A Lifeline for the Self-Employed: Addressing economic Hardship

Democratic presidential candidate Lee Jae-myung has announced a robust plan aimed at bolstering small business owners and self-employed individuals, recognizing their critical role in the nation’s economic foundation. The announcement, made via his Facebook account, underscores a commitment to alleviating financial burdens and fostering a more conducive surroundings for these essential economic actors.

Lee emphasized the precarious situation faced by many small businesses, stating that they are in danger of survival due to rising costs and reduced consumer spending. This initiative seeks to directly address these challenges through a multi-pronged approach.

Key Initiatives: A Detailed Overview

The proposed plan encompasses several key areas designed to provide immediate and long-term relief:

Comprehensive Corona Loan Measures

Acknowledging the ongoing impact of the COVID-19 pandemic, Lee’s plan prioritizes easing the burden of corona loans. This includes special measures ranging from debt restructuring to potential forgiveness, offering a crucial lifeline to businesses struggling wiht pandemic-related debt. Policy funds, such as low-interest loans and customized long-term repayment programs, are also central to this strategy.

We will definitely save small business owners and self -employed people, the roots of our economy.

Lee Jae-myung, Democratic Presidential Candidate

Reducing Management Burdens

beyond direct financial assistance, the plan aims to reduce the overall management burden faced by self-employed individuals. This includes measures such as expanding parental leave allowances and increasing the scope of fire deductions, providing much-needed relief from administrative and regulatory hurdles.

Stimulating Local Economies

Recognizing the importance of local economic activity, the plan proposes expanding the use of local currency and Onnuri gift certificates.These initiatives are designed to encourage consumer spending within local communities, directly benefiting small businesses and fostering economic growth from the ground up.

Supporting Growth and re-entry

The plan also includes provisions for expanding closing funds and re-challenge finance support, enabling businesses to adapt to changing market conditions and providing opportunities for entrepreneurs to re-enter the market after facing setbacks. This forward-thinking approach aims to foster a more resilient and dynamic small business sector.

Fair Economic Platform Ecosystem

Lee’s plan envisions the establishment of a fair economic platform ecosystem. This initiative seeks to create a level playing field for small businesses,ensuring fair competition and preventing exploitation by larger corporations. The specifics of this platform are still under development,but the underlying principle is to promote a more equitable and lasting business environment.

Economic Context: The Importance of Small Businesses

Small and medium-sized enterprises (SMEs) are the backbone of the South Korean economy, accounting for a significant portion of employment and economic output. According to recent data from the Ministry of SMEs and Startups, smes employ over 80% of the workforce and contribute to over 50% of the nation’s GDP. However, these businesses often face unique challenges, including limited access to capital, regulatory burdens, and intense competition from larger corporations.

Lee’s plan represents a significant step towards addressing these challenges and creating a more supportive environment for small businesses to thrive. The success of this initiative will be crucial for ensuring the long-term health and vitality of the South Korean economy.