By Elias Al Helou
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South Korea’s President announces $18 billion support package for micro businesses

The government will expand access to low-interest loans for micro business owners and extend the repayment period for policy loans
South Korea’s President announces $18 billion support package for micro businesses
The President noted that micro business owners are still grappling with debts they took on to remain afloat during the COVID-19 pandemic era.

President Yoon Suk Yeol of the Republic of Korea (South Korea) announced a comprehensive 25 trillion-won ($18 billion) package of support measures for struggling micro business owners. Yoon stated that providing tailored support is a better approach than universal cash handouts. 

According to the Yonhap News Agency, Yoon revealed the support package during a meeting to discuss the direction of economic policy in the second half of 2024. Yoon noted that micro business owners are still grappling with debts they took on to remain afloat during the COVID-19 pandemic era.

As part of the support package, Yoon said the government will expand access to low-interest loans for micro business owners and extend the repayment period for policy loans. The package will also provide subsidies to help cover micro businesses’ electricity and rent costs. 

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Additionally, the tax benefit for landlords who lower rent for micro business tenants will be extended until the end of 2025. Debt restructuring and recovery support will also be made available for micro business owners facing closure.

Yoon highlighted that this multifaceted, targeted approach to supporting the micro business sector is preferable to blanket cash handouts, as it aims to directly address the specific challenges and needs of this critical segment of the economy.

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