Small businesses are 'top priority,' Yoon tells business owners

Politics

Published: 03 Nov. 2023, 16:55

Small businesses are 'top priority,' Yoon tells business owners

President Yoon Suk Yeol touches a poodle at the Pet Industry Association's booth at the small business convention at Kintex exhibition hall in Goyang, Gyeonggi, on Friday. [PRESIDENTIAL OFFICE]

President Yoon Suk Yeol promised to provide more financial support to small businesses in the form of low-interest loans and waivers for Covid-related loan repayments after small business associations urged the government to ease hardship among business owners.

Yoon made the pledge in his address to a convention of small and medium-sized enterprises (SMEs) at the Kintex exhibition hall in Goyang, Gyeonggi.

The exhibition showcases businesses owned by over 2,000 people from various industries, including restaurants and hairdressing.

Oh Se-hee, chair of the Korea Federation of Micro Enterprise, speaks at the small business convention at Kintex exhibition hall in Gyeonggi, Goyang, on Friday. [YONHAP]

Oh Se-hee, chair of the Korea Federation of Micro Enterprise, thanked Yoon and other officials, including Minister of SMEs and Start-ups Lee Young, for attending the convention before asking the government to do more to aid small businesses.

“Hiring has become more difficult for us small business owners since the minimum wage rose by 50 percent in the last few years,” Oh said as she urged the government’s Minimum Wage Commission to come up with a flexible minimum wage scheme that “reflects the perspectives of workers from different industries.”

Oh also called on the government to overhaul business regulations and education to “reduce the risk of closure and strengthen business soundness” among first-time business owners, as well as to reduce the financial burden of businesses struggling to make loan repayments.

During his speech, Yoon called small businesses “the highest priority” of his administration, noting that aides and staff from the presidential office recently made dozens of visits to shops and small businesses across the country to look for ways to ease their financial hardship.

Yoon noted that this administration has set aside 30 trillion won ($22.7 billion) in funds in post-Covid business stimulus, in addition to earmarking 4 trillion won in next year’s budget to furnish low-interest loans.

He also promised to waive 800 billion won of loan repayments that were distributed to small business owners and self-employed individuals during the Covid-19 pandemic.

The loan waiver program was announced earlier this week after a meeting between government officials, the presidential office and the conservative People Power Party.

Current legislation on government loans distributed during the pandemic requires businesses to pay back relief money once their sales increase.

Yoon also said the government will allow gas and heating bills to be paid in installments and subsidize the replacement of 64,000 aging air conditioning and heating units used by businesses.

Both Oh and the presidential office noted that Yoon was the first president to attend the convention, which has taken place annually for the past 18 years.

BY MICHAEL LEE [lee.junhyuk@joongang.co.kr]