Minister of SMEs and Startups Lee So-young expressed understanding on October 23 regarding concerns that tightening the government's inheritance tax exemption requirements could discourage second-generation business leaders. She stated that her ministry would present the positions of small businesses at the tax committee next month.
During a comprehensive national audit session at the National Assembly's Committee on Trade, Industry, Energy, and SMEs, Lee responded to a request from ruling party lawmaker Woo Jae-jun to protect second-generation business leaders, saying, "There are claims that the inheritance tax exemption will be reduced, and we need to ensure their protection."
Lee explained that the proposed reform includes the Ministry of Economy and Finance establishing a review committee to assess industry transitions. She noted that initial discussions with the ministry had concluded with an agreement to include the Ministry of SMEs as a permanent member of the committee.
The inheritance tax exemption allows for up to 60 billion won in tax relief when a small business, operated for over ten years, is passed on to heirs. The Ministry of Economy and Finance proposed in August to extend the management period requirement for the deceased from ten years to thirty years and to increase the post-management period from five years to ten years.
Recently, the government decided to significantly strengthen the requirements and assessments for the inheritance tax exemption due to concerns that it was being used as a means for improper inheritance.
The budget for public delivery apps was also a topic of discussion. When asked by lawmaker Choi Soo-jin about the current status of improvements, Lee stated, "There have been many suggestions that the 124 billion won allocated for public delivery app support should not be primarily used for discount coupons. We will prepare a revised plan and report it to the National Assembly soon."
She added that there are currently twelve public delivery apps with fees below 2%, and the ministry plans to focus support on a select few.
When lawmaker Jo Ji-yeon inquired about the possibility of a cap on fees, Lee acknowledged that this is a contentious issue, stating that it is necessary to limit the rate of increase for small businesses and specific sectors.
In response to Jo's suggestion to lower the interest rate on emergency management stabilization funds for Homeplus vendors to a fixed rate of 2.5%, Lee committed to concluding discussions with the finance authorities by early to mid-next month.
* This article has been translated by AI.
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