Ruling party considers budget increase for small business owners

The People Power Party is currently assessing the possibility of increasing the budget next year, aiming to assist small business owners. The current allocation for this purpose stands at 5 trillion won. The government has reportedly expressed support for the ruling party’s proposal to boost funding for improving the people's livelihoods.

An official from the People Power Party has stated that it intends to reduce the budget in areas where the need is less pressing and, instead, augment funding in areas directly affecting the lives of the people, particularly those who are self-employed and small business owners. The budget adjustments will primarily target projects with low enforcement rates. Another party representative emphasized that the ruling party's role is to increase essential budget allocations when both the public’s economic well-being and the real economy are facing difficulties. In the budget proposal presented by the Ministry of SMEs and Startups, approximately 4.99 trillion won has been designated to support small business owners and relevant policy funds.

While the ruling party had previously supported the government’s frugal fiscal policy, it has now shifted its stance to consider increasing the budget for areas where economic hardship is most keenly felt, particularly in response to the sentiments expressed during the recent mayoral by-election in Gangseo-gu.

President Yoon is scheduled to deliver a speech on Oct. 31 regarding the budget proposal, which is expected to include a call for a budget increase. A ruling party official has indicated that this speech will offer a timely opportunity to convey the president’s perspective on improving the people's livelihoods.


Hye-Ryung Choi herstory@donga.com