Kim Tae-kyu Proposes Bill for Full Income Tax Exemption for Youth Employed in SMEs

Kim Tae-kyu, a lawmaker from the People Power Party representing Ulsan Nam-gu Gap, introduced a bill on July 16 to increase the income tax exemption rate for young people employed in small and medium-sized enterprises (SMEs) to 100% and extend the sunset clause by three years.

Under current law, young workers in SMEs receive a 90% income tax exemption for five years, capped at 2 million won annually, but this applies only to those who are employed by December 31 of this year.

Concerns have been raised about the ongoing wage gap between large corporations and SMEs, which has exacerbated recruitment challenges for smaller businesses. Critics argue that the current level of tax relief is insufficient to address this disparity.

The proposed amendment aims to raise the income tax exemption for young workers from 90% to 100% and extend the expiration date to December 31, 2029.

Kim stated, "This bill is designed to increase the real income of young people, lowering the barriers to employment in SMEs, while also providing these businesses with greater opportunities to secure talent. I will do my utmost to expand tax support so that both young people and SMEs can grow together."