GOVT TO ASSIST SMALL BUSINESSES

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With the self-employed and small businesses experiencing a blow by the coronavirus pandemic, The Korean government and public agencies are stepping in to help alleviate the difficulties they're facing. The government also plans to expand tax credits for credit card payments and cash receipts to up to 80 percent to stimulate private sector consumption.

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The salient point of the government's new policy is to spend money in advance to help businesses that have borne the brunt of the coronavirus pandemic. As part of this measure, the government will sign contracts with restaurants, airline companies and organizers of international events and festivals in the first half of the year to pay them up to 80 percent in advance. The government will spend more than two trillion won on smart devices for distance learning, quarantine items and official state vehicles to help the domestic market withstand the crisis.

[Soundbite] PRES. MOON JAE-IN : "We will have not only the central government but public agencies, local governments and provincial public corporations join this caus to help businesses around the nation."

To stimulate private consumption, tax credits for credit card payments and cash receipts in the dining and hospitality sectors will be temporarily expanded to 80 percent until the end of June. Workers earning 50 million won a year will be able to receive a tax credit of three million won if they spend 20 million won with their credit cards in the first half of the year. Private firms will receive one percent cuts on their income and corporate taxes for making payments and purchases in advance. To help small and medium sized firms and entrepreneurs, the government will allow them to pay their aggregate income taxes by the end of August.

[Soundbite] HONG NAM-KI(MINISTER OF FINANCE) : "The issue of cash liquidity is urgent at this point when the number of struggling businesses is expected to grow. We will allow small businesses to receive tax refunds in the first half of the year."

Individuals and the self-employed will be allowed to postpone their loan payments by up to one year to help them cope with the economic crisis.