Photo = Getty Images Bank.
Detergent, real estate
Inheritance deduction for companies with annual sales of less than 400 billion won
○Inheritance tax arrears extended arrears =The annuity payment system, which can divide inheritance tax, will be expanded from 5 years to 10 years. For property inherited from this year, inheritance tax can be paid in installments over a period of up to 10 years from the date of commencement of inheritance.
○Expansion of various inheritance deductions =Spouses of lineal descendants, such as sons and grandchildren, can also receive deductions for inheritance deductions in the house they live in with their parents. The scope of companies eligible for deductions related to family business inheritance will also be expanded. Until last year, it was possible for medium-sized companies with annual sales of less than 300 billion won, but from this year on, up to companies with less than 400 billion won can receive inheritance deductions. Agricultural inheritance deduction limit will also be raised from 1.5 billion won to 2 billion won.
○ Strengthen submission of overseas real estate data=The number of matters to be reported by citizens and domestic corporations who own overseas real estate increases. Until last year, only the acquisition, operation, and disposal were reported, but from this year, data on the details of possession must also be submitted. Failure to submit data or false reporting by the end of this year will result in a fine of not more than 100 million won.
○ Relaxation of tax support requirements for U-turn companies =Income tax and corporate tax reduction requirements for companies moving overseas business sites to Korea will be relaxed. What used to be applied within one year from transfer, closure, or reduction of overseas business sites to new or expanded domestic business sites will be extended to two years. The tax benefit requirements for relocating the headquarters from the metropolitan area to provincial areas will also be relaxed by preparing standards during the first quarter.
○Expanded tax support for tomorrow’s Chaeum Deduction =The rate of reduction of income tax for young people who are accumulating assets by using the Tomorrow Chaeum Deduction will increase. The income tax reduction rate for deductibles received from related funds will be increased from 50% to 90% for those employed at small and medium-sized enterprises (SMEs) and from 30% to 50% for those employed at medium-sized enterprises (SMEs).
○ Relaxation of Good Landlord Support Requirements=The scope of tax credit applied to the rent reduction amount of rental business operators who lowered the commercial rental fee will be expanded. Previously, it was limited to those who rented before January 31, 2020, but from this year, if you rent before June 30, 2021, you can receive related tax benefits. Tax support, which was scheduled to close at the end of last year, will also be extended until this year.
Illustration = Correspondent Kim Seon-woo
Finance/Securities
From the 1st, if the total loan exceeds 200 million won, the DSR regulation will be applied
○ Significant expansion of DSR application=The application of the borrower unit’s total debt-to-income ratio (DSR) will be expanded in two stages. From January 1, DSR will be applied to loans exceeding KRW 200 million per person. The DSR will continue to apply to purchases of houses with sales exceeding 600 million won and credit loans exceeding 100 million won, which have been in effect since July of last year.
○Overseas cryptocurrency transaction report=Cryptocurrency overseas accounts traded abroad will also be reported. Koreans and domestic corporations whose account balance exceeds 500 million won on any one of the last days of each month must report the relevant account information to the competent tax office. The reporting period is from June 1 to 30 of the following year, so this year’s report will be made in June 2023.
○ Allowed to trade in decimal units =When trading domestic and foreign stocks, it becomes possible to split into 0.3 and 0.4 shares instead of 1 or 2 shares. From the fourth quarter of last year, minority unit trading was possible only for overseas stocks, but from the second half of this year, domestic stocks can also be split and sold. The number of securities companies that support the transaction will also be greatly expanded from two to 20. Investors can exercise their rights as a shareholder, such as dividends and voting rights, as much as the shares purchased by splitting them.
○Youth Hope Savings Savings Release =The Youth Hope Savings Savings Savings Savings Savings Program will be launched for young people aged 19-34 to help build assets. It is a savings product that pays 500,000 won per month for 2 years. In the first year, an additional 2 percentage points of income is supported on the market interest as incentives, and in the second year, the related support increases to 4 percentage points. Interest income is also tax-free. Only young people with an annual gross salary of 36 million won or less and a global income of 26 million won or less can join.
○Debt adjustment for young debtors =An integrated debt adjustment program will be implemented for young people who are having difficulties with multiple debts, such as student loans and loans from the financial sector. In the case of student loans, the principal can be reduced by up to 30%, and delinquent interest can be fully reduced. The amortization period will also be extended from 10 years to 20 years. The debt adjustment fee of 50,000 won per person is also exempted.
Labor, Welfare, Education
Minimum hourly wage of 9160 won… 1914,440 won if you work for a month
○ Minimum wage increase =The minimum wage is raised to 9,160 won per hour. Converted to a daily wage, it is 73,280 won for 8 hours. The monthly conversion amount is 1914,440 won including holiday pay. The minimum wage applies equally to all workplaces.
○Applied platform worker employment insurance=Quick service drivers and surrogate drivers working on the platform will also be able to receive unemployment benefits and maternity benefits as employment insurance is applied. In a small business with less than 10 workers, low-income platform workers with monthly remuneration of less than 2.3 million won and their business owners (the contracting parties) can receive 80% of the employment insurance premium.
○Private companies applied on public holidays =Private companies with five or more and fewer than 30 employees must also guarantee public holidays and substitute public holidays such as holidays and national holidays as paid holidays.
○Expand intensive support for infants and toddlers=Children who were born this year and who have been given a resident registration number will receive a voucher worth 2 million won at a time. Children aged 0 to 1 are paid 300,000 won in cash every month as an infant allowance. When using daycare centers and full-day childcare services, childcare fees and childcare subsidies are also supported as vouchers. The age of support for child allowance, which used to pay 100,000 won in cash every month, will also be extended from 7 to 8 years old.
○Enhance the fairness of the private school recruitment process=From February 11, private elementary, middle, and high schools will be required to conduct an open screening when new office workers are hired. If you cheat in the recruitment exam, your pass may be canceled or the exam may be invalidated.
○Expand national scholarship support=From the first semester of this year, the amount of national scholarship support for low-income, middle-class, and multi-child households will be expanded. In the case of basic and second-class households, 7 million won per year for the first child, and full tuition for the second child and above. For low-income and middle-class households, support for households in the 5th to 8th section of the financial aid will be expanded to 3.5 million to 3.9 million won per year.
○ Abolition of game shutdown =The so-called ‘game shutdown system’, which prohibits the provision of Internet games to teenagers under the age of 16 from midnight to 6 am, will be abolished 10 years after its introduction. Instead of a compulsory ban, the system will be unified with the ‘game time selection system’, in which parents and children voluntarily control game use time.
Military service and administration
When taking a dog for a walk, it must be on a leash within 2 meters.
○Soldier Salary Increase =The salaries of soldiers will increase by 11.1% compared to last year. Accordingly, the monthly salary received by the sergeant is 67,100 won, which is 50% of the 2017 minimum wage (about 1.35 million won). Privateers are paid 511,100 won, privates are paid 552,100 won, and corporals are 610,000 won. The training compensation paid to reservists who participated in mobilization training is expected to increase by 32% from 47,000 won to 62,000 won this year.
○Expand opportunities to postpone enlistment=The postponement of the enlistment date due to illness is extended from a maximum of 60 days to 90 days. This is to help applicants for postponement of enlistment receive sufficient treatment. The number of postponement of the enlistment date due to start-up is currently limited to two times, but from this year, the limit on the number of times will be abolished. The target of postponement of the enlistment date related to taking the GED will be extended not only to those taking the GED for high school graduation, but also those taking the GED for graduating from elementary and middle school.
○Limited dog leash length=From February 11th, the length of collars and chest straps used when going out with dogs is limited to 2m. Even if a leash longer than 2m is used, if the length of the leash between an actual dog and a person is limited to less than 2m, it is considered to be in compliance. In addition, the dog owner must hold the dog directly in a common space inside a multi-unit building such as an apartment building or hold the dog by the nape of the leash or the handle of the chest leash.
○Reorganization of the 9th grade civil service exam =The subjects of the public official 9th grade open recruitment test will be changed. High school course subjects such as social studies, science, and mathematics were excluded from elective subjects, and direct current-specific subjects such as public administration were designated as mandatory subjects to take. Accordingly, applicants who have been able to choose two subjects from general administration law, introductory public administration, social studies, science, and mathematics, must take the general administrative law and introductory public administration examinations.
○Issuance of next-generation e-passport=The Ministry of Foreign Affairs will start issuing next-generation e-passports with enhanced security and durability. As a result, the passport color, which used to be green, will change to navy blue in the future. The next-generation e-passport does not include a resident registration number, and a PC-type personal information page is introduced. The number of visa visas will also be expanded, and Korean cultural heritage will be used in the design.
Industry and environment
Existing apartments must also install electric vehicle chargers
○Expand the transparent PET bottle separation system=The transparent plastic bottle separation system, which started for apartment houses in December last year, will be implemented in single-family housing areas this year. For transparent PET bottles, empty the contents, rinse, remove the label, bleed the air, and close the lid before discharging.
○Expansion of companies subject to environmental information disclosure=Listed corporations with total assets of 2 trillion won or more are obliged to disclose environmental information. Environmental information is updated at the end of every year, and the information to be disclosed can be checked through the Environmental Information Disclosure System.
○Exemption from radio wave certification Allowed for second-hand sales of overseas direct purchase electronic products=In the future, products that have been brought in by an individual for overseas direct purchase, etc. for more than one year will be considered as exempt from conformity assessment (radio certification) and can be resold. In the past, radio wave certification was exempted for personal use, and sales of electronic products brought in from abroad to others were restricted to one per person.
○Introduction of eco-friendly vehicle purchase target system for commercial vehicles=An eco-friendly car purchase target system will be introduced, which requires rental cars, large companies, buses, taxis, and freight companies to purchase more than a certain percentage of eco-friendly cars when purchasing or renting new cars. The number of EV chargers is also expected to increase. The government will extend the obligation to install electric vehicle chargers, which was imposed only on new facilities, to existing facilities.
○Protection of portraits and names of celebrities =From June 8, property values such as portraits and names of celebrities will be legally protected. Until now, only mental damage (alimony) could be protected under the Civil Act. In the future, if economic damage occurs due to infringement of one’s portrait or name, civil remedies such as a request for injunction and compensation for illegal acts, and administrative remedies such as an administrative investigation by the Intellectual Property Office and recommendations for correction of illegal acts are possible.
○ Relaxation of broadcast program programming =Broadcasters are expected to see more entertainment programs. The upper limit on the proportion of entertainment programs among program programming regulations will be relaxed from 50% or less to 60% or less. The ratio of compulsory programming in the main broadcasting field of professional programming broadcast channel users (PP) will be lowered from more than 80% to more than 70%. The period for calculating the programming ratio is also simplified to semi-annual for the existing monthly and quarterly units, and to annual for those that used to be semi-annual.
Livestock, fisheries and food
Weekend farms also submit farming plans… Reinforcement of restrictions on farmland acquisition
○ Relaxation of farmland pension age =From the first quarter, the age for joining the farmland pension will be lowered from 65 to 60. Considering the reality of needing large sums of money for children’s education, the age standard was lowered. In addition, low-income farmers and long-term farmers can sign up for a preferential product that pays an additional 5-10% of their monthly payment from January.
○ Strengthen examination for issuance of farmland acquisition qualifications=After May 18, even when acquiring farmland for weekend/experience farming purposes, you must submit a farming plan to be issued a farmland acquisition qualification certificate. It was decided to restrict the issuance of agricultural certificates if there were items not specified in the preparation of the agricultural management plan or if supporting documents were not submitted. When acquiring farmland with other people, no more than 7 people per lot is allowed. Even if these conditions are not met, an agrochemical certificate will not be issued. This is because the law, which has been strengthened since last year’s LH (Korea Land and Housing Corporation) executives and staff speculation on farmland, will take effect from this year.
○ Low-carbon rice paddy management technology dissemination =In order to achieve carbon neutrality in the agricultural sector, a pilot project for disseminating low-carbon rice water management technology will start this year. The plan is to develop an optimal model by demonstrating the effect of shallow irrigation of paddy water required to reduce methane generated during rice cultivation on production, etc.
○Strengthening business standards related to pets=To promote the welfare of companion animals, the business standards of related companies will be strengthened. Animal grooming businesses must install an image information processor that can check the condition of animals, and transporters must install seat belts to minimize animal movement during transportation. The amendments will take effect from June 18, this year.
○Youth fishing boat rental=The government subsidizes half of the rental fee for fishing boats to young people who want to start a fishing business. The scale of this year’s project is about 10 coastal fishing boats, and the maximum amount that can be supported is up to 2.5 million won per month.
○Forestry and forestry public interest direct payment system=We pay public interest direct payments to farm prices that produce forest products. From April 1, 2019 to September 30, this year, mountain areas registered as agricultural businesses for forestry are eligible, and mountain areas in residential, commercial, and industrial areas are excluded. Direct payments are paid to those who prove that they are actually engaged in forestry with sales receipts and forest management records. Those who wish to receive direct payment can apply at the Eup, Myeon, or Dong Community Center after the announcement of the project is published during the first half of the year.
