KFME Calls on Lee Hyoung-il's Economic Team to Raise Simplified Taxation Threshold

[Financial News] The small business community called on newly appointed Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Lee Hyoung-il to serve as the economic control tower in overcoming the crisis facing small businesses by reviving domestic demand, easing high-cost business conditions, and providing tax and financial support.
The Korea Federation of Micro Enterprises issued a statement on the 23rd, saying, "We expect Deputy Prime Minister Lee to draw on the expertise and leadership he has demonstrated in overseeing major economic policies to seek new avenues for small business owners who have been pushed to the brink." The federation also called for continuity in small business policies and faster action to resolve pending issues. 
During his time as a nominee, Deputy Prime Minister Lee visited the KFME on the 7th and said, "Supporting the business stability and growth of small businesses is important to ease polarization in our economy." He added, "We will make every policy effort to ensure that the benefits of growth reach every small business." 
The KFME also identified "restoring momentum to the frozen real economy" as the top priority for Lee Hyoung-il's economic team. It emphasized that measures to boost consumption should be implemented alongside tax support so that funds can circulate through local economies, including neighborhood commercial districts and traditional markets.
Specifically, it called for maintaining the 1.3% preferential VAT deduction rate and the 10 million won cap for sales made through credit cards and other payment methods, as well as raising the threshold for simplified taxation.
In the financial sector, the federation stressed the need to establish a proactive financial support network for small business owners facing difficult circumstances, including extended loan maturities, expanded low-interest refinancing loans, and tailored debt restructuring. It also called for a stronger social safety net to ensure a soft landing for small-scale merchants at risk of closing their businesses. 
The KFME assessed that "the urgency on the ground in neighborhood commercial districts has reached an unprecedented level as prolonged high prices and high interest rates, weakened domestic consumption, and rising costs have been compounded by the offensive of online platforms, unfair trading practices, and the transition of the industrial structure."
The federation also called for policies to strengthen the self-sufficiency of small businesses. The KFME said, "Please work closely with the industry to develop industry-specific scale-up policies for digital transformation and growth so that small businesses can build their own competitiveness amid rapidly changing distribution conditions." It added, "We hope you will devote your policy capabilities to restoring the people's livelihoods and the economy, which are directly tied to the survival of small businesses."

[email protected] Kim Hyun-chul Reporter