Addressing the Crisis: A Lifeline for Self-Employed workers

South Korea’s small business sector, the backbone of its economy, has been grappling with unprecedented challenges. Democratic Party presidential candidate Lee Jae-myung has proposed a robust policy initiative aimed at alleviating the financial strain on small business owners and self-employed individuals, promising to boost sales and foster a more equitable economic environment.

Acknowledging the severe impact of the 3 highs – soaring prices, escalating interest rates, and high exchange rates – compounded by the lingering effects of the COVID-19 pandemic, Lee emphasized the urgent need for government intervention. He highlighted the plight of small business owners who have been disproportionately affected by these economic headwinds.

Tackling Debt and Financial Burdens

A central component of Lee’s plan involves addressing the ballooning debt burden faced by self-employed workers. Prior to the pandemic,their collective debt stood at approximately ₩380 trillion; this figure has since surged,leaving an estimated 430,000 borrowers in a vulnerable position. Lee pledged decisive action to safeguard these individuals, asserting that the obligation for debt incurred during the pandemic should not solely fall on the public.

His proposals include expanding access to low-interest loans and implementing customized long-term repayment programs, providing much-needed financial adaptability.This approach aims to prevent a cascade of business closures and personal bankruptcies, which could have devastating consequences for the broader economy.

it is unfair to pass on the people’s responsibilities to the public about the debt problem that occurred during the Corona period.

Lee Jae-myung, Democratic Party Presidential Candidate

Stimulating Local Economies and Reducing Operational costs

Recognizing the importance of revitalizing local economies, Lee’s plan incorporates measures to boost consumption and reduce the operational burdens faced by small businesses. He proposes expanding the use of local currency and Onnuri gift certificates,encouraging consumers to support local businesses and stimulating economic activity at the grassroots level.

Furthermore, the plan addresses the rising costs of rent, labor, and energy, which are meaningful challenges for small business owners. Measures to ensure openness in administrative expenses and prevent unfair rent increases are proposed, along with initiatives to ease the financial burden associated with unmanned order devices and payment processing fees.

Supporting Recovery and Re-Entry

Lee’s vision extends beyond immediate relief, encompassing long-term support for business owners seeking to recover or transition to new ventures.He proposes establishing an integrated support system to assist those who have been forced to close their businesses, providing access to support funds, re-challenge finance, and employment opportunities. This holistic approach aims to break the cycle of debt and unemployment, empowering individuals to rebuild their lives and contribute to the economy.

Combating Unfair Trade Practices in the Digital Realm

The plan also addresses the growing issue of unfair trade practices in the online platform economy. Lee highlighted the prevalence of excessive fees and demands for advertising costs, which disproportionately affect small businesses operating in the digital space. He pledged to improve the regulatory framework to ensure fair competition and protect small businesses from exploitation.

Enhancing Safety and Welfare

Recognizing the unique challenges faced by women small business owners, Lee’s plan includes measures to enhance their safety and well-being. he proposes mandating relief calls linked with local police to provide immediate assistance in emergency situations. Additionally, the plan includes provisions for expanding parental leave allowances and fire deductions, promoting work-life balance and ensuring adequate compensation in the event of unforeseen circumstances.