, and to provide policy support and consideration for the socially underprivileged, such as expanding jobs for the elderly and increasing living wages.” “The biggest goal should be to stabilize and recover the domestic economy by strengthening it,” he said.
The party and government decided to extend the temporary investment tax credit for facility investment for one more year until the end of this year. Previously, in order to encourage corporate investment, the government increased the tax credit rate for facility investment to a maximum of 25% for large and medium-sized companies and up to 35% for small and medium-sized companies by the end of last year, and plans to extend this until this year.
Chairman Yoo Yu-dong said, “Regarding the recent improvement in exports, we strongly requested that the government strengthen support so that the increase in exports can be quickly connected to investment.” “We have decided to extend the deduction for one more year until the end of this year,” he said.
Chairman Yoo said that the party and government had reached a consensus on reforming the preliminary feasibility system to eradicate the practice of distributing R&D budgets but to focus the budget on challenging and performance-producing R&D. Chairman Yoo said, “The party ordered the government to provide bold tax support to help companies expand R&D investment, and the government decided to actively accept this.” He also said, “The government has decided to promote fundamental institutional improvements to prevent a recurrence of the real estate project financing (PF) incident while encouraging an orderly soft landing through liquidity support.”
Attending the meeting on this day were People Power Party floor leader Jae-ok Yoon, Policy Committee Chairman Yoo Yu-dong, Policy Committee Vice-Chairman Yoo Gyeong-jun, First Policy Coordination Committee Chairman Song Eon-seok, Planning and Finance Committee Secretary Ryu Seong-geol, and Culture, Sports and Tourism Committee Secretary Lee Yong-ho. In attendance from the government were new Deputy Prime Minister Choi Sang-mok, Minister of Culture, Sports and Tourism Yoo In-chon, Minister of Land, Infrastructure and Transport Park Sang-woo, Minister of SMEs and Startups Oh Young-joo, Financial Services Commission Chairman Kim Joo-hyun, and Office for Government Policy Coordination Director Bang Ki-seon. Deputy Prime Minister Choi announced the announcement of economic policy directions at the emergency economic ministers’ meeting he presided over for the first time last week, suggesting economic recovery for people’s livelihoods, management of potential risks, realization of a dynamic economy, and strengthening policies for future generations as four key directions.
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